Critical Comparison: Milacron (MCRN) & Lam Research (LRCX)

Milacron (NYSE: MCRN) and Lam Research (NASDAQ:LRCX) are both industrial products companies, but which is the better business? We will contrast the two businesses based on the strength of their institutional ownership, dividends, analyst recommendations, profitability, earnings, valuation and risk.

Earnings and Valuation

This table compares Milacron and Lam Research’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Milacron $1.23 billion 1.10 $1.10 million $1.69 11.49
Lam Research $8.01 billion 4.08 $1.70 billion $9.98 20.13



Lam Research has higher revenue and earnings than Milacron. Milacron 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 Milacron and Lam Research’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Milacron 0.09% -62.36% 6.65%
Lam Research 17.60% 36.08% 20.19%

Dividends

Lam Research pays an annual dividend of $2.00 per share and has a dividend yield of 1.0%. Milacron does not pay a dividend. Lam Research pays out 20.0% of its earnings in the form of a dividend.

Insider and Institutional Ownership

90.4% of Lam Research shares are owned by institutional investors. 2.7% of Milacron shares are owned by insiders. Comparatively, 0.4% of Lam Research shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Volatility and Risk

Milacron has a beta of 0.62, suggesting that its share price is 38% less volatile than the S&P 500. Comparatively, Lam Research has a beta of 1.41, suggesting that its share price is 41% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of current ratings for Milacron and Lam Research, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Milacron 0 0 2 0 3.00
Lam Research 0 0 23 0 3.00

Milacron presently has a consensus target price of $23.50, suggesting a potential upside of 21.01%. Lam Research has a consensus target price of $246.55, suggesting a potential upside of 22.74%. Given Lam Research’s higher possible upside, analysts clearly believe Lam Research is more favorable than Milacron.

Summary

Lam Research beats Milacron on 13 of the 15 factors compared between the two stocks.

Milacron Company Profile

Milacron Holdings Corp. is engaged in the manufacture, distribution, and service of engineered and customized systems used in the plastic technology and processing industry. The Company operates through three segments: Advanced Plastic Processing Technologies (APPT), Melt Delivery and Control Systems (MDCS), and Fluid Technologies. The Company has a product portfolio that includes hot runner systems, injection molding, blow molding and extrusion equipment. It produces process control systems, mold bases and components, and maintenance, repair and operating (MRO) supplies and fluid technology. As of December 31, 2016, the Company’s products were sold in over 100 countries across six continents. Its customers include original equipment manufacturers (OEMs), molders and mold-makers. Its customer base covers a range of end-market applications, including packaging, automotive, medical, construction, consumer goods and electronics.

Lam Research Company Profile

Lam Research Corporation designs, manufactures, markets, refurbishes, and services semiconductor processing equipment used in the fabrication of integrated circuits worldwide. The company offers thin film deposition products, including SABRE electrochemical deposition products for copper damascene manufacturing; ALTUS systems to deposit conformal atomic layer films for tungsten metallization applications; VECTOR plasma-enhanced chemical vapor deposition (CVD) and atomic layer deposition systems to deposit oxides, nitrides, and carbides for hardmasks, multiple patterning films, anti-reflective layers, multi-layer stack films, and diffusion barriers; and Striker atomic layer deposition systems that deliver conformal dielectric films for spacer-based patterning and liner applications in various advanced memory and logic structures. Its thin film deposition products also comprise SPEED high-density plasma CVD products for applications in shallow trench isolation, pre-metal dielectrics, inter-layer dielectrics, inter-metal dielectrics, and passivation layers; and SOLA ultraviolet thermal processing products for treatment of back-end-of-line (BEOL) low-k dielectric films and front-end-of-line silicon nitride strained films. In addition, the company offers plasma etch products, such as Kiyo that provide solutions for conductor etch applications; Versys metal products, which offer a platform for BEOL metal etch processes; Flex for dielectric etch applications; and Syndion to address various through-silicon via etch and complementary image sensor etch applications. Further, it provides single-wafer clean products comprising EOS, Da Vinci, DV-Prime, and SP series products for wet etch and clean applications in wafer-level packaging; and Coronus plasma-based bevel clean products to enhance die yield by removing particles, residues, and unwanted films from the wafer's edge, as well as legacy products. The company was founded in 1980 and is headquartered in Fremont, California.

Receive News & Ratings for Milacron Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Milacron and related companies with MarketBeat.com's FREE daily email newsletter.



Leave a Reply