KLA Corporation (KLAC)vsLam Research Corp (LRCX)
KLAC
KLA Corporation
$198.11
+2.53%
TECHNOLOGY · Cap: $255.31B
LRCX
Lam Research Corp
$311.35
+1.82%
TECHNOLOGY · Cap: $397.58B
Smart Verdict
WallStSmart Research — data-driven comparison
Lam Research Corp generates 71% more annual revenue ($23.23B vs $13.58B). KLAC leads profitability with a 35.6% profit margin vs 31.3%. LRCX appears more attractively valued with a PEG of 1.38. LRCX earns a higher WallStSmart Score of 78/100 (B+).
KLAC
Strong Buy68
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
+12.9%
Fair Value
$352.89
Current Price
$311.35
$41.54 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Mega-cap, among the largest globally
Every $100 of equity generates 80 in profit
Keeps 36 of every $100 in revenue as profit
Strong operational efficiency at 42.5%
15.2% revenue growth
Mega-cap, among the largest globally
Every $100 of equity generates 58 in profit
Keeps 31 of every $100 in revenue as profit
Strong operational efficiency at 37.4%
Revenue surging 30.0% year-over-year
Conservative balance sheet, low leverage
Areas to Watch
Expensive relative to growth rate
Elevated debt levels
Premium valuation, high expectations priced in
Trading at 44.4x book value
Premium valuation, high expectations priced in
Trading at 36.8x 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 35.6% and operating margin at 42.5%. Revenue growth of 15.2% 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 31.3% and operating margin at 37.4%. Revenue growth of 30.0% demonstrates continued momentum.
Bear Case : KLAC
The primary concerns for KLAC are PEG Ratio, Debt/Equity, P/E Ratio. A P/E of 50.0x leaves little room for execution misses.
Bear Case : LRCX
The primary concerns for LRCX are P/E Ratio, Price/Book. A P/E of 54.8x leaves little room for execution misses.
Key Dynamics to Monitor
LRCX carries more volatility with a beta of 1.86 — expect wider price swings.
LRCX is growing revenue faster at 30.0% — sustainability is the question.
LRCX generates stronger free cash flow (822M), providing more financial flexibility.
Monitor SEMICONDUCTOR EQUIPMENT & MATERIALS industry trends, competitive dynamics, and regulatory changes.
Bottom Line
LRCX scores higher overall (78/100 vs 68/100), backed by strong 31.3% margins and 30.0% 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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