Lam Research vs Intel Which Performs Better?

Lam Research and Intel are both major players in the semiconductor industry, with a focus on cutting-edge technology and innovation. Lam Research specializes in manufacturing equipment used in the production of semiconductors, while Intel is a leading semiconductor chip maker. Both companies have seen strong growth in recent years, driven by increasing demand for their products in various industries. Investors looking to capitalize on the growth potential of the semiconductor industry may consider investing in either Lam Research or Intel stocks.

Lam Research or Intel?

When comparing Lam Research and Intel, 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 Lam Research and Intel.

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. Lam Research has a dividend yield of 3.4%, while Intel has a dividend yield of 1.8%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Lam Research reports a 5-year dividend growth of 10.89% year and a payout ratio of 25.87%. On the other hand, Intel reports a 5-year dividend growth of -9.22% year and a payout ratio of -13.32%.

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 Lam Research P/E ratio at 24.80 and Intel's P/E ratio at -5.60. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Lam Research P/B ratio is 11.88 while Intel's P/B ratio is 0.90.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Lam Research has seen a 5-year revenue growth of 1.10%, while Intel's is -0.16%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Lam Research's ROE at 48.80% and Intel's ROE at -14.98%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $75.67 for Lam Research and $20.73 for Intel. Over the past year, Lam Research's prices ranged from $68.87 to $113.00, with a yearly change of 64.08%. Intel's prices fluctuated between $18.51 and $51.28, with a yearly change of 177.04%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.