Lam Research Corporation (LRCX) vs Onto Innovation Inc. (ONTO)

Lam Research Corporation and Onto Innovation Inc. are both Semiconductor Equipment & Materials companies. Lam Research Corporation is the larger, with a market value of $347.2B against $11.4B — 30.5× the size. Lam Research Corporation trades at the lower P/E: 45.6× against 82.0×. Lam Research Corporation grew revenue faster over the last twelve months: 26.0% against 8.08%. Lam Research Corporation has the higher net margin (31.3% vs 11.8%) and the higher return on invested capital (48.2% vs 5.56%). Across the 22 metrics below, Lam Research Corporation leads on 12 and Onto Innovation Inc. on 10.

Valuation

Metric LRCX ONTO Semiconductor Equipment & Materials median
P/E 45.59 82.04 45.03
P/S 14.26 9.74 4.64
P/B 26.56 5.67 3.22
Price to free cash flow 67.73 43.19 48.18
EV/EBITDA 38.12 48.58 33.11
EV/Sales 14.18 9.37 5.52
Earnings yield 2.19% 1.22% 1.41%
Free cash flow yield 1.48% 2.32% 1.67%

Profitability

Metric LRCX ONTO Semiconductor Equipment & Materials median
Gross margin 50.47% 50.36% 43.95%
Operating margin 35.29% 12.02% 10.32%
Net margin 31.27% 11.84% 7.45%
Free cash flow margin 21.05% 22.54% 6.77%
Return on equity 65.07% 6.82% 4.78%
Return on assets 32.38% 4.54% 3.62%
Return on invested capital 48.23% 5.56% 6.10%

Growth

Metric LRCX ONTO Semiconductor Equipment & Materials median
Revenue growth (TTM) 26.02% 8.08% 14.60%
EPS growth (last fiscal year) 38.80% (31.53%) (4.56%)
Revenue growth, 5-year CAGR 9.70% 12.55% 10.11%
Net income growth, 5-year CAGR 13.20% 34.54% 0.00%

Health

Metric LRCX ONTO Semiconductor Equipment & Materials median
Debt to equity 0.30 0.77 0.09
Current ratio 2.63 9.73 3.66
Net debt to EBITDA (0.21) (3.39) (0.49)

Dividend

Metric LRCX ONTO Semiconductor Equipment & Materials median
Dividend yield 0.42% — 0.42%
Payout ratio 0.19 — 0.19

Size

Metric LRCX ONTO Semiconductor Equipment & Materials median
Market cap 347.22b 11.38b 3.80b

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