Lam Research (NASDAQ:LRCX) vs. Screen (OTCMKTS:DINRF) Financial Analysis

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

Risk & Volatility

Screen has a beta of 1.51, suggesting that its stock price is 51% more volatile than the S&P 500. Comparatively, Lam Research has a beta of 1.85, suggesting that its stock price is 85% more volatile than the S&P 500.

Valuation and Earnings

This table compares Screen and Lam Research”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Screen	$4.02 billion	2.03	$607.23 million	$4.10	21.10
Lam Research	$23.23 billion	16.05	$7.27 billion	$5.76	51.74

Lam Research has higher revenue and earnings than Screen. Screen 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 owned by institutional investors. 0.3% of Lam Research shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Screen	14.32%	19.03%	12.23%
Lam Research	31.27%	67.60%	33.48%

Analyst Recommendations

This is a breakdown of current recommendations and price targets for Screen and Lam Research, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Screen	1	0	0	0	1.00
Lam Research	0	5	26	1	2.88

Lam Research has a consensus target price of $361.81, suggesting a potential upside of 21.41%. Given Lam Research’s stronger consensus rating and higher possible upside, analysts plainly believe Lam Research is more favorable than Screen.

Summary

Lam Research beats Screen on 15 of the 15 factors compared between the two stocks.

About Screen

SCREEN Holdings Co., Ltd. develops, manufactures, sells, and maintains semiconductor production equipment in Japan, Taiwan, South Korea, China, the United States, Europe, and internationally. It operates in four segments: Semiconductor Production Equipment Business, Graphic Arts Equipment Business, Display Production Equipment and Coater Business, and PCB-Related Equipment Business. The company offers coat/develop trackers, wafer cleaning systems, annealing systems, measurement systems, inspection systems, and advanced packaging lithography equipment. It also provides coater systems, vacuum film deposition equipment, wet processors, dryers, heaters, exposures, and laminators/de-laminators. In addition, the company offers direct imaging systems, automatic optical inspection systems, automatic optical photomask inspection systems, and defect verification and repair systems; automatic final visual inspection systems; and setup stations and defect tabulation software. Further, it provides high-speed inkjet, label, wide format, CTP, network support, Hiragino font, and other workflow solutions; offset printing, digital book, manual, direct mail, transpromo, label production, package printing, display, and signage solutions; and artificial intelligence, text mining, augmented reality, image analysis, and congestion analysis solutions. Additionally, the company offers biosciences equipment; compact inkjet printing systems for tablets, UV inkjet printing systems for aluminum rolls, and inkjet printing systems for tablets; in-vehicle components for inspection and measurement; and lithium-ion rechargeable batteries and fuel cells. It also undertakes contract manufacturing and support, and intellectual property services related operations. The company was formerly known as Dainippon Screen Mfg. Co., Ltd. and changed its name to SCREEN Holdings Co., Ltd. in October 2014. SCREEN Holdings Co., Ltd. was founded in 1943 and is headquartered in Kyoto, Japan.

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.