Lam Research Corp (LRCX)vsWaters Corporation (WAT)
LRCX
Lam Research Corp
$294.05
+2.63%
TECHNOLOGY · Cap: $358.31B
WAT
Waters Corporation
$355.13
+1.32%
HEALTHCARE · Cap: $34.41B
Smart Verdict
WallStSmart Research — data-driven comparison
Lam Research Corp generates 475% more annual revenue ($21.68B vs $3.77B). LRCX leads profitability with a 30.9% profit margin vs 11.9%. WAT appears more attractively valued with a PEG of 1.52. LRCX earns a higher WallStSmart Score of 74/100 (B).
LRCX
Strong Buy74
out of 100
Grade: B
WAT
Buy52
out of 100
Grade: C-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+16.5%
Fair Value
$343.11
Current Price
$294.05
$49.06 discount
Margin of Safety
-63.1%
Fair Value
$201.83
Current Price
$355.13
$153.30 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Mega-cap, among the largest globally
Every $100 of equity generates 67 in profit
Keeps 31 of every $100 in revenue as profit
Strong operational efficiency at 35.0%
Safe zone — low bankruptcy risk
Revenue surging 23.8% year-over-year
Revenue surging 91.5% year-over-year
Safe zone — low bankruptcy risk
Areas to Watch
Expensive relative to growth rate
Premium valuation, high expectations priced in
Trading at 34.8x book value
Expensive relative to growth rate
Trading at 8.3x book value
ROE of 5.2% — 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 30.9% and operating margin at 35.0%. Revenue growth of 23.8% demonstrates continued momentum.
Bull Case : WAT
The strongest argument for WAT centers on Revenue Growth, Altman Z-Score. Revenue growth of 91.5% demonstrates continued momentum.
Bear Case : LRCX
The primary concerns for LRCX are PEG Ratio, P/E Ratio, Price/Book. A P/E of 54.1x leaves little room for execution misses.
Bear Case : WAT
The primary concerns for WAT are PEG Ratio, Price/Book, Return on Equity. A P/E of 44.6x leaves little room for execution misses.
Key Dynamics to Monitor
LRCX carries more volatility with a beta of 1.82 — expect wider price swings.
WAT is growing revenue faster at 91.5% — sustainability is the question.
LRCX generates stronger free cash flow (810M), providing more financial flexibility.
Monitor SEMICONDUCTOR EQUIPMENT & MATERIALS industry trends, competitive dynamics, and regulatory changes.
Bottom Line
LRCX scores higher overall (74/100 vs 52/100), backed by strong 30.9% margins and 23.8% revenue growth. Both earn "Strong Buy" and "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.
Waters Corporation
HEALTHCARE · DIAGNOSTICS & RESEARCH · USA
Waters Corporation is a publicly traded Analytical Laboratory instrument and software company headquartered in Milford, Massachusetts.
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