HPC vs Lam Research Which Performs Better?

High Performance Computing (HPC) and Lam Research are two distinct yet lucrative investment options in the tech sector. HPC companies are leading the way in developing powerful computing systems for a variety of industries, while Lam Research is a top player in the semiconductor manufacturing equipment market. Both offer potential for growth and profitability, but their performance can vary based on market trends and industry developments. Investors must carefully consider their financial goals and risk tolerance when deciding between HPC and Lam Research stocks.

HPC or Lam Research?

When comparing HPC and Lam Research, different investors may prioritize various metrics based on their investment strategies and goals. So, ask yourself what type of investor you are. This will guide you in determining which metrics are most important for your investment decision between HPC and Lam Research.

Dividend Investors:

Dividend investors look for stable and growing income streams, using dividend metrics to assess potential investments. A company's dividend yield essentially measures the size of its dividend relative to the total market value of the company. HPC has a dividend yield of -%, while Lam Research has a dividend yield of 3.49%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. HPC reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%. On the other hand, Lam Research reports a 5-year dividend growth of 10.89% year and a payout ratio of 25.87%.

Value Investors:

Value investors focus on financial metrics to determine a stock's intrinsic value compared to its market value. The Price-to-Earnings (P/E) Ratio links stock price to a company's earnings per share, with HPC P/E ratio at 9.64 and Lam Research's P/E ratio at 24.42. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. HPC P/B ratio is 0.22 while Lam Research's P/B ratio is 11.70.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, HPC has seen a 5-year revenue growth of 0.10%, while Lam Research's is 1.10%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with HPC's ROE at 2.21% and Lam Research's ROE at 48.80%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are HK$0.06 for HPC and $75.44 for Lam Research. Over the past year, HPC's prices ranged from HK$0.03 to HK$0.08, with a yearly change of 151.61%. Lam Research's prices fluctuated between $68.87 and $113.00, with a yearly change of 64.08%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.