Lam Research Corp (LRCX)vsVisa Inc. Class A (V)
LRCX
Lam Research Corp
$233.45
-2.26%
TECHNOLOGY · Cap: $299.99B
V
Visa Inc. Class A
$304.91
+0.38%
FINANCIAL SERVICES · Cap: $585.66B
Smart Verdict
WallStSmart Research — data-driven comparison
Visa Inc. Class A generates 101% more annual revenue ($41.39B vs $20.56B). V leads profitability with a 50.2% profit margin vs 30.2%. 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
V
Strong Buy68
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
+17.4%
Fair Value
$369.26
Current Price
$304.91
$64.35 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 54 in profit
Keeps 50 of every $100 in revenue as profit
Strong operational efficiency at 68.3%
Generating 6.4B in free cash flow
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
Moderate valuation
Trading at 15.2x book value
Grey zone — moderate risk
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 : V
The strongest argument for V centers on Market Cap, Return on Equity, Profit Margin. Profitability is solid with margins at 50.2% and operating margin at 68.3%. Revenue growth of 14.6% 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 : V
The primary concerns for V are PEG Ratio, P/E Ratio, Price/Book.
Key Dynamics to Monitor
LRCX profiles as a growth stock while V is a mature 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.
V generates stronger free cash flow (6.4B), providing more financial flexibility.
Bottom Line
LRCX scores higher overall (74/100 vs 68/100), backed by strong 30.2% margins and 22.1% revenue growth. V offers better value entry with a 17.4% 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.
Visa Inc. Class A
FINANCIAL SERVICES · CREDIT SERVICES · USA
Visa Inc. is an American multinational financial services corporation headquartered in Foster City, California, United States. It facilitates electronic funds transfers throughout the world, most commonly through Visa-branded credit cards, debit cards and prepaid cards. Visa is one of the world's most valuable companies.
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