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 $390.4B against $25.6B — 15.3× the size. Qnity Electronics, Inc. trades at the lower P/E: 44.5× against 54.4×. Lam Research Corporation has the higher net margin (31.3% vs 11.3%) and the higher return on invested capital (48.2% vs 6.10%). Across the 19 metrics below, Lam Research Corporation leads on 11 and Qnity Electronics, Inc. on 8.

Valuation

Metric LRCX Q Semiconductor Equipment & Materials median
P/E 54.44 44.54 54.39
P/S 17.03 5.01 6.08
P/B 31.72 3.46 4.89
Price to free cash flow 80.88 31.44 60.92
EV/EBITDA 45.57 20.55 39.95
EV/Sales 16.95 5.60 6.36
Earnings yield 1.84% 2.25% 1.14%
Free cash flow yield 1.24% 3.18% 1.28%

Profitability

Metric LRCX Q Semiconductor Equipment & Materials median
Gross margin 50.47% 46.22% 43.95%
Operating margin 35.29% 19.87% 10.32%
Net margin 31.27% 11.25% 7.45%
Free cash flow margin 21.05% 15.95% 6.77%
Return on equity 65.07% 6.36% 4.78%
Return on assets 32.38% 8.18% 3.62%
Return on invested capital 48.23% 6.10% 6.10%

Growth

Metric LRCX Q Semiconductor Equipment & Materials median
Revenue growth (TTM) 26.02% — 14.60%
EPS growth (last fiscal year) 38.80% (4.56%) —
Revenue growth, 5-year CAGR 9.70% — 8.85%
Net income growth, 5-year CAGR 13.20% — 0.00%

Health

Metric LRCX Q Semiconductor Equipment & Materials median
Debt to equity 0.30 0.53 0.09
Current ratio 2.63 2.01 3.66
Net debt to EBITDA (0.21) 2.31 (0.49)

Dividend

Metric LRCX Q Semiconductor Equipment & Materials median
Dividend yield 0.90% — 0.85%
Payout ratio 0.21 — 0.00

Size

Metric LRCX Q Semiconductor Equipment & Materials median
Market cap 390.42b 25.60b 4.63b

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