Comprehensive Stock Comparison
Compare Lam Research Corporation (LRCX) vs ASML Holding N.V. (ASML) 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 | LRCX | 23.7% revenue growth vs ASML's 11.0% |
| Value | ASML | Lower P/E (41.3x vs 44.0x), PEG 1.68 vs 1.96 |
| Quality / Margins | LRCX | 30.2% net margin vs ASML's 29.4% |
| Stability / Safety | ASML | Beta 1.45 vs LRCX's 1.95, lower leverage |
| Dividends | ASML | 0.5% yield, vs LRCX's 0.4% |
| Momentum (1Y) | LRCX | +206.1% vs ASML's +105.6% |
| Efficiency (ROA) | LRCX | 29.0% ROA vs ASML's 18.3%, ROIC 55.7% vs 80.9% |
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.
ASML is the world's only manufacturer of extreme ultraviolet (EUV) lithography machines — the most advanced equipment needed to produce cutting-edge semiconductors. It generates revenue primarily from selling these multi-million-dollar systems (over 80% of sales) and related services like maintenance and upgrades. Its monopoly on EUV technology — which took decades and billions to develop — creates an insurmountable moat, as no competitor can realistically replicate its complex ecosystem.
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
ASML leads in 3 of 6 categories (Valuation Metrics, Profitability & Efficiency). LRCX leads in 1 (Total Returns). 2 tied.
Financial Metrics (TTM)
ASML is the larger business by revenue, generating $31.4B annually — 1.5x LRCX's $20.6B. Profitability is closely matched — net margins range from 30.2% (LRCX) to 29.4% (ASML). On growth, LRCX holds the edge at +22.1% YoY revenue growth, suggesting stronger near-term business momentum.
| Metric | LRCXLam Research Corp… | ASMLASML Holding N.V. |
|---|---|---|
| RevenueTrailing 12 months | $20.6B | $31.4B |
| EBITDAEarnings before interest/tax | $7.3B | $11.8B |
| Net IncomeAfter-tax profit | $6.2B | $9.2B |
| Free Cash FlowCash after capex | $6.7B | $10.7B |
| Gross MarginGross profit ÷ Revenue | +49.8% | +52.8% |
| Operating MarginEBIT ÷ Revenue | +33.8% | +34.6% |
| Net MarginNet income ÷ Revenue | +30.2% | +29.4% |
| FCF MarginFCF ÷ Revenue | +32.4% | +34.2% |
| Rev. Growth (YoY)Latest quarter vs prior year | +22.1% | -9.0% |
| EPS Growth (YoY)Latest quarter vs prior year | +37.0% | -4.8% |
Valuation Metrics
At 51.8x trailing earnings, ASML trades at a 8% valuation discount to LRCX's 56.4x P/E. Adjusting for growth (PEG ratio), ASML offers better value at 2.10x vs LRCX's 2.52x — a lower PEG means you pay less per unit of expected earnings growth.
| Metric | LRCXLam Research Corp… | ASMLASML Holding N.V. |
|---|---|---|
| Market CapShares × price | $292.6B | $563.0B |
| Enterprise ValueMkt cap + debt − cash | $291.0B | $551.0B |
| Trailing P/EPrice ÷ TTM EPS | 56.36x | 51.82x |
| Forward P/EPrice ÷ next-FY EPS est. | 43.97x | 41.31x |
| PEG RatioP/E ÷ EPS growth rate | 2.52x | 2.10x |
| EV / EBITDAEnterprise value multiple | 46.28x | 39.45x |
| Price / SalesMarket cap ÷ Revenue | 15.87x | 15.21x |
| Price / BookPrice ÷ Book value/share | 30.60x | 24.40x |
| Price / FCFMarket cap ÷ FCF | 54.05x | 44.83x |
Profitability & Efficiency
LRCX delivers a 61.2% return on equity — every $100 of shareholder capital generates $61 in annual profit, vs $47 for ASML. ASML carries lower financial leverage with a 0.14x debt-to-equity ratio, signaling a more conservative balance sheet compared to LRCX's 0.48x.
| Metric | LRCXLam Research Corp… | ASMLASML Holding N.V. |
|---|---|---|
| ROE (TTM)Return on equity | +61.2% | +47.1% |
| ROA (TTM)Return on assets | +29.0% | +18.3% |
| ROICReturn on invested capital | +55.7% | +80.9% |
| ROCEReturn on capital employed | +40.4% | +39.6% |
| Piotroski ScoreFundamental quality 0–9 | 8 | 8 |
| Debt / EquityFinancial leverage | 0.48x | 0.14x |
| Net DebtTotal debt minus cash | -$1.6B | -$10.2B |
| Cash & Equiv.Liquid assets | $6.4B | $12.9B |
| Total DebtShort + long-term debt | $4.8B | $2.7B |
| Interest CoverageEBIT ÷ Interest expense | 41.06x | — |
Total Returns (with DRIP)
A $10,000 investment in LRCX five years ago would be worth $39,693 today (with dividends reinvested), compared to $25,413 for ASML. Over the past 12 months, LRCX leads with a +206.1% total return vs ASML's +105.6%. The 3-year compound annual growth rate (CAGR) favors LRCX at 69.5% vs ASML's 33.5% — a key indicator of consistent wealth creation.
| Metric | LRCXLam Research Corp… | ASMLASML Holding N.V. |
|---|---|---|
| YTD ReturnYear-to-date | +26.4% | +24.8% |
| 1-Year ReturnPast 12 months | +206.1% | +105.6% |
| 3-Year ReturnCumulative with dividends | +386.6% | +138.1% |
| 5-Year ReturnCumulative with dividends | +296.9% | +154.1% |
| 10-Year ReturnCumulative with dividends | +3164.9% | +1540.9% |
| CAGR (3Y)Annualised 3-year return | +69.5% | +33.5% |
Risk & Volatility
ASML is the less volatile stock with a 1.45 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.
| Metric | LRCXLam Research Corp… | ASMLASML Holding N.V. |
|---|---|---|
| Beta (5Y)Sensitivity to S&P 500 | 1.95x | 1.45x |
| 52-Week HighHighest price in past year | $256.68 | $1547.22 |
| 52-Week LowLowest price in past year | $56.32 | $578.51 |
| % of 52W HighCurrent price vs 52-week peak | +91.1% | +93.8% |
| RSI (14)Momentum oscillator 0–100 | 55.7 | 57.7 |
| Avg Volume (50D)Average daily shares traded | 10.1M | 1.5M |
Analyst Outlook
Wall Street rates LRCX as "Buy" and ASML as "Buy". Consensus price targets imply 14.4% upside for LRCX (target: $268) vs 0.5% for ASML (target: $1459). For income investors, ASML offers the higher dividend yield at 0.51% vs LRCX's 0.38%.
| Metric | LRCXLam Research Corp… | ASMLASML Holding N.V. |
|---|---|---|
| Analyst RatingConsensus buy/hold/sell | Buy | Buy |
| Price TargetConsensus 12-month target | $267.50 | $1458.50 |
| # AnalystsCovering analysts | 50 | 44 |
| Dividend YieldAnnual dividend ÷ price | +0.4% | +0.5% |
| Dividend StreakConsecutive years of raises | 11 | 0 |
| Dividend / ShareAnnual DPS | $0.89 | $6.30 |
| Buyback YieldShare repurchases ÷ mkt cap | +1.2% | +1.2% |
Historical Charts
Charts are rendered on first load. Hover for details.
Chart 1Total Return — 5 Years (Rebased to 100)
| Stock | Mar 20 | Feb 26 | Change |
|---|---|---|---|
| Lam Research Corpor… (LRCX) | 100 | 790.88 | +690.9% |
| ASML Holding N.V. (ASML) | 100 | 501.37 | +401.4% |
Lam Research Corpor… (LRCX) returned +297% over 5 years vs ASML Holding N.V. (ASML)'s +154%. A $10,000 investment in LRCX 5 years ago would be worth $39,693 today (including dividends reinvested).
Chart 2Revenue Growth — 10 Years
| Stock | 2016 | 2025 | Change |
|---|---|---|---|
| Lam Research Corpor… (LRCX) | $5.9B | $18.4B | +213.2% |
| ASML Holding N.V. (ASML) | $6.9B | $31.4B | +356.4% |
Lam Research Corporation's revenue grew from $5.9B (2016) to $18.4B (2025) — a 13.5% CAGR. ASML Holding N.V.'s revenue grew from $6.9B (2016) to $31.4B (2025) — a 18.4% CAGR.
Chart 3Net Margin Trend — 10 Years
| Stock | 2016 | 2025 | Change |
|---|---|---|---|
| Lam Research Corpor… (LRCX) | 15.5% | 29.1% | +87.2% |
| ASML Holding N.V. (ASML) | 22.7% | 29.4% | +29.8% |
Lam Research Corporation's net margin went from 16% (2016) to 29% (2025). ASML Holding N.V.'s net margin went from 23% (2016) to 29% (2025).
Chart 4P/E Ratio History — 9 Years
| Stock | 2017 | 2025 | Change |
|---|---|---|---|
| Lam Research Corpor… (LRCX) | 20 | 41.2 | +106.0% |
| ASML Holding N.V. (ASML) | 37.7 | 45.1 | +19.6% |
Lam Research Corporation has traded in a 10x–41x P/E range over 9 years; current trailing P/E is ~56x. ASML Holding N.V. has traded in a 25x–62x P/E range over 9 years; current trailing P/E is ~52x.
Chart 5EPS Growth — 10 Years
| Stock | 2016 | 2025 | Change |
|---|---|---|---|
| Lam Research Corpor… (LRCX) | 0.52 | 4.15 | +698.1% |
| ASML Holding N.V. (ASML) | 3.63 | 23.73 | +553.7% |
Lam Research Corporation's EPS grew from $0.52 (2016) to $4.15 (2025) — a 26% CAGR. ASML Holding N.V.'s EPS grew from $3.63 (2016) to $23.73 (2025) — a 23% CAGR.
Chart 6Free Cash Flow — 5 Years
Lam Research Corporation generated $5B FCF in 2025 (+67% vs 2021). ASML Holding N.V. generated $11B FCF in 2025 (+3% vs 2021).
LRCX vs ASML: Frequently Asked Questions
9 questions · data-driven answers · updated daily
01Is LRCX or ASML a better buy right now?
ASML Holding N.V. (ASML) offers the better valuation at 51.8x trailing P/E (41.3x 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 ASML?
On trailing P/E, ASML Holding N.V. (ASML) is the cheapest at 51.8x versus Lam Research Corporation at 56.4x. On forward P/E, ASML Holding N.V. is actually cheaper at 41.3x. The PEG ratio (P/E divided by earnings growth rate) is the most growth-adjusted single valuation metric: ASML Holding N.V. wins at 1.68x versus Lam Research Corporation's 1.96x — a reasonable growth-adjusted valuation.
03Which is the better long-term investment — LRCX or ASML?
Over the past 5 years, Lam Research Corporation (LRCX) delivered a total return of +296.9%, compared to +154.1% for ASML Holding N.V. (ASML). A $10,000 investment in LRCX five years ago would be worth approximately $40K today (assuming dividends reinvested). Over 10 years, the gap is even starker: LRCX returned +31.6% versus ASML's +1541%. 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 ASML?
By beta (market sensitivity over 5 years), ASML Holding N.V. (ASML) is the lower-risk stock at 1.45β versus Lam Research Corporation's 1.95β — meaning LRCX is approximately 34% more volatile than ASML relative to the S&P 500. On balance sheet safety, ASML Holding N.V. (ASML) carries a lower debt/equity ratio of 14% versus 48% for Lam Research Corporation — giving it more financial flexibility in a downturn.
05Which has better profit margins — LRCX or ASML?
ASML Holding N.V. (ASML) is the more profitable company, earning 29.4% net margin versus 29.1% for Lam Research Corporation — meaning it keeps 29.4% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: ASML leads at 34.6% versus 32.0% for LRCX. At the gross margin level — before operating expenses — ASML leads at 52.8%, 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 ASML 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, ASML Holding N.V. (ASML) is the more undervalued stock at a PEG of 1.68x versus Lam Research Corporation's 1.96x. Both stocks trade at elevated growth-adjusted valuations, so expected growth needs to materialise. On forward earnings alone, ASML Holding N.V. (ASML) trades at 41.3x forward P/E versus 44.0x for Lam Research Corporation — 2.7x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for LRCX: 14.4% to $267.50.
07Which pays a better dividend — LRCX or ASML?
All stocks in this comparison pay dividends. ASML Holding N.V. (ASML) offers the highest yield at 0.5%, versus 0.4% for Lam Research Corporation (LRCX).
08Is LRCX or ASML better for a retirement portfolio?
For long-horizon retirement investors, ASML Holding N.V. (ASML) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (0.5% yield, +1541% 10Y return). 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 (ASML: +1541%, 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 ASML?
Both stocks operate in the Technology sector, making this a peer-level intra-sector comparison — the same macro tailwinds and headwinds will affect both. ASML 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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