TranSwitch (OTCMKTS:TXCCQ – Get Free Report) and Lam Research (NASDAQ:LRCX – Get Free Report) are both computer and technology companies, but which is the better investment? We will compare the two businesses based on the strength of their profitability, valuation, institutional ownership, risk, dividends, earnings and analyst recommendations.
Analyst Ratings
This is a summary of current ratings and recommmendations for TranSwitch and Lam Research, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| TranSwitch | 0 | 0 | 0 | 0 | 0.00 |
| Lam Research | 0 | 7 | 27 | 0 | 2.79 |
Lam Research has a consensus price target of $303.30, indicating a potential downside of 4.36%. Given TranSwitch’s higher possible upside, analysts clearly believe TranSwitch is more favorable than Lam Research.
Insider and Institutional Ownership
Risk and Volatility
TranSwitch has a beta of 23.82, suggesting that its share price is 2,282% more volatile than the S&P 500. Comparatively, Lam Research has a beta of 1.85, suggesting that its share price is 85% more volatile than the S&P 500.
Valuation & Earnings
This table compares TranSwitch and Lam Research”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| TranSwitch | N/A | N/A | N/A | N/A | N/A |
| Lam Research | $18.44 billion | 21.51 | $5.36 billion | $5.30 | 59.83 |
Lam Research has higher revenue and earnings than TranSwitch.
Profitability
This table compares TranSwitch and Lam Research’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| TranSwitch | N/A | N/A | N/A |
| Lam Research | 30.94% | 66.21% | 31.61% |
Summary
Lam Research beats TranSwitch on 7 of the 10 factors compared between the two stocks.
About TranSwitch
TranSwitch Corporation, together with its subsidiaries, designs, develops, and supplies integrated circuit and intellectual property solutions that provide functionality for voice, data, and video communications equipment for the customer premises and network infrastructure markets. The company provides integrated multi-core network processor system-on-a-chip (SoC) solutions for fixed, 3G and 4G mobile, VoIP, and multimedia applications. It offers converged network infrastructure products, including infrastructure VoIP processors for wire-line and wireless carrier equipment; access VoIP processors; and EoS/EoPDH mappers and framers for carriers to transport data traffic over SONET, SDH, and PDH networks. The company also offers broadband customer premises equipment, such as connectivity solutions comprising HDMI, DisplayPort, MHL, HDP, Ethernet IP cores, and MHDP transceivers for consumer electronics, home network equipment, and industrial and automotive applications; and multi-service SoCs for customer premises equipment that support telephone voice, fax, and routing functionality over broadband access networks. TranSwitch Corporation sells its products to public network system original equipment manufacturers (OEMs), WAN and LAN equipment OEMs, Internet-oriented OEMs, and communications test and performance measurement equipment OEMs; and government, universities, and private laboratories. The company offers its products directly in North America, Taiwan, China, Japan, Korea, and Europe, as well as through a network of distributors in North America, Asia, and Europe. TranSwitch Corporation was founded in 1988 and is headquartered in Shelton, Connecticut. On November 21, 2013, TranSwitch Corporation filed a voluntary petition for liquidation under Chapter 7 in the U.S. Bankruptcy Court for the District of Connecticut.
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.
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