Lam Research Corp (LRCX)vsTeradyne Inc (TER)
LRCX
Lam Research Corp
$311.35
+1.82%
TECHNOLOGY · Cap: $397.58B
TER
Teradyne Inc
$379.31
-1.45%
TECHNOLOGY · Cap: $63.09B
Smart Verdict
WallStSmart Research — data-driven comparison
Lam Research Corp generates 420% more annual revenue ($23.23B vs $4.46B). LRCX leads profitability with a 31.3% profit margin vs 25.8%. TER appears more attractively valued with a PEG of 0.94. TER earns a higher WallStSmart Score of 79/100 (B+).
LRCX
Strong Buy78
out of 100
Grade: B+
TER
Strong Buy79
out of 100
Grade: B+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+12.9%
Fair Value
$352.89
Current Price
$311.35
$41.54 discount
Intrinsic value data unavailable for TER.
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
Conservative balance sheet, low leverage
Strong operational efficiency at 33.2%
Revenue surging 103.9% year-over-year
Earnings expanding 385.8% YoY
Conservative balance sheet, low leverage
Generating 506.4B in free cash flow
Large-cap with strong market position
Areas to Watch
Premium valuation, high expectations priced in
Trading at 36.8x book value
Trading at 17.3x book value
ROE of 0.0% — below average capital efficiency
Premium valuation, high expectations priced in
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 : TER
The strongest argument for TER centers on Operating Margin, Revenue Growth, EPS Growth. Profitability is solid with margins at 25.8% and operating margin at 33.2%. Revenue growth of 103.9% demonstrates continued momentum.
Bear Case : LRCX
The primary concerns for LRCX are P/E Ratio, Price/Book. A P/E of 54.8x leaves little room for execution misses.
Bear Case : TER
The primary concerns for TER are Price/Book, Return on Equity, P/E Ratio. A P/E of 55.4x leaves little room for execution misses.
Key Dynamics to Monitor
LRCX carries more volatility with a beta of 1.86 — expect wider price swings.
TER is growing revenue faster at 103.9% — sustainability is the question.
TER generates stronger free cash flow (506.4B), providing more financial flexibility.
Monitor SEMICONDUCTOR EQUIPMENT & MATERIALS industry trends, competitive dynamics, and regulatory changes.
Bottom Line
TER scores higher overall (79/100 vs 78/100), backed by strong 25.8% margins and 103.9% 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.
Teradyne Inc
TECHNOLOGY · SEMICONDUCTOR EQUIPMENT & MATERIALS · USA
Teradyne, Inc. is an American automatic test equipment (ATE) designer and manufacturer based in North Reading, Massachusetts.
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