WallStSmart

Lam Research Corp (LRCX)vsQnity Electronics, Inc (Q)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Lam Research Corp generates 356% more annual revenue ($21.68B vs $4.75B). LRCX leads profitability with a 30.9% profit margin vs 14.6%. LRCX appears more attractively valued with a PEG of 1.49. LRCX earns a higher WallStSmart Score of 76/100 (B+).

LRCX

Strong Buy

76

out of 100

Grade: B+

Growth: 7.3Profit: 10.0Value: 6.0Quality: 7.8
Piotroski: 6/9Altman Z: 4.65

Q

Hold

49

out of 100

Grade: D+

Growth: 3.3Profit: 6.0Value: 3.3Quality: 5.0
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

LRCXUndervalued (+25.3%)

Margin of Safety

+25.3%

Fair Value

$343.70

Current Price

$256.72

$86.98 discount

UndervaluedFair: $343.70Overvalued
QOvervalued (-9.0%)

Margin of Safety

-9.0%

Fair Value

$105.09

Current Price

$143.33

$38.24 premium

UndervaluedFair: $105.09Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

LRCX6 strengths · Avg: 9.7/10
Market CapQuality
$311.08B10/10

Mega-cap, among the largest globally

Return on EquityProfitability
66.8%10/10

Every $100 of equity generates 67 in profit

Profit MarginProfitability
30.9%10/10

Keeps 31 of every $100 in revenue as profit

Operating MarginProfitability
35.0%10/10

Strong operational efficiency at 35.0%

Altman Z-ScoreHealth
4.6510/10

Safe zone — low bankruptcy risk

Revenue GrowthGrowth
23.8%8/10

Revenue surging 23.8% year-over-year

Q1 strengths · Avg: 8.0/10
Operating MarginProfitability
20.4%8/10

Strong operational efficiency at 20.4%

Areas to Watch

LRCX2 concerns · Avg: 2.0/10
P/E RatioValuation
46.9x2/10

Premium valuation, high expectations priced in

Price/BookValuation
31.7x2/10

Trading at 31.7x book value

Q4 concerns · Avg: 2.3/10
Return on EquityProfitability
8.0%3/10

ROE of 8.0% — below average capital efficiency

PEG RatioValuation
2.912/10

Expensive relative to growth rate

P/E RatioValuation
43.4x2/10

Premium valuation, high expectations priced in

EPS GrowthGrowth
-52.8%2/10

Earnings declined 52.8%

Comparative Analysis Report

WallStSmart Research

Bull Case : LRCX

The strongest argument for LRCX centers on Market Cap, Return on Equity, Profit Margin. Profitability is solid with margins at 30.9% and operating margin at 35.0%. Revenue growth of 23.8% demonstrates continued momentum.

Bull Case : Q

The strongest argument for Q centers on Operating Margin.

Bear Case : LRCX

The primary concerns for LRCX are P/E Ratio, Price/Book. A P/E of 46.9x leaves little room for execution misses.

Bear Case : Q

The primary concerns for Q are Return on Equity, PEG Ratio, P/E Ratio. A P/E of 43.4x leaves little room for execution misses.

Key Dynamics to Monitor

LRCX profiles as a growth stock while Q is a value play — different risk/reward profiles.

LRCX is growing revenue faster at 23.8% — sustainability is the question.

LRCX generates stronger free cash flow (810M), providing more financial flexibility.

Monitor SEMICONDUCTOR EQUIPMENT & MATERIALS industry trends, competitive dynamics, and regulatory changes.

Bottom Line

LRCX scores higher overall (76/100 vs 49/100), backed by strong 30.9% margins and 23.8% 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.

Qnity Electronics, Inc

TECHNOLOGY · SEMICONDUCTOR EQUIPMENT & MATERIALS · USA

IQVIA Holdings Inc. provides integrated information and technology-enabled healthcare services in the Americas, Europe, Africa, and Asia-Pacific. The company is headquartered in Durham, North Carolina.

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