Lam Research Corporation (LRCX) vs Qnity Electronics, Inc. (Q)

Lam Research Corporation and Qnity Electronics, Inc. are both Semiconductor Equipment & Materials companies. Lam Research Corporation is the larger, with a market value of $231.4B against $23.0B — 10.0× the size. Lam Research Corporation trades at the lower P/E: 27.9× against 40.6×. Lam Research Corporation grew revenue faster over the last twelve months: 33.4% against 16.5%. Lam Research Corporation has the higher net margin (32.3% vs 10.2%) and the higher return on invested capital (59.1% vs 6.36%). Across the 20 metrics below, Lam Research Corporation leads on 14 and Qnity Electronics, Inc. on 6.

Valuation

Metric LRCX Q Semiconductor Equipment & Materials median
P/E 27.86 40.63 33.70
P/S 9.00 4.22 4.22
P/B 16.91 2.94 2.94
Price to free cash flow 35.98 29.62 31.49
EV/EBITDA 22.89 18.37 22.64
EV/Sales 8.86 4.75 4.97
Earnings yield 3.59% 2.46% 2.02%
Free cash flow yield 2.78% 3.38% 2.27%

Profitability

Metric LRCX Q Semiconductor Equipment & Materials median
Gross margin 51.05% 46.92% 46.86%
Operating margin 36.95% 20.00% 12.02%
Net margin 32.34% 10.16% 10.16%
Free cash flow margin 25.02% 14.26% 6.73%
Return on equity 70.12% 6.46% 5.31%
Return on assets 35.02% 4.10% 4.10%
Return on invested capital 59.12% 6.36% 6.36%

Growth

Metric LRCX Q Semiconductor Equipment & Materials median
Revenue growth (TTM) 33.36% 16.51% 15.82%
EPS growth (last fiscal year) 38.80% (4.56%) (4.56%)
Revenue growth, 5-year CAGR 9.70% — 10.11%
Net income growth, 5-year CAGR 13.20% — 0.00%

Health

Metric LRCX Q Semiconductor Equipment & Materials median
Debt to equity 0.27 0.51 0.09
Current ratio 2.48 2.09 3.56
Net debt to EBITDA (0.21) 2.31 (0.49)

Dividend

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

Size

Metric LRCX Q Semiconductor Equipment & Materials median
Market cap 231.35b 23.02b 3.04b

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