CLS vs. LRCX: A Head-to-Head Stock Comparison
UpdatedHere’s a clear look at CLS and LRCX, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.
Company Overview
LRCX’s market capitalization of 115.17 billion USD is significantly greater than CLS’s 15.49 billion USD, highlighting its more substantial market valuation.
With betas of 1.64 for CLS and 1.66 for LRCX, both stocks show similar sensitivity to overall market movements.
| Symbol | CLS | LRCX |
|---|---|---|
| Company Name | Celestica Inc. | Lam Research Corporation |
| Country | CA | US |
| Sector | Technology | Technology |
| Industry | Hardware, Equipment & Parts | Semiconductors |
| CEO | Mr. Robert Andrew Mionis | Mr. Timothy M. Archer |
| Price | 134.74 USD | 90.038 USD |
| Market Cap | 15.49 billion USD | 115.17 billion USD |
| Beta | 1.64 | 1.66 |
| Exchange | NYSE | NASDAQ |
| IPO Date | June 30, 1998 | May 4, 1984 |
| ADR | No | No |
Historical Performance
This chart compares the performance of CLS and LRCX over the past year by tracking the growth of an initial $10,000 investment in each (starting one year ago).
Data is adjusted for dividends and splits.
Profitability
Return on Equity
CLS
23.32%
Hardware, Equipment & Parts Industry
- Max
- 38.64%
- Q3
- 10.85%
- Median
- 4.18%
- Q1
- -28.42%
- Min
- -80.25%
CLS’s Return on Equity of 23.32% is in the upper quartile for the Hardware, Equipment & Parts industry, signaling a highly effective use of shareholder capital to drive profitability compared to most of its peers.
LRCX
52.74%
Semiconductors Industry
- Max
- 52.74%
- Q3
- 13.07%
- Median
- 3.57%
- Q1
- -15.35%
- Min
- -57.53%
LRCX’s Return on Equity of 52.74% is in the upper quartile for the Semiconductors industry, signaling a highly effective use of shareholder capital to drive profitability compared to most of its peers.
Return on Invested Capital
CLS
16.79%
Hardware, Equipment & Parts Industry
- Max
- 25.09%
- Q3
- 7.64%
- Median
- 3.93%
- Q1
- -15.38%
- Min
- -43.63%
CLS’s Return on Invested Capital of 16.79% is in the upper quartile for the Hardware, Equipment & Parts industry, signifying a highly effective use of its capital to generate profits when compared to its peers.
LRCX
30.37%
Semiconductors Industry
- Max
- 36.26%
- Q3
- 9.13%
- Median
- 2.19%
- Q1
- -12.00%
- Min
- -33.58%
LRCX’s Return on Invested Capital of 30.37% is in the upper quartile for the Semiconductors industry, signifying a highly effective use of its capital to generate profits when compared to its peers.
Net Profit Margin
CLS
4.09%
Hardware, Equipment & Parts Industry
- Max
- 42.40%
- Q3
- 8.67%
- Median
- 2.09%
- Q1
- -30.99%
- Min
- -80.83%
CLS’s Net Profit Margin of 4.09% is within the central 50% of the Hardware, Equipment & Parts industry, indicating its ability to convert sales into profit is typical for the sector.
LRCX
27.19%
Semiconductors Industry
- Max
- 76.59%
- Q3
- 18.08%
- Median
- 2.74%
- Q1
- -31.69%
- Min
- -86.90%
LRCX’s Net Profit Margin of 27.19% is in the upper quartile for the Semiconductors industry, signifying strong profitability and more effective cost management than most of its peers.
Operating Profit Margin
CLS
6.01%
Hardware, Equipment & Parts Industry
- Max
- 51.32%
- Q3
- 12.50%
- Median
- 5.48%
- Q1
- -27.94%
- Min
- -86.75%
CLS’s Operating Profit Margin of 6.01% hovers around the midpoint for the Hardware, Equipment & Parts industry, indicating that its efficiency in managing core business operations is characteristic of the sector.
LRCX
30.91%
Semiconductors Industry
- Max
- 61.81%
- Q3
- 19.54%
- Median
- 3.04%
- Q1
- -23.21%
- Min
- -81.19%
LRCX’s Operating Profit Margin of 30.91% is in the upper quartile for the Semiconductors industry. This signals a strong ability to translate revenue into operating profit, outperforming most of its competitors in core business efficiency.
Profitability at a Glance
| Symbol | CLS | LRCX |
|---|---|---|
| Return on Equity (TTM) | 23.32% | 52.74% |
| Return on Assets (TTM) | 7.07% | 23.33% |
| Return on Invested Capital (TTM) | 16.79% | 30.37% |
| Net Profit Margin (TTM) | 4.09% | 27.19% |
| Operating Profit Margin (TTM) | 6.01% | 30.91% |
| Gross Profit Margin (TTM) | 10.59% | 48.08% |
Financial Strength
Current Ratio
CLS
1.43
Hardware, Equipment & Parts Industry
- Max
- 4.71
- Q3
- 3.50
- Median
- 2.47
- Q1
- 1.67
- Min
- 0.51
CLS’s Current Ratio of 1.43 falls into the lower quartile for the Hardware, Equipment & Parts industry. This indicates a tighter liquidity situation and a more constrained capacity to handle short-term debt than many of its competitors.
LRCX
2.45
Semiconductors Industry
- Max
- 9.43
- Q3
- 5.27
- Median
- 3.11
- Q1
- 2.23
- Min
- 0.05
LRCX’s Current Ratio of 2.45 aligns with the median group of the Semiconductors industry, indicating that its short-term liquidity is in line with its sector peers.
Debt-to-Equity Ratio
CLS
0.60
Hardware, Equipment & Parts Industry
- Max
- 1.36
- Q3
- 0.70
- Median
- 0.34
- Q1
- 0.11
- Min
- 0.00
CLS’s Debt-to-Equity Ratio of 0.60 is typical for the Hardware, Equipment & Parts industry, indicating its use of leverage is in line with the sector norm. This suggests a balanced approach to its capital structure.
LRCX
0.47
Semiconductors Industry
- Max
- 1.08
- Q3
- 0.48
- Median
- 0.21
- Q1
- 0.05
- Min
- 0.00
LRCX’s Debt-to-Equity Ratio of 0.47 is typical for the Semiconductors industry, indicating its use of leverage is in line with the sector norm. This suggests a balanced approach to its capital structure.
Interest Coverage Ratio
CLS
12.39
Hardware, Equipment & Parts Industry
- Max
- 19.79
- Q3
- 11.91
- Median
- 4.87
- Q1
- 1.73
- Min
- -13.16
CLS’s Interest Coverage Ratio of 12.39 is in the upper quartile for the Hardware, Equipment & Parts industry, signifying a strong and healthy capacity to meet its interest payments out of operating profits.
LRCX
29.12
Semiconductors Industry
- Max
- 36.25
- Q3
- 23.04
- Median
- 2.34
- Q1
- -13.81
- Min
- -39.42
LRCX’s Interest Coverage Ratio of 29.12 is in the upper quartile for the Semiconductors industry, signifying a strong and healthy capacity to meet its interest payments out of operating profits.
Financial Strength at a Glance
| Symbol | CLS | LRCX |
|---|---|---|
| Current Ratio (TTM) | 1.43 | 2.45 |
| Quick Ratio (TTM) | 0.85 | 1.64 |
| Debt-to-Equity Ratio (TTM) | 0.60 | 0.47 |
| Debt-to-Asset Ratio (TTM) | 0.16 | 0.22 |
| Net Debt-to-EBITDA Ratio (TTM) | 0.88 | -0.17 |
| Interest Coverage Ratio (TTM) | 12.39 | 29.12 |
Growth
The following charts compare key year-over-year (YoY) growth metrics for CLS and LRCX. These metrics are based on the companies’ annual financial reports.
Revenue Growth (YoY)
EPS Growth (YoY)
Free Cash Flow Growth (YoY)
Dividend
Dividend Yield
CLS
0.00%
Hardware, Equipment & Parts Industry
- Max
- 0.96%
- Q3
- 0.39%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
CLS currently does not pay a dividend, resulting in a yield of 0%. This is a common strategy for growth-focused companies that prioritize reinvesting all earnings back into the business, though it may be less typical in mature, income-oriented sectors.
LRCX
1.02%
Semiconductors Industry
- Max
- 1.68%
- Q3
- 0.72%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
LRCX’s Dividend Yield of 1.02% is in the upper quartile for the Semiconductors industry, offering a more attractive income stream than most of its peers and signaling a strong commitment to shareholder returns.
Dividend Payout Ratio
CLS
0.00%
Hardware, Equipment & Parts Industry
- Max
- 13.83%
- Q3
- 8.03%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
CLS has a Dividend Payout Ratio of 0%, indicating it does not currently pay a dividend. This strategy is common for growth-oriented companies that reinvest all profits back into the business.
LRCX
23.95%
Semiconductors Industry
- Max
- 43.75%
- Q3
- 19.56%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
LRCX’s payout ratio of 23.95% is in the upper quartile for the Semiconductors industry. This indicates a strong commitment to shareholder returns, but also suggests that a smaller portion of earnings is being retained for reinvestment compared to its peers.
Dividend at a Glance
| Symbol | CLS | LRCX |
|---|---|---|
| Dividend Yield (TTM) | 0.00% | 1.02% |
| Dividend Payout Ratio (TTM) | 0.00% | 23.95% |
Valuation
Price-to-Earnings Ratio
CLS
37.86
Hardware, Equipment & Parts Industry
- Max
- 95.07
- Q3
- 57.90
- Median
- 37.14
- Q1
- 24.86
- Min
- 11.53
CLS’s P/E Ratio of 37.86 is within the middle range for the Hardware, Equipment & Parts industry. This suggests its valuation is in line with the sector average, representing neither a significant premium nor a discount compared to its peers.
LRCX
24.81
Semiconductors Industry
- Max
- 61.62
- Q3
- 37.34
- Median
- 25.54
- Q1
- 16.45
- Min
- 0.78
LRCX’s P/E Ratio of 24.81 is within the middle range for the Semiconductors industry. This suggests its valuation is in line with the sector average, representing neither a significant premium nor a discount compared to its peers.
Forward P/E to Growth Ratio
CLS
1.84
Hardware, Equipment & Parts Industry
- Max
- 5.46
- Q3
- 3.10
- Median
- 1.89
- Q1
- 0.89
- Min
- 0.00
The Forward PEG Ratio is not a primary valuation metric for companies in the Hardware, Equipment & Parts industry.
LRCX
2.07
Semiconductors Industry
- Max
- 4.49
- Q3
- 2.19
- Median
- 1.01
- Q1
- 0.27
- Min
- 0.00
The Forward PEG Ratio is not a primary valuation metric for companies in the Semiconductors industry.
Price-to-Sales Ratio
CLS
1.54
Hardware, Equipment & Parts Industry
- Max
- 9.15
- Q3
- 5.41
- Median
- 2.41
- Q1
- 1.47
- Min
- 0.02
CLS’s P/S Ratio of 1.54 aligns with the market consensus for the Hardware, Equipment & Parts industry. This suggests its valuation, based on sales, is seen as standard and is on par with its competitors.
LRCX
6.72
Semiconductors Industry
- Max
- 20.55
- Q3
- 10.00
- Median
- 4.00
- Q1
- 1.80
- Min
- 0.18
LRCX’s P/S Ratio of 6.72 aligns with the market consensus for the Semiconductors industry. This suggests its valuation, based on sales, is seen as standard and is on par with its competitors.
Price-to-Book Ratio
CLS
10.03
Hardware, Equipment & Parts Industry
- Max
- 8.21
- Q3
- 4.70
- Median
- 3.06
- Q1
- 2.08
- Min
- 0.01
At 10.03, CLS’s P/B Ratio is at an extreme premium to the Hardware, Equipment & Parts industry. This signifies that the market‘s valuation is heavily reliant on future potential, rather than its current net asset value, which can be a high-risk proposition.
LRCX
12.15
Semiconductors Industry
- Max
- 12.51
- Q3
- 5.97
- Median
- 2.72
- Q1
- 1.39
- Min
- 0.05
LRCX’s P/B Ratio of 12.15 is in the upper tier for the Semiconductors industry. This indicates that investors are paying a high price relative to the company‘s net assets, which hinges on its ability to generate superior profits to justify the high valuation.
Valuation at a Glance
| Symbol | CLS | LRCX |
|---|---|---|
| Price-to-Earnings Ratio (P/E, TTM) | 37.86 | 24.81 |
| Forward PEG Ratio (TTM) | 1.84 | 2.07 |
| Price-to-Sales Ratio (P/S, TTM) | 1.54 | 6.72 |
| Price-to-Book Ratio (P/B, TTM) | 10.03 | 12.15 |
| Price-to-Free Cash Flow Ratio (P/FCF, TTM) | 43.94 | 28.14 |
| EV-to-EBITDA (TTM) | 22.26 | 19.60 |
| EV-to-Sales (TTM) | 1.60 | 6.66 |