Comparing Lam Research (LRCX) and Intevac (IVAC)

Lam Research (NASDAQ: LRCX) and Intevac (NASDAQ:IVAC) are both computer and technology companies, but which is the superior business? We will contrast the two companies based on the strength of their dividends, profitability, risk, valuation, institutional ownership, analyst recommendations and earnings.

Analyst Ratings

This is a summary of current recommendations and price targets for Lam Research and Intevac, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Lam Research 0 1 23 0 2.96
Intevac 0 1 4 0 2.80

Lam Research currently has a consensus target price of $250.34, indicating a potential upside of 30.45%. Intevac has a consensus target price of $12.38, indicating a potential upside of 98.00%. Given Intevac’s higher possible upside, analysts plainly believe Intevac is more favorable than Lam Research.

Valuation and Earnings

This table compares Lam Research and Intevac’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Lam Research $8.01 billion 3.90 $1.70 billion $9.98 19.23
Intevac $112.85 million 1.24 $4.11 million $0.17 36.76

Lam Research has higher revenue and earnings than Intevac. Lam Research is trading at a lower price-to-earnings ratio than Intevac, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Lam Research and Intevac’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Lam Research 18.32% 41.25% 22.18%
Intevac 3.65% 4.89% 3.43%

Insider & Institutional Ownership

90.3% of Lam Research shares are held by institutional investors. Comparatively, 70.3% of Intevac shares are held by institutional investors. 0.4% of Lam Research shares are held by company insiders. Comparatively, 13.9% of Intevac shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Dividends

Lam Research pays an annual dividend of $2.00 per share and has a dividend yield of 1.0%. Intevac does not pay a dividend. Lam Research pays out 20.0% of its earnings in the form of a dividend.

Risk & Volatility

Lam Research has a beta of 1.41, suggesting that its stock price is 41% more volatile than the S&P 500. Comparatively, Intevac has a beta of 0.88, suggesting that its stock price is 12% less volatile than the S&P 500.

Summary

Lam Research beats Intevac on 12 of the 16 factors compared between the two stocks.

Lam Research Company Profile

Lam Research Corporation designs, manufactures, markets, refurbishes, and services semiconductor processing equipment used in the fabrication of integrated circuits worldwide. The company offers thin film deposition products, including SABRE electrochemical deposition products for copper damascene manufacturing; ALTUS systems to deposit conformal atomic layer films for tungsten metallization applications; VECTOR plasma-enhanced chemical vapor deposition (CVD) and atomic layer deposition systems to deposit oxides, nitrides, and carbides for hardmasks, multiple patterning films, anti-reflective layers, multi-layer stack films, and diffusion barriers; and Striker atomic layer deposition systems that deliver conformal dielectric films for spacer-based patterning and liner applications in various advanced memory and logic structures. Its thin film deposition products also comprise SPEED high-density plasma CVD products for applications in shallow trench isolation, pre-metal dielectrics, inter-layer dielectrics, inter-metal dielectrics, and passivation layers; and SOLA ultraviolet thermal processing products for treatment of back-end-of-line (BEOL) low-k dielectric films and front-end-of-line silicon nitride strained films. In addition, the company offers plasma etch products, such as Kiyo that provide solutions for conductor etch applications; Versys metal products, which offer a platform for BEOL metal etch processes; Flex for dielectric etch applications; and Syndion to address various through-silicon via etch and complementary image sensor etch applications. Further, it provides single-wafer clean products comprising EOS, Da Vinci, DV-Prime, and SP series products for wet etch and clean applications in wafer-level packaging; and Coronus plasma-based bevel clean products to enhance die yield by removing particles, residues, and unwanted films from the wafer's edge, as well as legacy products. The company was founded in 1980 and is headquartered in Fremont, California.

Intevac Company Profile

Intevac, Inc. (Intevac) is a provider of vacuum deposition equipment for a range of thin-film applications, and digital night-vision technologies and products to the defense industry. The Company’s segments include Thin-film Equipment and Photonics. The Company designs, manufactures, markets and services capital equipment used to deposit thin films and lubricants onto substrates to produce magnetic disks that are used in hard disk drives. Its thin film equipment products include 200 Lean Disk Sputtering System, 200 Lean Etch and Deposition System, AccuLuber Disk Lubrication System, INTEVAC VERTEX System, INTEVAC MATRIX Implant System, ENERGi Implant System and INTEVAC MATRIX System. The Company’s photonic segment develops, manufactures and sells compact digital-optical products for the capture and display of low-light images.

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