Lam Research Corp (LRCX)vsWestern Digital Corporation (WDC)
LRCX
Lam Research Corp
$228.36
-2.41%
TECHNOLOGY · Cap: $286.83B
WDC
Western Digital Corporation
$293.10
-7.52%
TECHNOLOGY · Cap: $100.21B
Smart Verdict
WallStSmart Research — data-driven comparison
Lam Research Corp generates 92% more annual revenue ($20.56B vs $10.73B). WDC leads profitability with a 35.6% profit margin vs 30.2%. WDC appears more attractively valued with a PEG of 0.69. LRCX earns a higher WallStSmart Score of 74/100 (B).
LRCX
Strong Buy74
out of 100
Grade: B
WDC
Buy55
out of 100
Grade: C
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-0.4%
Fair Value
$227.45
Current Price
$228.36
$0.91 premium
Margin of Safety
-311.2%
Fair Value
$66.57
Current Price
$293.10
$226.53 premium
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
Every $100 of equity generates 41 in profit
Keeps 36 of every $100 in revenue as profit
Large-cap with strong market position
Growing faster than its price suggests
Areas to Watch
Expensive relative to growth rate
Premium valuation, high expectations priced in
Trading at 28.2x book value
Moderate valuation
Trading at 14.0x book value
Revenue declined 41.0%
Earnings declined 95.9%
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 : WDC
The strongest argument for WDC centers on Return on Equity, Profit Margin, Market Cap. Profitability is solid with margins at 35.6% and operating margin at 15.4%. PEG of 0.69 suggests the stock is reasonably priced for its growth.
Bear Case : LRCX
The primary concerns for LRCX are PEG Ratio, P/E Ratio, Price/Book. A P/E of 47.0x leaves little room for execution misses.
Bear Case : WDC
The primary concerns for WDC are P/E Ratio, Price/Book, Revenue Growth.
Key Dynamics to Monitor
LRCX profiles as a growth stock while WDC is a declining play — different risk/reward profiles.
WDC carries more volatility with a beta of 1.85 — expect wider price swings.
LRCX is growing revenue faster at 22.1% — sustainability is the question.
LRCX generates stronger free cash flow (1.3B), providing more financial flexibility.
Bottom Line
LRCX scores higher overall (74/100 vs 55/100), backed by strong 30.2% margins and 22.1% 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.
Western Digital Corporation
TECHNOLOGY · COMPUTER HARDWARE · USA
Western Digital Corporation (WDC, commonly known as Western Digital or WD) is an American computer hard disk drive manufacturer and data storage company, headquartered in San Jose, California. It designs, manufactures and sells data technology products, including storage devices, data center systems and cloud storage services.
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