WallStSmart

Aehr Test Systems (AEHR)vsLam Research Corp (LRCX)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Lam Research Corp generates 46364% more annual revenue ($23.23B vs $50.00M). LRCX leads profitability with a 31.3% profit margin vs -14.2%. AEHR appears more attractively valued with a PEG of 0.90. LRCX earns a higher WallStSmart Score of 78/100 (B+).

AEHR

Hold

38

out of 100

Grade: F

Growth: 4.7Profit: 2.0Value: 6.0Quality: 7.3
Piotroski: 2/9

LRCX

Strong Buy

78

out of 100

Grade: B+

Growth: 9.3Profit: 10.0Value: 5.3Quality: 8.5
Piotroski: 6/9Altman Z: 5.40
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

Intrinsic value data unavailable for AEHR.

LRCXUndervalued (+15.2%)

Margin of Safety

+15.2%

Fair Value

$351.66

Current Price

$298.22

$53.44 discount

UndervaluedFair: $351.66Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

AEHR3 strengths · Avg: 9.3/10
Revenue GrowthGrowth
33.7%10/10

Revenue surging 33.7% year-over-year

Debt/EquityHealth
0.0510/10

Conservative balance sheet, low leverage

PEG RatioValuation
0.908/10

Growing faster than its price suggests

LRCX6 strengths · Avg: 10.0/10
Market CapQuality
$373.17B10/10

Mega-cap, among the largest globally

Return on EquityProfitability
58.3%10/10

Every $100 of equity generates 58 in profit

Profit MarginProfitability
31.3%10/10

Keeps 31 of every $100 in revenue as profit

Operating MarginProfitability
37.4%10/10

Strong operational efficiency at 37.4%

Revenue GrowthGrowth
30.0%10/10

Revenue surging 30.0% year-over-year

Altman Z-ScoreHealth
5.4010/10

Safe zone — low bankruptcy risk

Areas to Watch

AEHR4 concerns · Avg: 2.8/10
Price/BookValuation
14.0x4/10

Trading at 14.0x book value

Piotroski F-ScoreQuality
2/93/10

Weak financial health signals

Return on EquityProfitability
-8.2%2/10

ROE of -8.2% — below average capital efficiency

EPS GrowthGrowth
-87.5%2/10

Earnings declined 87.5%

LRCX2 concerns · Avg: 2.0/10
P/E RatioValuation
51.9x2/10

Premium valuation, high expectations priced in

Price/BookValuation
29.9x2/10

Trading at 29.9x book value

Comparative Analysis Report

WallStSmart Research

Bull Case : AEHR

The strongest argument for AEHR centers on Revenue Growth, Debt/Equity, PEG Ratio. Revenue growth of 33.7% demonstrates continued momentum. PEG of 0.90 suggests the stock is reasonably priced for its growth.

Bull Case : LRCX

The strongest argument for LRCX centers on Market Cap, Return on Equity, Profit Margin. Profitability is solid with margins at 31.3% and operating margin at 37.4%. Revenue growth of 30.0% demonstrates continued momentum.

Bear Case : AEHR

The primary concerns for AEHR are Price/Book, Piotroski F-Score, Return on Equity.

Bear Case : LRCX

The primary concerns for LRCX are P/E Ratio, Price/Book. A P/E of 51.9x leaves little room for execution misses.

Key Dynamics to Monitor

AEHR profiles as a hypergrowth stock while LRCX is a growth play — different risk/reward profiles.

AEHR carries more volatility with a beta of 3.07 — expect wider price swings.

AEHR is growing revenue faster at 33.7% — sustainability is the question.

LRCX generates stronger free cash flow (822M), providing more financial flexibility.

Bottom Line

LRCX scores higher overall (78/100 vs 38/100), backed by strong 31.3% margins and 30.0% revenue growth. Both earn "Strong Buy" and "Hold" ratings respectively — the choice depends on your investment horizon and risk tolerance.

This analysis is generated from publicly available financial data. Not financial advice.

Aehr Test Systems

TECHNOLOGY · SEMICONDUCTOR EQUIPMENT & MATERIALS · USA

Aehr Test Systems primarily designs, designs, manufactures and sells test and burn equipment for use in the semiconductor industry in the United States, Asia and Europe. The company is headquartered in Fremont, California.

Visit Website →

Lam Research Corp

TECHNOLOGY · SEMICONDUCTOR EQUIPMENT & MATERIALS · USA

Lam Research Corporation is an American corporation that engages in the design, manufacture, marketing, and service of semiconductor processing equipment used in the fabrication of integrated circuits. Its products are used primarily in front-end wafer processing, which involves the steps that create the active components of semiconductor devices (transistors, capacitors) and their wiring (interconnects). The company also builds equipment for back-end wafer-level packaging (WLP), and for related manufacturing markets such as for microelectromechanical systems (MEMS). The company is headquartered in Fremont, California, in the Silicon Valley.

Want to dig deeper into these stocks?