KLA Corporation (KLAC)vsLam Research Corp (LRCX)
KLAC
KLA Corporation
$1,482.36
+1.97%
TECHNOLOGY · Cap: $194.64B
LRCX
Lam Research Corp
$224.71
+4.13%
TECHNOLOGY · Cap: $275.57B
Smart Verdict
WallStSmart Research — data-driven comparison
Lam Research Corp generates 61% more annual revenue ($20.56B vs $12.74B). KLAC leads profitability with a 35.8% profit margin vs 30.2%. LRCX appears more attractively valued with a PEG of 1.53. LRCX earns a higher WallStSmart Score of 74/100 (B).
KLAC
Strong Buy69
out of 100
Grade: B-
LRCX
Strong Buy74
out of 100
Grade: B
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+7.9%
Fair Value
$1608.52
Current Price
$1482.36
$126.16 discount
Margin of Safety
+0.6%
Fair Value
$227.92
Current Price
$224.71
$3.21 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Every $100 of equity generates 101 in profit
Keeps 36 of every $100 in revenue as profit
Strong operational efficiency at 41.3%
Large-cap with strong market position
Earnings expanding 40.9% YoY
Generating 1.3B in free cash flow
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
Areas to Watch
Expensive relative to growth rate
Elevated debt levels
Premium valuation, high expectations priced in
Trading at 35.6x book value
Expensive relative to growth rate
Premium valuation, high expectations priced in
Trading at 27.7x book value
Comparative Analysis Report
WallStSmart ResearchBull Case : KLAC
The strongest argument for KLAC centers on Return on Equity, Profit Margin, Operating Margin. Profitability is solid with margins at 35.8% and operating margin at 41.3%.
Bull 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.
Bear Case : KLAC
The primary concerns for KLAC are PEG Ratio, Debt/Equity, P/E Ratio. A P/E of 43.1x leaves little room for execution misses.
Bear Case : LRCX
The primary concerns for LRCX are PEG Ratio, P/E Ratio, Price/Book. A P/E of 45.0x leaves little room for execution misses.
Key Dynamics to Monitor
KLAC profiles as a mature stock while LRCX is a growth 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 69/100), backed by strong 30.2% margins and 22.1% 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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