Contrasting indie Semiconductor (NASDAQ:INDI) and Lam Research (NASDAQ:LRCX)

indie Semiconductor (NASDAQ:INDI) and Lam Research (NASDAQ:LRCX) are both computer and technology companies, but which is the better investment? We will compare the two companies based on the strength of their institutional ownership, valuation, risk, profitability, dividends, earnings and analyst recommendations.

Valuation & Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
indie Semiconductor	$216.68 million	4.51	-$132.60 million	($0.84)	-5.38
Lam Research	$18.44 billion	6.83	$5.36 billion	$4.16	23.92

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
indie Semiconductor	-71.98%	-28.43%	-14.40%
Lam Research	29.07%	58.17%	26.43%

Analyst Ratings

This is a summary of recent recommendations and price targets for indie Semiconductor and Lam Research, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
indie Semiconductor	0	1	5	0	2.83
Lam Research	0	7	19	1	2.78

indie Semiconductor currently has a consensus price target of $5.90, suggesting a potential upside of 30.53%. Lam Research has a consensus price target of $107.0870, suggesting a potential upside of 7.61%. Given indie Semiconductor’s stronger consensus rating and higher possible upside, equities analysts plainly believe indie Semiconductor is more favorable than Lam Research.

Insider & Institutional Ownership

67.7% of indie Semiconductor shares are held by institutional investors. Comparatively, 84.6% of Lam Research shares are held by institutional investors. 5.6% of indie Semiconductor shares are held by insiders. Comparatively, 0.3% of Lam Research shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Risk & Volatility

indie Semiconductor has a beta of 2.23, indicating that its stock price is 123% more volatile than the S&P 500. Comparatively, Lam Research has a beta of 1.65, indicating that its stock price is 65% more volatile than the S&P 500.

Summary

Lam Research beats indie Semiconductor on 11 of the 15 factors compared between the two stocks.

About indie Semiconductor

indie Semiconductor, Inc. provides automotive semiconductors and software solutions for advanced driver assistance systems, autonomous vehicle, in-cabin, connected car, and electrification applications in the United States, South America, rest of North America, Greater China, South Korea, rest of the Asia Pacific, and Europe. It offers ultrasonic sensors for parking assist and systems; radar sensors for audio assistance and reverse information; front cameras for vehicle detection, collision avoidance, and sign reading; and side/inside cameras for blind spot and lane change assist, and driver behavior monitoring. The company also provides LiDAR for distance, speed, and obstacle detection, collision avoidance, and emergency brake system; and long range RADAR for audio assistance, obstacle detection, and ACC stop and go. In addition, it designs and manufactures photonic components on various technology platforms, including fiber Bragg gratings, low-noise lasers, athermal and tunable packaging, photonic integration, and low-noise and high-speed electronics. The company was founded in 2007 and is headquartered in Aliso Viejo, California.

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.