Lam Research Corp (LRCX)vsOnto Innovation Inc (ONTO)
LRCX
Lam Research Corp
$298.22
+0.07%
TECHNOLOGY · Cap: $373.17B
ONTO
Onto Innovation Inc
$281.26
+4.59%
TECHNOLOGY · Cap: $17.18B
Smart Verdict
WallStSmart Research — data-driven comparison
Lam Research Corp generates 1974% more annual revenue ($23.23B vs $1.12B). LRCX leads profitability with a 31.3% profit margin vs 11.8%. ONTO appears more attractively valued with a PEG of 0.76. LRCX earns a higher WallStSmart Score of 78/100 (B+).
LRCX
Strong Buy78
out of 100
Grade: B+
ONTO
Strong Buy66
out of 100
Grade: B-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+15.2%
Fair Value
$351.66
Current Price
$298.22
$53.44 discount
Intrinsic value data unavailable for ONTO.
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
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
Safe zone — low bankruptcy risk
Revenue surging 35.3% year-over-year
Earnings expanding 75.4% YoY
Safe zone — low bankruptcy risk
Growing faster than its price suggests
Strong operational efficiency at 23.0%
Areas to Watch
Premium valuation, high expectations priced in
Trading at 29.9x book value
ROE of 6.9% — below average capital efficiency
Weak financial health signals
Premium valuation, high expectations priced in
Comparative Analysis Report
WallStSmart ResearchBull 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.
Bull Case : ONTO
The strongest argument for ONTO centers on Revenue Growth, EPS Growth, Altman Z-Score. Revenue growth of 35.3% demonstrates continued momentum. PEG of 0.76 suggests the stock is reasonably priced for its growth.
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.
Bear Case : ONTO
The primary concerns for ONTO are Return on Equity, Piotroski F-Score, P/E Ratio. A P/E of 104.9x leaves little room for execution misses.
Key Dynamics to Monitor
LRCX carries more volatility with a beta of 1.86 — expect wider price swings.
ONTO is growing revenue faster at 35.3% — 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 66/100), 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.
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.
Onto Innovation Inc
TECHNOLOGY · SEMICONDUCTOR EQUIPMENT & MATERIALS · USA
Onto Innovation Inc. is dedicated to the design, development, manufacture and support of process control tools that perform macrodefect inspection and metrology, lithography systems, and process control analytical software worldwide. The company is headquartered in Wilmington, Massachusetts.
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