Lam Research Corporation (LRCX) and Xcerra Corporation (XCRA) Head to Head Survey

Lam Research Corporation (NASDAQ: LRCX) and Xcerra Corporation (NASDAQ:XCRA) are both computer and technology companies, but which is the superior stock? We will compare the two businesses based on the strength of their analyst recommendations, institutional ownership, dividends, risk, valuation, profitability and earnings.

Insider & Institutional Ownership

94.0% of Lam Research Corporation shares are owned by institutional investors. Comparatively, 84.7% of Xcerra Corporation shares are owned by institutional investors. 0.5% of Lam Research Corporation shares are owned by company insiders. Comparatively, 2.6% of Xcerra Corporation shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Risk and Volatility

Lam Research Corporation has a beta of 1.47, suggesting that its share price is 47% more volatile than the S&P 500. Comparatively, Xcerra Corporation has a beta of 1.6, suggesting that its share price is 60% more volatile than the S&P 500.

Dividends

Lam Research Corporation pays an annual dividend of $1.80 per share and has a dividend yield of 1.0%. Xcerra Corporation does not pay a dividend. Lam Research Corporation pays out 19.6% of its earnings in the form of a dividend.

Profitability

This table compares Lam Research Corporation and Xcerra Corporation’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Lam Research Corporation 21.19% 26.78% 14.96%
Xcerra Corporation 5.77% 9.08% 6.71%

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Lam Research Corporation and Xcerra Corporation, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Lam Research Corporation 0 3 17 0 2.85
Xcerra Corporation 0 5 0 0 2.00

Lam Research Corporation presently has a consensus price target of $179.00, suggesting a potential upside of 1.28%. Xcerra Corporation has a consensus price target of $10.25, suggesting a potential upside of 3.74%. Given Xcerra Corporation’s higher possible upside, analysts plainly believe Xcerra Corporation is more favorable than Lam Research Corporation.

Valuation and Earnings

This table compares Lam Research Corporation and Xcerra Corporation’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Lam Research Corporation $8.01 billion 3.58 $2.22 billion $9.20 19.21
Xcerra Corporation $390.77 million 1.38 $34.79 million $0.42 23.52

Lam Research Corporation has higher revenue and earnings than Xcerra Corporation. Lam Research Corporation is trading at a lower price-to-earnings ratio than Xcerra Corporation, indicating that it is currently the more affordable of the two stocks.

Summary

Lam Research Corporation beats Xcerra Corporation on 11 of the 16 factors compared between the two stocks.

Lam Research Corporation Company Profile

Lam Research Corporation is a supplier of wafer fabrication equipment and services to the semiconductor industry. The Company designs, manufactures, markets, refurbishes and services semiconductor processing systems that are used in the fabrication of integrated circuits (ICs). It operates through manufacturing and servicing of wafer processing semiconductor manufacturing equipment segment. Its products are designed to enable its customers build a range of devices that are used in a range of electronic products, including cell phones, tablets, computers, storage devices, and networking equipment. Its customer base includes semiconductor memory, foundry, and integrated device manufacturers (IDMs) that make products, such as dynamic random-access memory (DRAM), negative-AND (NAND) memory and logic devices. It offers a portfolio of products that are used in several areas of the semiconductor manufacturing process flow, including thin film deposition, plasma etch and single-wafer clean.

Xcerra Corporation Company Profile

Xcerra Corporation is a provider of test and handling capital equipment, interface products, test fixtures and related services to the semiconductor and electronics manufacturing industries. The Company operates through six segments: Semiconductor Test, Semiconductor Handlers, Contactors, PCB Test, Probes/Pins and Fixtures. The Semiconductor Test segment includes operations related to the design, manufacture and sale of automated test equipment for the semiconductor industry that is used to test system-on-a-chip, digital, analog and mixed signal integrated circuits. The Semiconductor Handlers segment includes operations related to the design, manufacture and sale of test handlers used in the testing of integrated circuits. The Contactors segment includes operations related to the design, manufacture and sale of test contactors. The PCB test segment includes operations related to design, manufacture and sale of equipment used in the testing of bare and loaded printed circuit boards.

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