Lam Research Corp (LRCX)vsNetflix Inc (NFLX)
LRCX
Lam Research Corp
$233.45
-2.26%
TECHNOLOGY · Cap: $299.99B
NFLX
Netflix Inc
$92.28
+1.50%
COMMUNICATION SERVICES · Cap: $385.67B
Smart Verdict
WallStSmart Research — data-driven comparison
Netflix Inc generates 120% more annual revenue ($45.18B vs $20.56B). LRCX leads profitability with a 30.2% profit margin vs 24.3%. LRCX appears more attractively valued with a PEG of 1.64. LRCX earns a higher WallStSmart Score of 74/100 (B).
LRCX
Strong Buy74
out of 100
Grade: B
NFLX
Strong Buy70
out of 100
Grade: B
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
+22.1%
Fair Value
$118.40
Current Price
$92.28
$26.12 discount
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
Mega-cap, among the largest globally
Every $100 of equity generates 43 in profit
Safe zone — low bankruptcy risk
Keeps 24 of every $100 in revenue as profit
Strong operational efficiency at 24.5%
17.6% revenue growth
Areas to Watch
Expensive relative to growth rate
Premium valuation, high expectations priced in
Trading at 28.8x book value
Expensive relative to growth rate
Premium valuation, high expectations priced in
Trading at 14.6x 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 30.2% and operating margin at 33.9%. Revenue growth of 22.1% demonstrates continued momentum.
Bull Case : NFLX
The strongest argument for NFLX centers on Market Cap, Return on Equity, Altman Z-Score. Profitability is solid with margins at 24.3% and operating margin at 24.5%. Revenue growth of 17.6% demonstrates continued momentum.
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 : NFLX
The primary concerns for NFLX are PEG Ratio, P/E Ratio, Price/Book.
Key Dynamics to Monitor
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.
NFLX generates stronger free cash flow (1.9B), providing more financial flexibility.
Monitor SEMICONDUCTOR EQUIPMENT & MATERIALS industry trends, competitive dynamics, and regulatory changes.
Bottom Line
LRCX scores higher overall (74/100 vs 70/100), backed by strong 30.2% margins and 22.1% revenue growth. NFLX offers better value entry with a 22.1% margin of safety. 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.
Netflix Inc
COMMUNICATION SERVICES · ENTERTAINMENT · USA
Netflix, Inc. is an American over-the-top content platform and production company headquartered in Los Gatos, California. Netflix was founded in 1997 by Reed Hastings and Marc Randolph in Scotts Valley, California. The company's primary business is a subscription-based streaming service offering online streaming from a library of films and television series, including those produced in-house.
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