AEIS vs LRCX

For growth investors, Lam Research Corporation (LRCX) is the stronger pick with 23.

7% revenue growth year-over-year, versus 21. 4% for Advanced Energy Industries, Inc. (AEIS). Lam Research Corporation (LRCX) offers the better valuation at 69. 0x trailing P/E (50. 7x forward), making it the more compelling value choice. Analysts rate Advanced Energy Industries, Inc. (AEIS) a "Buy" — based on 24 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.

On trailing P/E, Lam Research Corporation (LRCX) is the cheapest at 69.

0x versus Advanced Energy Industries, Inc. at 91. 7x. On forward P/E, Advanced Energy Industries, Inc. is actually cheaper at 40. 4x — 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 2. 26x versus Advanced Energy Industries, Inc. 's 21. 57x.

Over the past 5 years, Lam Research Corporation (LRCX) delivered a total return of +360.

5%, compared to +292. 7% for Advanced Energy Industries, Inc. (AEIS). Over 10 years, the gap is even starker: LRCX returned +38. 2% versus AEIS's +928. 9%. Past returns do not guarantee future results, and the stock with the higher historical return may already have its best growth priced in.

By beta (market sensitivity over 5 years), Advanced Energy Industries, Inc.

(AEIS) is the lower-risk stock at 2. 18β versus Lam Research Corporation's 2. 54β — meaning LRCX is approximately 17% more volatile than AEIS relative to the S&P 500. On balance sheet safety, Lam Research Corporation (LRCX) carries a lower debt/equity ratio of 48% versus 50% for Advanced Energy Industries, Inc. — giving it more financial flexibility in a downturn.

By revenue growth (latest reported year), Lam Research Corporation (LRCX) is pulling ahead at 23.

7% versus 21. 4% for Advanced Energy Industries, Inc. (AEIS). On earnings-per-share growth, the picture is similar: Advanced Energy Industries, Inc. grew EPS 168. 5% year-over-year, compared to 43. 1% for Lam Research Corporation. Over a 3-year CAGR, LRCX leads at 2. 3% annualised revenue growth. Higher growth typically commands a higher valuation multiple — check whether the premium P/E or P/S is justified by the growth rate using the PEG ratio.

Lam Research Corporation (LRCX) is the more profitable company, earning 29.

1% net margin versus 8. 2% for Advanced Energy Industries, Inc. — meaning it keeps 29. 1% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: LRCX leads at 32. 0% versus 10. 9% for AEIS. At the gross margin level — before operating expenses — LRCX leads at 48. 7%, 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.

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 2. 26x versus Advanced Energy Industries, Inc. 's 21. 57x. Both stocks trade at elevated growth-adjusted valuations, so expected growth needs to materialise. On forward earnings alone, Advanced Energy Industries, Inc. (AEIS) trades at 40. 4x forward P/E versus 50. 7x for Lam Research Corporation — 10. 3x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for LRCX: 1. 5% to $290. 65.

All stocks in this comparison pay dividends.

Lam Research Corporation (LRCX) offers the highest yield at 0. 3%, versus 0. 1% for Advanced Energy Industries, Inc. (AEIS).

For long-horizon retirement investors, Advanced Energy Industries, Inc.

(AEIS) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (+928. 9% 10Y return). Lam Research Corporation (LRCX) carries a higher beta of 2. 54 — meaning larger drawdowns in market downturns, which matters significantly when you cannot wait years for a recovery. Both have compounded well over 10 years (AEIS: +928. 9%, LRCX: +38. 2%), 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.

These companies operate in different sectors (AEIS (Industrials) and LRCX (Technology)), which means they face different economic cycles, regulatory environments, and macro sensitivities — making direct comparison nuanced.

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.