Analyzing Lam Research (NASDAQ:LRCX) and TOYO (NASDAQ:TOYO)

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

Profitability

This table compares Lam Research and TOYO’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%
TOYO	N/A	N/A	N/A

Analyst Recommendations

This is a breakdown of recent ratings and price targets for Lam Research and TOYO, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Lam Research	0	5	26	1	2.88
TOYO	0	2	2	0	2.50

Lam Research currently has a consensus price target of $364.59, indicating a potential upside of 9.19%. TOYO has a consensus price target of $14.00, indicating a potential upside of 212.50%. Given TOYO’s higher possible upside, analysts clearly believe TOYO is more favorable than Lam Research.

Volatility & Risk

Lam Research has a beta of 1.85, meaning that its share price is 85% more volatile than the S&P 500. Comparatively, TOYO has a beta of 1.42, meaning that its share price is 42% more volatile than the S&P 500.

Insider and Institutional Ownership

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

Valuation and Earnings

This table compares Lam Research and TOYO”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Lam Research	$23.23 billion	17.98	$7.27 billion	$5.76	57.97
TOYO	$427.38 million	0.40	$39.66 million	$1.20	3.73

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

Summary

Lam Research beats TOYO on 13 of the 14 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 TOYO

TOYO Co. Ltd. engages in the design, manufacture, and sale of solar cells and modules. It is involved in integrating the upstream production of wafer and silicon, midstream production of solar cell, downstream production of photovoltaic (PV) modules, and potentially other stages of the solar power supply chain. The company was founded on November 8, 2022 and is headquartered in Tokyo, Japan.