Head-To-Head Survey: Amtech Systems (ASYS) versus Lam Research (LRCX)

Amtech Systems (NASDAQ: ASYS) and Lam Research (NASDAQ:LRCX) are both computer and technology companies, but which is the better investment? We will contrast the two companies based on the strength of their institutional ownership, dividends, earnings, risk, analyst recommendations, valuation and profitability.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Amtech Systems and Lam Research, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Amtech Systems 0 1 2 0 2.67
Lam Research 0 1 21 0 2.95

Amtech Systems currently has a consensus target price of $13.50, suggesting a potential upside of 120.95%. Lam Research has a consensus target price of $255.85, suggesting a potential upside of 47.85%. Given Amtech Systems’ higher probable upside, equities analysts clearly believe Amtech Systems is more favorable than Lam Research.

Earnings & Valuation

This table compares Amtech Systems and Lam Research’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Amtech Systems $164.52 million 0.55 $9.13 million $0.68 8.99
Lam Research $8.01 billion 3.54 $1.70 billion $9.98 17.34

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

Profitability

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

Net Margins Return on Equity Return on Assets
Amtech Systems 9.52% 22.08% 11.63%
Lam Research 18.32% 41.13% 22.18%

Dividends

Lam Research pays an annual dividend of $4.40 per share and has a dividend yield of 2.5%. Amtech Systems does not pay a dividend. Lam Research pays out 44.1% of its earnings in the form of a dividend.

Risk & Volatility

Amtech Systems has a beta of 2.23, suggesting that its stock price is 123% more volatile than the S&P 500. Comparatively, Lam Research has a beta of 1.42, suggesting that its stock price is 42% more volatile than the S&P 500.

Institutional and Insider Ownership

66.5% of Amtech Systems shares are held by institutional investors. Comparatively, 88.3% of Lam Research shares are held by institutional investors. 20.6% of Amtech Systems shares are held by insiders. Comparatively, 0.4% of Lam Research shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Summary

Lam Research beats Amtech Systems on 12 of the 16 factors compared between the two stocks.

About Amtech Systems

Amtech Systems, Inc. manufactures and sells capital equipment and related consumables for use in fabricating solar cells, LED, and semiconductor devices in the United States, Asia, Europe, and internationally. It operates through Solar, Semiconductor, and Polishing segments. The Solar segment supplies thermal processing systems, including diffusion, plasma-enhanced chemical vapor deposition, and atomic layer deposition systems; and automation equipment comprising mass wafer transfer systems, sorters, long-boat transfer systems, load station elevators, buffers, and conveyers, as well as related parts and services. The Semiconductor segment designs, manufactures, sells, and services thermal processing equipment, including solder reflow equipment and related controls for use by various semiconductor manufacturers, as well as in electronics assembly for automotive and other industries. Its products include horizontal and vertical diffusion furnaces used to produce semiconductors, silicon wafers, and microelectromechanical systems, as well as lapping equipment, polishing templates and wafer insert carriers, mass wafer transfer systems, loaders, and sorters. The Polishing segment provides silicon wafers for semiconductor products; sapphire substrates for LED lighting and mobile devices; silicon carbide wafers for LED and power device applications; various glass and silica components for 3D image transmission; quartz and ceramic components for telecommunications devices; and medical device components and computer hard disks under the PR Hoffman brand name. The company sells its products through sales personnel, as well as a network of independent sales representatives and distributors. The company was formerly known as Quartz Engineering & Materials, Inc. and changed its name to Amtech Systems, Inc. in 1987. Amtech Systems, Inc. was founded in 1981 and is based in Tempe, Arizona.

About Lam Research

Lam Research Corporation designs, manufactures, markets, refurbishes, and services semiconductor processing equipment used in the fabrication of integrated circuits worldwide. The company offers thin film deposition products, including SABRE electrochemical deposition products for copper damascene manufacturing; ALTUS systems to deposit conformal atomic layer films for tungsten metallization applications; VECTOR plasma-enhanced chemical vapor deposition (CVD) and atomic layer deposition systems to deposit oxides, nitrides, and carbides for hardmasks, multiple patterning films, anti-reflective layers, multi-layer stack films, and diffusion barriers; and Striker atomic layer deposition systems that deliver conformal dielectric films for spacer-based patterning and liner applications in various advanced memory and logic structures. Its thin film deposition products also comprise SPEED high-density plasma CVD products for applications in shallow trench isolation, pre-metal dielectrics, inter-layer dielectrics, inter-metal dielectrics, and passivation layers; and SOLA ultraviolet thermal processing products for treatment of back-end-of-line (BEOL) low-k dielectric films and front-end-of-line silicon nitride strained films. In addition, the company offers plasma etch products, such as Kiyo that provide solutions for conductor etch applications; Versys metal products, which offer a platform for BEOL metal etch processes; Flex for dielectric etch applications; and Syndion to address various through-silicon via etch and complementary image sensor etch applications. Further, it provides single-wafer clean products comprising EOS, Da Vinci, DV-Prime, and SP series products for wet etch and clean applications in wafer-level packaging; and Coronus plasma-based bevel clean products to enhance die yield by removing particles, residues, and unwanted films from the wafer's edge, as well as legacy products. The company was founded in 1980 and is headquartered in Fremont, California.

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