Lam Research Corp (LRCX)vsMicrosoft Corporation (MSFT)
LRCX
Lam Research Corp
$298.22
+0.07%
TECHNOLOGY · Cap: $373.17B
MSFT
Microsoft Corporation
$495.63
+0.65%
TECHNOLOGY · Cap: $3.68T
Smart Verdict
WallStSmart Research — data-driven comparison
Microsoft Corporation generates 1328% more annual revenue ($331.84B vs $23.23B). MSFT leads profitability with a 40.3% profit margin vs 31.3%. LRCX appears more attractively valued with a PEG of 1.39. LRCX earns a higher WallStSmart Score of 78/100 (B+).
LRCX
Strong Buy78
out of 100
Grade: B+
MSFT
Strong Buy72
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 MSFT.
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
Mega-cap, among the largest globally
Every $100 of equity generates 30 in profit
Keeps 40 of every $100 in revenue as profit
Strong operational efficiency at 45.1%
Generating 19.6B in free cash flow
Conservative balance sheet, low leverage
Areas to Watch
Premium valuation, high expectations priced in
Trading at 29.9x book value
Expensive relative to growth rate
Moderate valuation
Trading at 8.3x book value
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 : MSFT
The strongest argument for MSFT centers on Market Cap, Return on Equity, Profit Margin. Profitability is solid with margins at 40.3% and operating margin at 45.1%. Revenue growth of 17.7% demonstrates continued momentum.
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 : MSFT
The primary concerns for MSFT are PEG Ratio, P/E Ratio, Price/Book.
Key Dynamics to Monitor
LRCX carries more volatility with a beta of 1.86 — expect wider price swings.
LRCX is growing revenue faster at 30.0% — sustainability is the question.
MSFT generates stronger free cash flow (19.6B), providing more financial flexibility.
Monitor SEMICONDUCTOR EQUIPMENT & MATERIALS industry trends, competitive dynamics, and regulatory changes.
Bottom Line
LRCX scores higher overall (78/100 vs 72/100), 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.
Microsoft Corporation
TECHNOLOGY · SOFTWARE - INFRASTRUCTURE · USA
Microsoft Corporation is an American multinational technology company which produces computer software, consumer electronics, personal computers, and related services. Its best known software products are the Microsoft Windows line of operating systems, the Microsoft Office suite, and the Internet Explorer and Edge web browsers. Its flagship hardware products are the Xbox video game consoles and the Microsoft Surface lineup of touchscreen personal computers. Microsoft ranked No. 21 in the 2020 Fortune 500 rankings of the largest United States corporations by total revenue; it was the world's largest software maker by revenue as of 2016. It is considered one of the Big Five companies in the U.S. information technology industry, along with Google, Apple, Amazon, and Facebook.
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