WallStSmart

Lam Research Corp (LRCX)vsPetroleo Brasileiro Petrobras SA ADR (PBR)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Petroleo Brasileiro Petrobras SA ADR generates 2197% more annual revenue ($498.09B vs $21.68B). LRCX leads profitability with a 30.9% profit margin vs 21.6%. LRCX appears more attractively valued with a PEG of 1.85. LRCX earns a higher WallStSmart Score of 74/100 (B).

LRCX

Strong Buy

74

out of 100

Grade: B

Growth: 7.3Profit: 10.0Value: 4.0Quality: 8.5
Piotroski: 6/9Altman Z: 4.65

PBR

Strong Buy

66

out of 100

Grade: B-

Growth: 2.7Profit: 8.5Value: 7.3Quality: 5.5
Piotroski: 4/9Altman Z: 2.08
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

LRCXUndervalued (+1.7%)

Margin of Safety

+1.7%

Fair Value

$329.99

Current Price

$303.28

$26.71 discount

UndervaluedFair: $329.99Overvalued
PBRUndervalued (+89.6%)

Margin of Safety

+89.6%

Fair Value

$176.60

Current Price

$17.75

$158.85 discount

UndervaluedFair: $176.60Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

LRCX6 strengths · Avg: 9.7/10
Market CapQuality
$418.20B10/10

Mega-cap, among the largest globally

Return on EquityProfitability
63.4%10/10

Every $100 of equity generates 63 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

PBR6 strengths · Avg: 9.5/10
P/E RatioValuation
5.8x10/10

Attractively priced relative to earnings

Price/BookValuation
1.4x10/10

Reasonable price relative to book value

Operating MarginProfitability
32.0%10/10

Strong operational efficiency at 32.0%

Market CapQuality
$117.55B9/10

Large-cap with strong market position

Return on EquityProfitability
23.9%9/10

Every $100 of equity generates 24 in profit

Profit MarginProfitability
21.6%9/10

Keeps 22 of every $100 in revenue as profit

Areas to Watch

LRCX3 concerns · Avg: 2.7/10
PEG RatioValuation
1.854/10

Expensive relative to growth rate

P/E RatioValuation
63.3x2/10

Premium valuation, high expectations priced in

Price/BookValuation
35.8x2/10

Trading at 35.8x book value

PBR3 concerns · Avg: 2.7/10
Revenue GrowthGrowth
0.4%4/10

0.4% revenue growth

PEG RatioValuation
4.572/10

Expensive relative to growth rate

EPS GrowthGrowth
-7.2%2/10

Earnings declined 7.2%

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 : PBR

The strongest argument for PBR centers on P/E Ratio, Price/Book, Operating Margin. Profitability is solid with margins at 21.6% and operating margin at 32.0%.

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.

Bear Case : PBR

The primary concerns for PBR are Revenue Growth, PEG Ratio, EPS Growth.

Key Dynamics to Monitor

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

LRCX carries more volatility with a beta of 1.82 — expect wider price swings.

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

PBR generates stronger free cash flow (3.3B), providing more financial flexibility.

Bottom Line

LRCX scores higher overall (74/100 vs 66/100), backed by strong 30.9% margins and 23.8% revenue growth. PBR offers better value entry with a 89.6% 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.

Petroleo Brasileiro Petrobras SA ADR

ENERGY · OIL & GAS INTEGRATED · USA

Petrleo Brasileiro SA - Petrobras produces and sells oil and gas in Brazil and internationally. The company is headquartered in Rio de Janeiro, Brazil.

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