Aehr Test Systems (AEHR)vsLam Research Corp (LRCX)
AEHR
Aehr Test Systems
$116.58
+6.83%
TECHNOLOGY · Cap: $2.94B
LRCX
Lam Research Corp
$303.28
+6.03%
TECHNOLOGY · Cap: $418.20B
Smart Verdict
WallStSmart Research — data-driven comparison
Lam Research Corp generates 47810% more annual revenue ($21.68B vs $45.26M). LRCX leads profitability with a 30.9% profit margin vs -25.2%. AEHR appears more attractively valued with a PEG of 0.90. LRCX earns a higher WallStSmart Score of 74/100 (B).
AEHR
Avoid28
out of 100
Grade: F
LRCX
Strong Buy74
out of 100
Grade: B
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Intrinsic value data unavailable for AEHR.
Margin of Safety
+1.7%
Fair Value
$329.99
Current Price
$303.28
$26.71 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Conservative balance sheet, low leverage
Safe zone — low bankruptcy risk
Growing faster than its price suggests
Mega-cap, among the largest globally
Every $100 of equity generates 63 in profit
Keeps 31 of every $100 in revenue as profit
Strong operational efficiency at 35.0%
Safe zone — low bankruptcy risk
Revenue surging 23.8% year-over-year
Areas to Watch
Weak financial health signals
Trading at 26.0x book value
ROE of -8.2% — below average capital efficiency
Revenue declined 43.7%
Expensive relative to growth rate
Premium valuation, high expectations priced in
Trading at 35.8x book value
Comparative Analysis Report
WallStSmart ResearchBull Case : AEHR
The strongest argument for AEHR centers on Debt/Equity, Altman Z-Score, PEG Ratio. PEG of 0.90 suggests the stock is reasonably priced for its growth.
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.
Bear Case : AEHR
The primary concerns for AEHR are Piotroski F-Score, Price/Book, Return on Equity.
Bear Case : LRCX
The primary concerns for LRCX are PEG Ratio, P/E Ratio, Price/Book. A P/E of 63.3x leaves little room for execution misses.
Key Dynamics to Monitor
AEHR profiles as a turnaround stock while LRCX is a growth play — different risk/reward profiles.
AEHR carries more volatility with a beta of 3.27 — expect wider price swings.
LRCX is growing revenue faster at 23.8% — sustainability is the question.
LRCX generates stronger free cash flow (810M), providing more financial flexibility.
Bottom Line
LRCX scores higher overall (74/100 vs 28/100), backed by strong 30.9% margins and 23.8% revenue growth. Both earn "Strong Buy" and "Avoid" ratings respectively — the choice depends on your investment horizon and risk tolerance.
This analysis is generated from publicly available financial data. Not financial advice.
Aehr Test Systems
TECHNOLOGY · SEMICONDUCTOR EQUIPMENT & MATERIALS · USA
Aehr Test Systems primarily designs, designs, manufactures and sells test and burn equipment for use in the semiconductor industry in the United States, Asia and Europe. The company is headquartered in Fremont, California.
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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