Lam Research Corporation (LRCX) vs Teradyne, Inc. (TER)

Lam Research Corporation and Teradyne, Inc. are both Semiconductor Equipment & Materials companies. Lam Research Corporation is the larger, with a market value of $347.2B against $53.7B — 6.5× the size. Teradyne, Inc. trades at the lower P/E: 44.3× against 45.6×. Teradyne, Inc. grew revenue faster over the last twelve months: 57.9% against 26.0%. Lam Research Corporation has the higher net margin (31.3% vs 25.8%) and the higher return on invested capital (48.2% vs 27.0%). Both pay a dividend; Lam Research Corporation yields more (0.42% vs 0.16%). Across the 23 metrics below, Lam Research Corporation leads on 12 and Teradyne, Inc. on 11.

Valuation

Metric LRCX TER Semiconductor Equipment & Materials median
P/E 45.59 44.32 45.03
P/S 14.26 11.39 4.64
P/B 26.56 14.63 3.22
Price to free cash flow 67.73 63.54 48.18
EV/EBITDA 38.12 34.23 33.11
EV/Sales 14.18 11.36 5.52
Earnings yield 2.19% 2.26% 1.41%
Free cash flow yield 1.48% 1.57% 1.67%

Profitability

Metric LRCX TER Semiconductor Equipment & Materials median
Gross margin 50.47% 59.24% 43.95%
Operating margin 35.29% 30.23% 10.32%
Net margin 31.27% 25.77% 7.45%
Free cash flow margin 21.05% 17.92% 6.77%
Return on equity 65.07% 36.45% 4.78%
Return on assets 32.38% 26.48% 3.62%
Return on invested capital 48.23% 27.04% 6.10%

Growth

Metric LRCX TER Semiconductor Equipment & Materials median
Revenue growth (TTM) 26.02% 57.87% 14.60%
EPS growth (last fiscal year) 38.80% 4.52% (4.56%)
Revenue growth, 5-year CAGR 9.70% 0.44% 10.11%
Net income growth, 5-year CAGR 13.20% (6.71%) 0.00%

Health

Metric LRCX TER Semiconductor Equipment & Materials median
Debt to equity 0.30 0.00 0.09
Current ratio 2.63 2.12 3.66
Net debt to EBITDA (0.21) (0.16) (0.49)

Dividend

Metric LRCX TER Semiconductor Equipment & Materials median
Dividend yield 0.42% 0.16% 0.42%
Payout ratio 0.19 0.07 0.19

Size

Metric LRCX TER Semiconductor Equipment & Materials median
Market cap 347.22b 53.66b 3.80b

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