Financial Contrast: Mobix Labs (NASDAQ:MOBX) and Lam Research (NASDAQ:LRCX)

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

Earnings & Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Mobix Labs	$6.44 million	3.55	-$20.03 million	($1.10)	-0.34
Lam Research	$18.44 billion	11.74	$5.36 billion	$4.54	37.94

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

Volatility and Risk

Mobix Labs has a beta of -0.12, suggesting that its share price is 112% less volatile than the S&P 500. Comparatively, Lam Research has a beta of 1.77, suggesting that its share price is 77% more volatile than the S&P 500.

Institutional and Insider Ownership

8.6% of Mobix Labs shares are owned by institutional investors. Comparatively, 84.6% of Lam Research shares are owned by institutional investors. 32.0% of Mobix Labs shares are owned by insiders. Comparatively, 0.3% of Lam Research shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Analyst Recommendations

This is a summary of current ratings and target prices for Mobix Labs and Lam Research, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Mobix Labs	1	0	0	0	1.00
Lam Research	0	10	26	0	2.72

Lam Research has a consensus target price of $160.37, suggesting a potential downside of 6.91%. Given Lam Research’s stronger consensus rating and higher probable upside, analysts clearly believe Lam Research is more favorable than Mobix Labs.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Mobix Labs	-381.82%	-5,149.05%	-113.77%
Lam Research	29.66%	60.60%	28.00%

Summary

Lam Research beats Mobix Labs on 13 of the 14 factors compared between the two stocks.

About Mobix Labs

Mobix Labs, Inc., a fabless semiconductor company, provides wireless and connectivity solutions for next generation communication systems, including C-Band and mmWave 5G and high bandwidth cable applications. Its products include True5G chipset solutions; true xero active optical cables and related products designed to deliver fiber optic connectivity for a range of applications, including 5G infrastructure, autonomous vehicles, Pro A/V, AR/VR, remote medical systems, and others; electromagnetic interference filters deployed in aerospace, military, defense, medical, and healthcare products. The company was incorporated in 2020 and is based in Irvine, California. Mobix Labs, Inc. operates as a subsidiary of YDENS HOLDINGS, LLC.

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.