Lam Research Corp (LRCX)vsOnto Innovation Inc (ONTO)
LRCX
Lam Research Corp
$233.45
-2.26%
TECHNOLOGY · Cap: $299.99B
ONTO
Onto Innovation Inc
$221.04
+0.72%
TECHNOLOGY · Cap: $10.91B
Smart Verdict
WallStSmart Research — data-driven comparison
Lam Research Corp generates 1945% more annual revenue ($20.56B vs $1.01B). LRCX leads profitability with a 30.2% profit margin vs 13.6%. ONTO appears more attractively valued with a PEG of 1.13. LRCX earns a higher WallStSmart Score of 74/100 (B).
LRCX
Strong Buy74
out of 100
Grade: B
ONTO
Hold46
out of 100
Grade: D+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-2.4%
Fair Value
$227.92
Current Price
$233.45
$5.53 premium
Margin of Safety
-1072.5%
Fair Value
$18.97
Current Price
$221.04
$202.07 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Mega-cap, among the largest globally
Every $100 of equity generates 66 in profit
Keeps 30 of every $100 in revenue as profit
Strong operational efficiency at 33.9%
Safe zone — low bankruptcy risk
Revenue surging 22.1% year-over-year
Strong operational efficiency at 20.9%
Areas to Watch
Expensive relative to growth rate
Premium valuation, high expectations priced in
Trading at 28.8x book value
1.1% revenue growth
ROE of 6.8% — 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 30.2% and operating margin at 33.9%. Revenue growth of 22.1% demonstrates continued momentum.
Bull Case : ONTO
The strongest argument for ONTO centers on Operating Margin. PEG of 1.13 suggests the stock is reasonably priced for its growth.
Bear Case : LRCX
The primary concerns for LRCX are PEG Ratio, P/E Ratio, Price/Book. A P/E of 49.0x leaves little room for execution misses.
Bear Case : ONTO
The primary concerns for ONTO are Revenue Growth, Return on Equity, Piotroski F-Score. A P/E of 78.7x leaves little room for execution misses.
Key Dynamics to Monitor
LRCX profiles as a growth stock while ONTO is a value play — different risk/reward profiles.
LRCX carries more volatility with a beta of 1.79 — expect wider price swings.
LRCX is growing revenue faster at 22.1% — sustainability is the question.
LRCX generates stronger free cash flow (1.3B), providing more financial flexibility.
Bottom Line
LRCX scores higher overall (74/100 vs 46/100), backed by strong 30.2% margins and 22.1% 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.
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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