Comprehensive Stock Comparison
Compare Lam Research Corporation (LRCX) vs Broadcom Inc. (AVGO) Stock
Analyze side-by-side fundamentals, valuation, growth, and profitability to decide which stock is the better buy.
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Quick Verdict
| Category | Winner | Why |
|---|---|---|
| Growth | AVGO | 23.9% revenue growth vs LRCX's 23.7% |
| Value | LRCX | PEG 1.96 vs 2.23 |
| Quality / Margins | AVGO | 36.2% net margin vs LRCX's 30.2% |
| Stability / Safety | AVGO | Beta 1.75 vs LRCX's 1.95 |
| Dividends | AVGO | 0.7% yield, 15-year raise streak, vs LRCX's 0.4% |
| Momentum (1Y) | LRCX | +206.1% vs AVGO's +61.4% |
| Efficiency (ROA) | LRCX | 29.0% ROA vs AVGO's 13.5%, ROIC 55.7% vs 14.9% |
Who Each Stock Is For
Income & stability
Growth exposure
Long-term compounding (10Y)
Sleep-well-at-night portfolio
Valuation efficiency (growth/$)
Defensive / Recession hedge
Business Model
What each company does and how it makes money
Lam Research is a leading manufacturer of semiconductor fabrication equipment used to produce integrated circuits. The company generates revenue primarily from selling wafer fabrication equipment — including etch, deposition, and cleaning systems — and related services, with equipment sales typically representing around 80% of total revenue. Its competitive advantage stems from deep process expertise in critical semiconductor manufacturing steps, particularly in etch and deposition technologies where it holds strong market positions.
Broadcom is a semiconductor and infrastructure software company that designs and supplies critical components for data centers, networking, and connectivity. It generates revenue primarily from semiconductor sales (~70%) and infrastructure software licensing (~30%), with key segments including wired infrastructure, wireless communications, and enterprise storage. The company's moat lies in its deep engineering expertise, extensive patent portfolio, and entrenched positions in mission-critical infrastructure where customers face high switching costs.
Revenue Breakdown by Segment
How each company's revenue is distributed across its business units
Financial Metrics Comparison
Side-by-side fundamentals across 2 stocks. BestLagging
Financial Scorecard
AVGO leads in 2 of 6 categories (Financial Metrics, Analyst Outlook). LRCX leads in 2 (Valuation Metrics, Profitability & Efficiency). 2 tied.
Financial Metrics (TTM)
AVGO is the larger business by revenue, generating $63.9B annually — 3.1x LRCX's $20.6B. AVGO is the more profitable business, keeping 36.2% of every revenue dollar as net income compared to LRCX's 30.2%.
| Metric | LRCXLam Research Corp… | AVGOBroadcom Inc. |
|---|---|---|
| RevenueTrailing 12 months | $20.6B | $63.9B |
| EBITDAEarnings before interest/tax | $7.3B | $34.2B |
| Net IncomeAfter-tax profit | $6.2B | $23.1B |
| Free Cash FlowCash after capex | $6.7B | $26.9B |
| Gross MarginGross profit ÷ Revenue | +49.8% | +67.8% |
| Operating MarginEBIT ÷ Revenue | +33.8% | +39.9% |
| Net MarginNet income ÷ Revenue | +30.2% | +36.2% |
| FCF MarginFCF ÷ Revenue | +32.4% | +42.1% |
| Rev. Growth (YoY)Latest quarter vs prior year | +22.1% | +22.0% |
| EPS Growth (YoY)Latest quarter vs prior year | +37.0% | +3.1% |
Valuation Metrics
At 56.4x trailing earnings, LRCX trades at a 16% valuation discount to AVGO's 67.0x P/E. Adjusting for growth (PEG ratio), LRCX offers better value at 2.52x vs AVGO's 4.80x — a lower PEG means you pay less per unit of expected earnings growth.
| Metric | LRCXLam Research Corp… | AVGOBroadcom Inc. |
|---|---|---|
| Market CapShares × price | $292.6B | $1.52T |
| Enterprise ValueMkt cap + debt − cash | $291.0B | $1.56T |
| Trailing P/EPrice ÷ TTM EPS | 56.36x | 66.99x |
| Forward P/EPrice ÷ next-FY EPS est. | 43.97x | 31.10x |
| PEG RatioP/E ÷ EPS growth rate | 2.52x | 4.80x |
| EV / EBITDAEnterprise value multiple | 46.28x | 44.06x |
| Price / SalesMarket cap ÷ Revenue | 15.87x | 23.71x |
| Price / BookPrice ÷ Book value/share | 30.60x | 19.08x |
| Price / FCFMarket cap ÷ FCF | 54.05x | 56.29x |
Profitability & Efficiency
LRCX delivers a 61.2% return on equity — every $100 of shareholder capital generates $61 in annual profit, vs $28 for AVGO. LRCX carries lower financial leverage with a 0.48x debt-to-equity ratio, signaling a more conservative balance sheet compared to AVGO's 0.80x. On the Piotroski fundamental quality scale (0–9), LRCX scores 8/9 vs AVGO's 4/9, reflecting strong financial health.
| Metric | LRCXLam Research Corp… | AVGOBroadcom Inc. |
|---|---|---|
| ROE (TTM)Return on equity | +61.2% | +28.4% |
| ROA (TTM)Return on assets | +29.0% | +13.5% |
| ROICReturn on invested capital | +55.7% | +14.9% |
| ROCEReturn on capital employed | +40.4% | +16.9% |
| Piotroski ScoreFundamental quality 0–9 | 8 | 4 |
| Debt / EquityFinancial leverage | 0.48x | 0.80x |
| Net DebtTotal debt minus cash | -$1.6B | $49.0B |
| Cash & Equiv.Liquid assets | $6.4B | $16.2B |
| Total DebtShort + long-term debt | $4.8B | $65.1B |
| Interest CoverageEBIT ÷ Interest expense | 41.06x | 8.09x |
Total Returns (with DRIP)
A $10,000 investment in AVGO five years ago would be worth $67,244 today (with dividends reinvested), compared to $39,693 for LRCX. Over the past 12 months, LRCX leads with a +206.1% total return vs AVGO's +61.4%. The 3-year compound annual growth rate (CAGR) favors AVGO at 76.4% vs LRCX's 69.5% — a key indicator of consistent wealth creation.
| Metric | LRCXLam Research Corp… | AVGOBroadcom Inc. |
|---|---|---|
| YTD ReturnYear-to-date | +26.4% | -8.1% |
| 1-Year ReturnPast 12 months | +206.1% | +61.4% |
| 3-Year ReturnCumulative with dividends | +386.6% | +448.6% |
| 5-Year ReturnCumulative with dividends | +296.9% | +572.4% |
| 10-Year ReturnCumulative with dividends | +3164.9% | +2389.2% |
| CAGR (3Y)Annualised 3-year return | +69.5% | +76.4% |
Risk & Volatility
AVGO is the less volatile stock with a 1.75 beta — it tends to amplify market swings less than LRCX's 1.95 beta. A beta below 1.0 means the stock typically moves less than the S&P 500. LRCX currently trades 91.1% from its 52-week high vs AVGO's 77.1% drawdown — a narrower gap to the peak suggests stronger recent price momentum.
| Metric | LRCXLam Research Corp… | AVGOBroadcom Inc. |
|---|---|---|
| Beta (5Y)Sensitivity to S&P 500 | 1.95x | 1.75x |
| 52-Week HighHighest price in past year | $256.68 | $414.61 |
| 52-Week LowLowest price in past year | $56.32 | $138.10 |
| % of 52W HighCurrent price vs 52-week peak | +91.1% | +77.1% |
| RSI (14)Momentum oscillator 0–100 | 55.7 | 44.2 |
| Avg Volume (50D)Average daily shares traded | 10.1M | 21.0M |
Analyst Outlook
Wall Street rates LRCX as "Buy" and AVGO as "Buy". Consensus price targets imply 38.9% upside for AVGO (target: $444) vs 14.4% for LRCX (target: $268). For income investors, AVGO offers the higher dividend yield at 0.72% vs LRCX's 0.38%.
| Metric | LRCXLam Research Corp… | AVGOBroadcom Inc. |
|---|---|---|
| Analyst RatingConsensus buy/hold/sell | Buy | Buy |
| Price TargetConsensus 12-month target | $267.50 | $443.72 |
| # AnalystsCovering analysts | 50 | 57 |
| Dividend YieldAnnual dividend ÷ price | +0.4% | +0.7% |
| Dividend StreakConsecutive years of raises | 11 | 15 |
| Dividend / ShareAnnual DPS | $0.89 | $2.30 |
| Buyback YieldShare repurchases ÷ mkt cap | +1.2% | +0.4% |
Historical Charts
Charts are rendered on first load. Hover for details.
Chart 1Total Return — 5 Years (Rebased to 100)
| Stock | Feb 20 | Feb 26 | Change |
|---|---|---|---|
| Lam Research Corpor… (LRCX) | 100 | 809.48 | +709.5% |
| Broadcom Inc. (AVGO) | 100 | 1,214.64 | +1114.6% |
Broadcom Inc. (AVGO) returned +572% over 5 years vs Lam Research Corpor… (LRCX)'s +297%. A $10,000 investment in AVGO 5 years ago would be worth $67,244 today (including dividends reinvested).
Chart 2Revenue Growth — 10 Years
| Stock | 2016 | 2025 | Change |
|---|---|---|---|
| Lam Research Corpor… (LRCX) | $5.9B | $18.4B | +213.2% |
| Broadcom Inc. (AVGO) | $13.2B | $63.9B | +382.5% |
Lam Research Corporation's revenue grew from $5.9B (2016) to $18.4B (2025) — a 13.5% CAGR. Broadcom Inc.'s revenue grew from $13.2B (2016) to $63.9B (2025) — a 19.1% CAGR.
Chart 3Net Margin Trend — 10 Years
| Stock | 2016 | 2025 | Change |
|---|---|---|---|
| Lam Research Corpor… (LRCX) | 15.5% | 29.1% | +87.2% |
| Broadcom Inc. (AVGO) | -13.1% | 36.2% | +375.6% |
Lam Research Corporation's net margin went from 16% (2016) to 29% (2025). Broadcom Inc.'s net margin went from -13% (2016) to 36% (2025).
Chart 4P/E Ratio History — 9 Years
| Stock | 2017 | 2025 | Change |
|---|---|---|---|
| Lam Research Corpor… (LRCX) | 20 | 41.2 | +106.0% |
| Broadcom Inc. (AVGO) | 61.2 | 72.6 | +18.6% |
Lam Research Corporation has traded in a 10x–41x P/E range over 9 years; current trailing P/E is ~56x. Broadcom Inc. has traded in a 9x–189x P/E range over 9 years; current trailing P/E is ~67x.
Chart 5EPS Growth — 10 Years
| Stock | 2016 | 2025 | Change |
|---|---|---|---|
| Lam Research Corpor… (LRCX) | 0.52 | 4.15 | +698.1% |
| Broadcom Inc. (AVGO) | -0.44 | 4.77 | +1184.1% |
Lam Research Corporation's EPS grew from $0.52 (2016) to $4.15 (2025) — a 26% CAGR. Broadcom Inc.'s EPS grew from $-0.44 (2016) to $4.77 (2025).
Chart 6Free Cash Flow — 5 Years
Lam Research Corporation generated $5B FCF in 2025 (+67% vs 2021). Broadcom Inc. generated $27B FCF in 2025 (+102% vs 2021).
LRCX vs AVGO: Frequently Asked Questions
9 questions · data-driven answers · updated daily
01Is LRCX or AVGO a better buy right now?
Lam Research Corporation (LRCX) offers the better valuation at 56.4x trailing P/E (44.0x forward), making it the more compelling value choice. Analysts rate Lam Research Corporation (LRCX) a "Buy" — based on 50 analyst ratings — the highest consensus in this comparison. The "better buy" depends entirely on your goals: growth investors should weight revenue trajectory, value investors should weight P/E and PEG, and income investors should weight dividend yield and streak.
02Which has the better valuation — LRCX or AVGO?
On trailing P/E, Lam Research Corporation (LRCX) is the cheapest at 56.4x versus Broadcom Inc. at 67.0x. On forward P/E, Broadcom Inc. is actually cheaper at 31.1x — notably different from the trailing picture, reflecting expected earnings growth. The PEG ratio (P/E divided by earnings growth rate) is the most growth-adjusted single valuation metric: Lam Research Corporation wins at 1.96x versus Broadcom Inc.'s 2.23x — a reasonable growth-adjusted valuation.
03Which is the better long-term investment — LRCX or AVGO?
Over the past 5 years, Broadcom Inc. (AVGO) delivered a total return of +572.4%, compared to +296.9% for Lam Research Corporation (LRCX). A $10,000 investment in AVGO five years ago would be worth approximately $67K today (assuming dividends reinvested). Over 10 years, the gap is even starker: LRCX returned +31.6% versus AVGO's +23.9%. Past returns do not guarantee future results, and the stock with the higher historical return may already have its best growth priced in.
04Which is safer — LRCX or AVGO?
By beta (market sensitivity over 5 years), Broadcom Inc. (AVGO) is the lower-risk stock at 1.75β versus Lam Research Corporation's 1.95β — meaning LRCX is approximately 11% more volatile than AVGO relative to the S&P 500. On balance sheet safety, Lam Research Corporation (LRCX) carries a lower debt/equity ratio of 48% versus 80% for Broadcom Inc. — giving it more financial flexibility in a downturn.
05Which has better profit margins — LRCX or AVGO?
Broadcom Inc. (AVGO) is the more profitable company, earning 36.2% net margin versus 29.1% for Lam Research Corporation — meaning it keeps 36.2% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: AVGO leads at 39.9% versus 32.0% for LRCX. At the gross margin level — before operating expenses — AVGO leads at 67.8%, reflecting greater pricing power or product mix advantage. Stronger margins indicate durable pricing power, lower cost of revenue, or higher mix of software/services. They are one of the clearest signs of business quality.
06Is LRCX or AVGO more undervalued right now?
The PEG ratio (forward P/E divided by expected earnings growth rate) is the most precise measure of undervaluation relative to growth potential. By this metric, Lam Research Corporation (LRCX) is the more undervalued stock at a PEG of 1.96x versus Broadcom Inc.'s 2.23x. Both stocks trade at elevated growth-adjusted valuations, so expected growth needs to materialise. On forward earnings alone, Broadcom Inc. (AVGO) trades at 31.1x forward P/E versus 44.0x for Lam Research Corporation — 12.9x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for AVGO: 38.9% to $443.72.
07Which pays a better dividend — LRCX or AVGO?
All stocks in this comparison pay dividends. Broadcom Inc. (AVGO) offers the highest yield at 0.7%, versus 0.4% for Lam Research Corporation (LRCX).
08Is LRCX or AVGO better for a retirement portfolio?
For long-horizon retirement investors, Broadcom Inc. (AVGO) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (0.7% yield). Lam Research Corporation (LRCX) carries a higher beta of 1.95 — meaning larger drawdowns in market downturns, which matters significantly when you cannot wait years for a recovery. Both have compounded well over 10 years (AVGO: +23.9%, LRCX: +31.6%), confirming both are viable long-term holds — but the lower-volatility option typically results in less emotional selling during corrections. Retirement portfolios generally favour predictability over maximum returns. Consult a financial advisor before making allocation decisions.
09What are the main differences between LRCX and AVGO?
Both stocks operate in the Technology sector, making this a peer-level intra-sector comparison — the same macro tailwinds and headwinds will affect both. AVGO pays a dividend while LRCX does not, making them suitable for different income and tax situations. These fundamental differences mean investors should not choose between them on a single metric — the "better stock" depends entirely on which of these characteristics aligns with your investment strategy.
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