Lam Research (NASDAQ:LRCX – Get Free Report) and Quantum-Si (NASDAQ:QSI – Get Free Report) are both computer and technology companies, but which is the superior business? We will compare the two businesses based on the strength of their institutional ownership, dividends, valuation, risk, analyst recommendations, earnings and profitability.
Insider and Institutional Ownership
84.6% of Lam Research shares are owned by institutional investors. Comparatively, 39.9% of Quantum-Si shares are owned by institutional investors. 0.3% of Lam Research shares are owned by company insiders. Comparatively, 30.0% of Quantum-Si shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.
Valuation & Earnings
This table compares Lam Research and Quantum-Si”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Lam Research | $18.44 billion | 12.08 | $5.36 billion | $4.54 | 39.04 |
| Quantum-Si | $3.06 million | 91.20 | -$101.01 million | ($0.67) | -1.93 |
Lam Research has higher revenue and earnings than Quantum-Si. Quantum-Si is trading at a lower price-to-earnings ratio than Lam Research, indicating that it is currently the more affordable of the two stocks.
Analyst Ratings
This is a summary of recent ratings for Lam Research and Quantum-Si, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Lam Research | 0 | 10 | 26 | 0 | 2.72 |
| Quantum-Si | 1 | 1 | 2 | 0 | 2.25 |
Lam Research currently has a consensus target price of $161.21, suggesting a potential downside of 9.05%. Quantum-Si has a consensus target price of $3.60, suggesting a potential upside of 177.99%. Given Quantum-Si’s higher possible upside, analysts plainly believe Quantum-Si is more favorable than Lam Research.
Profitability
This table compares Lam Research and Quantum-Si’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Lam Research | 29.66% | 60.60% | 28.00% |
| Quantum-Si | -3,677.97% | -47.90% | -42.56% |
Risk and Volatility
Lam Research has a beta of 1.77, meaning that its stock price is 77% more volatile than the S&P 500. Comparatively, Quantum-Si has a beta of 2.96, meaning that its stock price is 196% more volatile than the S&P 500.
Summary
Lam Research beats Quantum-Si on 10 of the 14 factors compared between the two stocks.
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.
About Quantum-Si
Quantum-Si incorporated, a life sciences company, engages in the development of single-molecule detection platform to enable Next Generation Protein Sequencing (NGPS). The company's platform is comprised of the Platinum NGPS instrument; the Platinum Analysis Software service; and reagent kits and semiconductor chips for use with its instruments. It is used in protein identification, protein variants, antibody characterization, biomarker identification, and post translational modification analysis applications. The company was founded in 2013 is headquartered in Branford, Connecticut.
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