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 $231.4B against $33.2B — 7.0× the size. Teradyne, Inc. trades at the lower P/E: 24.8× against 27.9×. Teradyne, Inc. grew revenue faster over the last twelve months: 74.9% against 33.4%. Lam Research Corporation has the higher net margin (32.3% vs 27.5%) and the higher return on invested capital (59.1% vs 31.2%). Both pay a dividend; Lam Research Corporation yields more (0.59% vs 0.23%). 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 27.86 24.76 33.70
P/S 9.00 6.79 4.22
P/B 16.91 9.20 2.94
Price to free cash flow 35.98 33.11 31.49
EV/EBITDA 22.89 19.32 22.64
EV/Sales 8.86 6.74 4.97
Earnings yield 3.59% 4.04% 2.02%
Free cash flow yield 2.78% 3.02% 2.27%

Profitability

Metric LRCX TER Semiconductor Equipment & Materials median
Gross margin 51.05% 59.32% 46.86%
Operating margin 36.95% 32.11% 12.02%
Net margin 32.34% 27.46% 10.16%
Free cash flow margin 25.02% 20.49% 6.73%
Return on equity 70.12% 42.87% 5.31%
Return on assets 35.02% 29.17% 4.10%
Return on invested capital 59.12% 31.16% 6.36%

Growth

Metric LRCX TER Semiconductor Equipment & Materials median
Revenue growth (TTM) 33.36% 74.88% 15.82%
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 0.27 0.00 0.09
Current ratio 2.48 2.08 3.56
Net debt to EBITDA (0.21) (0.16) (0.49)

Dividend

Metric LRCX TER Semiconductor Equipment & Materials median
Dividend yield 0.59% 0.23% 0.59%
Payout ratio 0.17 0.06 0.16

Size

Metric LRCX TER Semiconductor Equipment & Materials median
Market cap 231.35b 33.21b 3.04b

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