LRCX vs KLAC

For growth investors, KLA Corporation (KLAC) is the stronger pick with 23.

9% revenue growth year-over-year, versus 23. 7% for Lam Research Corporation (LRCX). KLA Corporation (KLAC) offers the better valuation at 57. 1x trailing P/E (47. 1x 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.

On trailing P/E, KLA Corporation (KLAC) is the cheapest at 57.

1x versus Lam Research Corporation at 66. 5x. On forward P/E, KLA Corporation is actually cheaper at 47. 1x. The PEG ratio (P/E divided by earnings growth rate) is the most growth-adjusted single valuation metric: KLA Corporation wins at 1. 49x versus Lam Research Corporation's 2. 18x — a reasonable growth-adjusted valuation.

Over the past 5 years, KLA Corporation (KLAC) delivered a total return of +464.

7%, compared to +357. 8% for Lam Research Corporation (LRCX). Over 10 years, the gap is even starker: LRCX returned +36. 5% versus KLAC's +24. 6%. 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), KLA Corporation (KLAC) is the lower-risk stock at 2.

20β versus Lam Research Corporation's 2. 54β — meaning LRCX is approximately 16% more volatile than KLAC relative to the S&P 500. On balance sheet safety, Lam Research Corporation (LRCX) carries a lower debt/equity ratio of 48% versus 130% for KLA Corporation — giving it more financial flexibility in a downturn.

By revenue growth (latest reported year), KLA Corporation (KLAC) is pulling ahead at 23.

9% versus 23. 7% for Lam Research Corporation (LRCX). On earnings-per-share growth, the picture is similar: KLA Corporation grew EPS 49. 8% year-over-year, compared to 43. 1% for Lam Research Corporation. Over a 3-year CAGR, KLAC leads at 9. 7% 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.

KLA Corporation (KLAC) is the more profitable company, earning 33.

4% net margin versus 29. 1% for Lam Research Corporation — meaning it keeps 33. 4% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: KLAC leads at 43. 1% versus 32. 0% for LRCX. At the gross margin level — before operating expenses — KLAC leads at 62. 3%, 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, KLA Corporation (KLAC) is the more undervalued stock at a PEG of 1. 49x versus Lam Research Corporation's 2. 18x. A PEG below 1. 5 suggests fair-to-attractive pricing relative to expected growth. On forward earnings alone, KLA Corporation (KLAC) trades at 47. 1x forward P/E versus 48. 8x for Lam Research Corporation — 1. 7x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for LRCX: 5. 4% to $290. 65.

All stocks in this comparison pay dividends.

KLA Corporation (KLAC) offers the highest yield at 0. 4%, versus 0. 3% for Lam Research Corporation (LRCX).

For long-horizon retirement investors, Lam Research Corporation (LRCX) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding.

KLA Corporation (KLAC) carries a higher beta of 2. 20 — meaning larger drawdowns in market downturns, which matters significantly when you cannot wait years for a recovery. Both have compounded well over 10 years (LRCX: +36. 5%, KLAC: +24. 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.

Both stocks operate in the Technology sector, making this a peer-level intra-sector comparison — the same macro tailwinds and headwinds will affect both.

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.