Lam Research (NASDAQ:LRCX – Get Free Report) and Silvaco Group (NASDAQ:SVCO – Get Free Report) are both computer and technology companies, but which is the superior business? We will compare the two businesses based on the strength of their dividends, earnings, institutional ownership, risk, valuation, profitability and analyst recommendations.
Profitability
This table compares Lam Research and Silvaco Group’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Lam Research | 30.22% | 62.81% | 29.48% |
| Silvaco Group | -65.34% | -23.01% | -14.07% |
Risk and Volatility
Lam Research has a beta of 1.78, meaning that its share price is 78% more volatile than the S&P 500. Comparatively, Silvaco Group has a beta of -0.74, meaning that its share price is 174% less volatile than the S&P 500.
Valuation and Earnings
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Lam Research | $18.44 billion | 14.80 | $5.36 billion | $4.88 | 44.76 |
| Silvaco Group | $63.06 million | 3.58 | -$41.21 million | ($1.41) | -5.10 |
Lam Research has higher revenue and earnings than Silvaco Group. Silvaco Group is trading at a lower price-to-earnings ratio than Lam Research, indicating that it is currently the more affordable of the two stocks.
Insider and Institutional Ownership
84.6% of Lam Research shares are held by institutional investors. 0.3% of Lam Research shares are held by insiders. Comparatively, 47.9% of Silvaco Group shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.
Analyst Recommendations
This is a summary of current recommendations and price targets for Lam Research and Silvaco Group, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Lam Research | 0 | 7 | 27 | 1 | 2.83 |
| Silvaco Group | 1 | 0 | 3 | 1 | 2.80 |
Lam Research presently has a consensus price target of $245.35, indicating a potential upside of 12.32%. Silvaco Group has a consensus price target of $9.33, indicating a potential upside of 29.81%. Given Silvaco Group’s higher probable upside, analysts plainly believe Silvaco Group is more favorable than Lam Research.
Summary
Lam Research beats Silvaco Group on 12 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 Silvaco Group
Silvaco Group Inc. is a provider of TCAD, EDA software and SIP solutions which enable semiconductor design and AI through software and innovation. The company’s solutions are used for process and device development across display, power devices, automotive, memory, high performance compute, photonics, internet of things and 5G/6G mobile markets for complex SoC design. Silvaco Group Inc. is headquartered in Santa Clara, California.
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