Analyzing Lam Research (NASDAQ:LRCX) and OriginClear (OTCMKTS:OCLN)

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

Risk and Volatility

OriginClear has a beta of 0.95, suggesting that its stock price is 5% less volatile than the S&P 500. Comparatively, Lam Research has a beta of 1.46, suggesting that its stock price is 46% more volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
OriginClear	-998.01%	N/A	-11.62%
Lam Research	26.02%	50.60%	22.33%

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
OriginClear	$30,000.00	226.57	-$11.63 million	N/A	N/A
Lam Research	$15.59 billion	6.29	$3.83 billion	$3.09	24.68

Lam Research has higher revenue and earnings than OriginClear.

Institutional & Insider Ownership

84.6% of Lam Research shares are held by institutional investors. 0.4% of OriginClear shares are held by insiders. Comparatively, 0.3% of Lam Research shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Analyst Ratings

This is a breakdown of recent ratings and price targets for OriginClear and Lam Research, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
OriginClear	0	0	0	0	0.00
Lam Research	0	7	13	0	2.65

Lam Research has a consensus price target of $97.24, indicating a potential upside of 27.51%. Given Lam Research’s stronger consensus rating and higher probable upside, analysts clearly believe Lam Research is more favorable than OriginClear.

Summary

Lam Research beats OriginClear on 10 of the 12 factors compared between the two stocks.

About OriginClear

OriginClear, Inc. provides water treatment solutions worldwide. The company designs and manufactures a line of water treatment systems for municipal, industrial, and pure water applications. It also offers a range of services, including maintenance contracts, retrofits, and replacement assistance; and rents equipment through contracts of varying duration, as well as provides prefabricated water transport and treatment systems. The company was formerly known as OriginOil, Inc. and changed its name to OriginClear, Inc. in April 2015. OriginClear, Inc. was incorporated in 2007 and is headquartered in Clearwater, Florida.

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.