KLA Corporation (KLAC)vsLam Research Corp (LRCX)
KLAC
KLA Corporation
$138.49
+6.69%
TECHNOLOGY · Cap: $205.75B
LRCX
Lam Research Corp
$200.44
+8.23%
TECHNOLOGY · Cap: $299.23B
Smart Verdict
WallStSmart Research — data-driven comparison
Lam Research Corp generates 80% more annual revenue ($26.13B vs $14.51B). KLAC leads profitability with a 36.2% profit margin vs 32.3%. LRCX appears more attractively valued with a PEG of 1.04. LRCX earns a higher WallStSmart Score of 78/100 (B+).
KLAC
Strong Buy74
out of 100
Grade: B
LRCX
Strong Buy78
out of 100
Grade: B+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Intrinsic value data unavailable for KLAC.
Margin of Safety
+39.2%
Fair Value
$393.39
Current Price
$200.44
$192.95 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Mega-cap, among the largest globally
Every $100 of equity generates 81 in profit
Keeps 36 of every $100 in revenue as profit
Strong operational efficiency at 45.0%
Revenue surging 28.9% year-over-year
Earnings expanding 39.3% YoY
Mega-cap, among the largest globally
Every $100 of equity generates 61 in profit
Keeps 32 of every $100 in revenue as profit
Strong operational efficiency at 40.0%
Revenue surging 54.4% year-over-year
Earnings expanding 76.6% YoY
Areas to Watch
Expensive relative to growth rate
Premium valuation, high expectations priced in
Trading at 27.7x book value
Premium valuation, high expectations priced in
Trading at 18.0x book value
Comparative Analysis Report
WallStSmart ResearchBull Case : KLAC
The strongest argument for KLAC centers on Market Cap, Return on Equity, Profit Margin. Profitability is solid with margins at 36.2% and operating margin at 45.0%. Revenue growth of 28.9% demonstrates continued momentum.
Bull Case : LRCX
The strongest argument for LRCX centers on Market Cap, Return on Equity, Profit Margin. Profitability is solid with margins at 32.3% and operating margin at 40.0%. Revenue growth of 54.4% demonstrates continued momentum.
Bear Case : KLAC
The primary concerns for KLAC are PEG Ratio, P/E Ratio, Price/Book.
Bear Case : LRCX
The primary concerns for LRCX are P/E Ratio, Price/Book.
Key Dynamics to Monitor
LRCX carries more volatility with a beta of 1.85 — expect wider price swings.
LRCX is growing revenue faster at 54.4% — sustainability is the question.
LRCX generates stronger free cash flow (3.2B), providing more financial flexibility.
Monitor SEMICONDUCTOR EQUIPMENT & MATERIALS industry trends, competitive dynamics, and regulatory changes.
Bottom Line
LRCX scores higher overall (78/100 vs 74/100), backed by strong 32.3% margins and 54.4% revenue growth. Both earn "Strong Buy" and "Strong Buy" ratings respectively — the choice depends on your investment horizon and risk tolerance.
This analysis is generated from publicly available financial data. Not financial advice.
KLA Corporation
TECHNOLOGY · SEMICONDUCTOR EQUIPMENT & MATERIALS · USA
KLA Corporation is a capital equipment company based in Milpitas, California. It supplies process control and yield management systems for the semiconductor industry and other related nanoelectronics industries. The company's products and services are intended for all phases of wafer, reticle, integrated circuit (IC) and packaging production, from research and development to final volume manufacturing.
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.
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