Head-To-Head Comparison: Lam Research (NASDAQ:LRCX) and Enphase Energy (NASDAQ:ENPH)

Lam Research (NASDAQ:LRCX) and Enphase Energy (NASDAQ:ENPH) are both technology companies, but which is the superior stock? We will contrast the two companies based on the strength of their earnings, risk, analyst recommendations, dividends, valuation, profitability and institutional ownership.

Institutional and Insider Ownership

84.6% of Lam Research shares are owned by institutional investors. Comparatively, 72.1% of Enphase Energy shares are owned by institutional investors. 0.3% of Lam Research shares are owned by company insiders. Comparatively, 2.9% of Enphase Energy shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Volatility & Risk

Lam Research has a beta of 1.85, meaning that its stock price is 85% more volatile than the S&P 500. Comparatively, Enphase Energy has a beta of 1.65, meaning that its stock price is 65% more volatile than the S&P 500.

Earnings and Valuation

This table compares Lam Research and Enphase Energy”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Lam Research	$23.23 billion	16.98	$7.27 billion	$5.76	54.72
Enphase Energy	$1.47 billion	2.91	$172.13 million	$1.00	32.40

Lam Research has higher revenue and earnings than Enphase Energy. Enphase Energy 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 Lam Research and Enphase Energy’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Lam Research	31.27%	67.60%	33.48%
Enphase Energy	10.09%	13.31%	4.66%

Analyst Ratings

This is a summary of recent ratings and target prices for Lam Research and Enphase Energy, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Lam Research	0	5	26	1	2.88
Enphase Energy	3	11	9	0	2.26

Lam Research currently has a consensus target price of $361.81, indicating a potential upside of 14.78%. Enphase Energy has a consensus target price of $44.34, indicating a potential upside of 36.85%. Given Enphase Energy’s higher possible upside, analysts plainly believe Enphase Energy is more favorable than Lam Research.

Summary

Lam Research beats Enphase Energy on 13 of the 15 factors compared between the two stocks.

About Lam Research

Lam Research Corporation designs, manufactures, markets, refurbishes, and services semiconductor processing equipment used in the fabrication of integrated circuits. The company offers ALTUS systems to deposit conformal films for tungsten metallization applications; SABRE electrochemical deposition products for copper interconnect transition that offers copper damascene manufacturing; SOLA ultraviolet thermal processing products for film treatments; and VECTOR plasma-enhanced CVD ALD products. It also provides SPEED gapfill high-density plasma chemical vapor deposition products; and Striker single-wafer atomic layer deposition products for dielectric film solutions. In addition, the company offers Flex for dielectric etch applications; Kiyo for conductor etch applications; Syndion for through-silicon via etch applications; and Versys metal products for metal etch processes. Further, it provides Coronus bevel clean products to enhance die yield; Da Vinci, DV-Prime, EOS, and SP series products to address various wafer cleaning applications; and Metryx mass metrology systems for high precision in-line mass measurement in semiconductor wafer manufacturing. The company sells its products and services to semiconductors industry in the United States, China, Europe, Japan, Korea, Southeast Asia, Taiwan, and internationally. The company was incorporated in 1980 and is headquartered in Fremont, California.

About Enphase Energy

Enphase Energy, Inc., together with its subsidiaries, designs, develops, manufactures, and sells home energy solutions for the solar photovoltaic industry in the United States and internationally. The company offers semiconductor-based microinverter, which converts energy at the individual solar module level and combines with its proprietary networking and software technologies to provide energy monitoring and control. It also provides microinverter units and related accessories, an IQ gateway; IQ batteries; the cloud-based Enlighten monitoring service; storage solutions; and electric vehicle charging solutions, as well as design, proposal, permitting, and lead generation services. The company sells its solutions to solar distributors; and directly to large installers, original equipment manufacturers, strategic partners, and homeowners, as well as through its legacy product upgrade program or online store. Enphase Energy, Inc. was incorporated in 2006 and is headquartered in Fremont, California.