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 $231.4B against $7.7B — 30.2× the size. Lam Research Corporation trades at the lower P/E: 27.9× against 58.7×. Lam Research Corporation grew revenue faster over the last twelve months: 33.4% against 8.08%. Lam Research Corporation has the higher net margin (32.3% vs 11.8%) and the higher return on invested capital (59.1% vs 5.56%). Across the 22 metrics below, Lam Research Corporation leads on 13 and Onto Innovation Inc. on 9.

Valuation

Metric LRCX ONTO Semiconductor Equipment & Materials median
P/E 27.86 58.67 33.70
P/S 9.00 6.96 4.22
P/B 16.91 4.06 2.94
Price to free cash flow 35.98 30.89 31.49
EV/EBITDA 22.89 34.20 22.64
EV/Sales 8.86 6.60 4.97
Earnings yield 3.59% 1.70% 2.02%
Free cash flow yield 2.78% 3.24% 2.27%

Profitability

Metric LRCX ONTO Semiconductor Equipment & Materials median
Gross margin 51.05% 50.36% 46.86%
Operating margin 36.95% 12.02% 12.02%
Net margin 32.34% 11.84% 10.16%
Free cash flow margin 25.02% 22.54% 6.73%
Return on equity 70.12% 6.82% 5.31%
Return on assets 35.02% 4.54% 4.10%
Return on invested capital 59.12% 5.56% 6.36%

Growth

Metric LRCX ONTO Semiconductor Equipment & Materials median
Revenue growth (TTM) 33.36% 8.08% 15.82%
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 0.27 0.77 0.09
Current ratio 2.48 9.73 3.56
Net debt to EBITDA (0.21) (3.39) (0.49)

Dividend

Metric LRCX ONTO Semiconductor Equipment & Materials median
Dividend yield 0.59% — 0.59%
Payout ratio 0.17 — 0.16

Size

Metric LRCX ONTO Semiconductor Equipment & Materials median
Market cap 231.35b 7.66b 3.04b

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