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 $347.2B against $25.0B — 13.9× the size. Qnity Electronics, Inc. trades at the lower P/E: 41.2× against 45.6×. 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 45.59 41.20 45.03
P/S 14.26 4.64 4.64
P/B 26.56 3.20 3.22
Price to free cash flow 67.73 29.09 48.18
EV/EBITDA 38.12 19.18 33.11
EV/Sales 14.18 5.23 5.52
Earnings yield 2.19% 2.43% 1.41%
Free cash flow yield 1.48% 3.44% 1.67%

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%) (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 0.30 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 0.42% — 0.42%
Payout ratio 0.19 — 0.19

Size

Metric LRCX Q Semiconductor Equipment & Materials median
Market cap 347.22b 25.02b 3.80b

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