LRCX
Lam Research Corporation
Semiconductors
Market Cap$344.41B
5Y Perf.+907.7%
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Stock Comparison
LRCX vs TER
Revenue, margins, valuation, and 5-year total return — side by side.
TER
Teradyne, Inc.
Semiconductors
Market Cap$55.91B
5Y Perf.+432.8%
LRCX vs TER — Key Financials
Market cap, revenue, margins, and valuation side-by-side.
| Company Snapshot | LRCX | TER |
|---|---|---|
| Industry | Semiconductors | Semiconductors |
| Market Cap | $344.41B | $55.91B |
| Revenue (TTM) | $21.68B | $3.79B |
| Net Income (TTM) | $6.71B | $854M |
| Gross Margin | 50.0% | 58.8% |
| Operating Margin | 34.3% | 26.9% |
| Forward P/E | 48.8x | 49.5x |
| Total Debt | $4.76B | $347M |
| Cash & Equiv. | $6.39B | $294M |
LRCX vs TER — Long-Term Stock Performance
Price return indexed to 100 at period start. Dividends excluded.
LRCX
TER
| Stock | May 20 | May 26 | Return |
|---|---|---|---|
| Lam Research Corpor… (LRCX) | 100 | 1007.7 | +907.7% |
| Teradyne, Inc. (TER) | 100 | 532.8 | +432.8% |
Price return only. Dividends and distributions are not included.
Quick Verdict: LRCX vs TER
Each card shows where this stock fits in a portfolio — not just who wins on paper.
Bottom line: LRCX leads in 6 of 7 categories, making it the strongest pick for growth and revenue expansion and valuation and capital efficiency. Teradyne, Inc. is the stronger pick specifically for recent price momentum and sentiment. As sector peers, any of these can serve as alternatives in the same allocation.
LRCX
Lam Research Corporation
The Income Pick
LRCX carries the broadest edge in this set and is the clearest fit for income & stability and growth exposure.
- Dividend streak 11 yrs, beta 2.54, yield 0.3%
- Rev growth 23.7%, EPS growth 43.1%, 3Y rev CAGR 2.3%
- 36.5% 10Y total return vs TER's 18.2%
Best for: income & stability and growth exposure
TER
Teradyne, Inc.
The Momentum Pick
TER is the clearest fit if your priority is momentum.
- +374.0% vs LRCX's +274.5%
Best for: momentum
See the full category breakdown
| Category | Winner | Why |
|---|---|---|
| Growth | LRCX | 23.7% revenue growth vs TER's 13.1% |
| Value | LRCX | Lower P/E (48.8x vs 49.5x) |
| Quality / Margins | LRCX | 30.9% margin vs TER's 22.6% |
| Stability / Safety | LRCX | Beta 2.54 vs TER's 2.60 |
| Dividends | LRCX | 0.3% yield, 11-year raise streak, vs TER's 0.1% |
| Momentum (1Y) | TER | +374.0% vs LRCX's +274.5% |
| Efficiency (ROA) | LRCX | 31.4% ROA vs TER's 20.9%, ROIC 55.7% vs 19.8% |
LRCX vs TER — Revenue Breakdown by Segment
How each company's revenue is distributed across its business units
FY 2025
FY 2025
LRCX vs TER — Financial Metrics
Side-by-side numbers across 2 stocks — who leads on profitability, valuation, growth, and risk.
BEST OVERALLLRCXLAGGINGTER
TERTeradyne, Inc.
0leads
LRCXLam Research Corporat…
5leads
6 Total Categories
CATEGORYLEADERvs TERMETRICS WON
Income & Cash FlowRevenue, margins, and cash flow strength
Tied
—
Valuation MetricsMultiples, price ratios, and targets
LRCX4/6
Profitability & EfficiencyROE, ROIC, leverage, and quality scores
LRCX6/9
Total Returns1Y, 3Y, 5Y total returns with dividends
LRCX4/6
Risk & VolatilityBeta, volatility, and downside exposure
LRCX2/2
Analyst OutlookRatings, price targets, and dividends
LRCX2/2
Income & Cash Flow (Last 12 Months)
Evenly matched — LRCX and TER each lead in 3 of 6 comparable metrics.
Income & Cash Flow (Last 12 Months)
LRCX is the larger business by revenue, generating $21.7B annually — 5.7x TER's $3.8B. LRCX is the more profitable business, keeping 30.9% of every revenue dollar as net income compared to TER's 22.6%. On growth, TER holds the edge at +87.0% YoY revenue growth, suggesting stronger near-term business momentum.
| Metric | LRCXLam Research Corp… | TERTeradyne, Inc. |
|---|---|---|
| RevenueTrailing 12 months | $21.7B | $3.8B |
| EBITDAEarnings before interest/tax | $7.8B | $1.1B |
| Net IncomeAfter-tax profit | $6.7B | $854M |
| Free Cash FlowCash after capex | $6.5B | $553M |
| Gross MarginGross profit ÷ Revenue | +50.0% | +58.8% |
| Operating MarginEBIT ÷ Revenue | +34.3% | +26.9% |
| Net MarginNet income ÷ Revenue | +30.9% | +22.6% |
| FCF MarginFCF ÷ Revenue | +29.8% | +14.6% |
| Rev. Growth (YoY)Latest quarter vs prior year | +23.8% | +87.0% |
| EPS Growth (YoY)Latest quarter vs prior year | +40.8% | +3.1% |
Evenly matched — LRCX and TER each lead in 3 of 6 comparable metrics.
Valuation Metrics
LRCX leads this category, winning 4 of 6 comparable metrics.
Valuation Metrics
At 66.5x trailing earnings, LRCX trades at a 35% valuation discount to TER's 102.6x P/E. On an enterprise value basis, LRCX's 54.5x EV/EBITDA is more attractive than TER's 68.2x.
| Metric | LRCXLam Research Corp… | TERTeradyne, Inc. |
|---|---|---|
| Market CapShares × price | $344.4B | $55.9B |
| Enterprise ValueMkt cap + debt − cash | $342.8B | $56.0B |
| Trailing P/EPrice ÷ TTM EPS | 66.46x | 102.61x |
| Forward P/EPrice ÷ next-FY EPS est. | 48.78x | 49.53x |
| PEG RatioP/E ÷ EPS growth rate | 2.97x | — |
| EV / EBITDAEnterprise value multiple | 54.52x | 68.23x |
| Price / SalesMarket cap ÷ Revenue | 18.68x | 17.53x |
| Price / BookPrice ÷ Book value/share | 36.08x | 20.14x |
| Price / FCFMarket cap ÷ FCF | 63.61x | 124.13x |
LRCX leads this category, winning 4 of 6 comparable metrics.
Profitability & Efficiency
LRCX leads this category, winning 6 of 9 comparable metrics.
Profitability & Efficiency
LRCX delivers a 65.8% return on equity — every $100 of shareholder capital generates $66 in annual profit, vs $30 for TER. TER carries lower financial leverage with a 0.12x debt-to-equity ratio, signaling a more conservative balance sheet compared to LRCX's 0.48x. On the Piotroski fundamental quality scale (0–9), LRCX scores 8/9 vs TER's 6/9, reflecting strong financial health.
| Metric | LRCXLam Research Corp… | TERTeradyne, Inc. |
|---|---|---|
| ROE (TTM)Return on equity | +65.8% | +29.7% |
| ROA (TTM)Return on assets | +31.4% | +20.9% |
| ROICReturn on invested capital | +55.7% | +19.8% |
| ROCEReturn on capital employed | +40.4% | +22.5% |
| Piotroski ScoreFundamental quality 0–9 | 8 | 6 |
| Debt / EquityFinancial leverage | 0.48x | 0.12x |
| Net DebtTotal debt minus cash | -$1.6B | $53M |
| Cash & Equiv.Liquid assets | $6.4B | $294M |
| Total DebtShort + long-term debt | $4.8B | $347M |
| Interest CoverageEBIT ÷ Interest expense | 58.92x | 69.13x |
LRCX leads this category, winning 6 of 9 comparable metrics.
Total Returns (Dividends Reinvested)
LRCX leads this category, winning 4 of 6 comparable metrics.
Total Returns (Dividends Reinvested)
A $10,000 investment in LRCX five years ago would be worth $45,781 today (with dividends reinvested), compared to $28,860 for TER. Over the past 12 months, TER leads with a +374.0% total return vs LRCX's +274.5%. The 3-year compound annual growth rate (CAGR) favors LRCX at 73.9% vs TER's 57.0% — a key indicator of consistent wealth creation.
| Metric | LRCXLam Research Corp… | TERTeradyne, Inc. |
|---|---|---|
| YTD ReturnYear-to-date | +49.2% | +72.1% |
| 1-Year ReturnPast 12 months | +274.5% | +374.0% |
| 3-Year ReturnCumulative with dividends | +425.6% | +287.0% |
| 5-Year ReturnCumulative with dividends | +357.8% | +188.6% |
| 10-Year ReturnCumulative with dividends | +3647.8% | +1820.5% |
| CAGR (3Y)Annualised 3-year return | +73.9% | +57.0% |
LRCX leads this category, winning 4 of 6 comparable metrics.
Risk & Volatility
LRCX leads this category, winning 2 of 2 comparable metrics.
Risk & Volatility
LRCX is the less volatile stock with a 2.54 beta — it tends to amplify market swings less than TER's 2.60 beta. A beta below 1.0 means the stock typically moves less than the S&P 500. LRCX currently trades 98.5% from its 52-week high vs TER's 84.6% drawdown — a narrower gap to the peak suggests stronger recent price momentum.
| Metric | LRCXLam Research Corp… | TERTeradyne, Inc. |
|---|---|---|
| Beta (5Y)Sensitivity to S&P 500 | 2.54x | 2.60x |
| 52-Week HighHighest price in past year | $279.97 | $422.11 |
| 52-Week LowLowest price in past year | $72.59 | $73.11 |
| % of 52W HighCurrent price vs 52-week peak | +98.5% | +84.6% |
| RSI (14)Momentum oscillator 0–100 | 55.1 | 46.7 |
| Avg Volume (50D)Average daily shares traded | 9.6M | 3.3M |
LRCX leads this category, winning 2 of 2 comparable metrics.
Analyst Outlook
LRCX leads this category, winning 2 of 2 comparable metrics.
Analyst Outlook
Wall Street rates LRCX as "Buy" and TER as "Buy". Consensus price targets imply 5.4% upside for LRCX (target: $291) vs -1.7% for TER (target: $351). For income investors, LRCX offers the higher dividend yield at 0.32% vs TER's 0.14%.
| Metric | LRCXLam Research Corp… | TERTeradyne, Inc. |
|---|---|---|
| Analyst RatingConsensus buy/hold/sell | Buy | Buy |
| Price TargetConsensus 12-month target | $290.65 | $351.09 |
| # AnalystsCovering analysts | 50 | 31 |
| Dividend YieldAnnual dividend ÷ price | +0.3% | +0.1% |
| Dividend StreakConsecutive years of raises | 11 | 4 |
| Dividend / ShareAnnual DPS | $0.89 | $0.48 |
| Buyback YieldShare repurchases ÷ mkt cap | +1.0% | +1.3% |
LRCX leads this category, winning 2 of 2 comparable metrics.
Key Takeaway
LRCX leads in 5 of 6 categories — strongest in Valuation Metrics and Profitability & Efficiency. 1 category is tied.
Best OverallLam Research Corporation (LRCX)Leads 5 of 6 categories
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LRCX vs TER: Frequently Asked Questions
10 questions · data-driven answers · updated daily
01Is LRCX or TER a better buy right now?
For growth investors, Lam Research Corporation (LRCX) is the stronger pick with 23.
7% revenue growth year-over-year, versus 13. 1% for Teradyne, Inc. (TER). Lam Research Corporation (LRCX) offers the better valuation at 66. 5x trailing P/E (48. 8x 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 TER?
On trailing P/E, Lam Research Corporation (LRCX) is the cheapest at 66.
5x versus Teradyne, Inc. at 102. 6x. On forward P/E, Lam Research Corporation is actually cheaper at 48. 8x.
03Which is the better long-term investment — LRCX or TER?
Over the past 5 years, Lam Research Corporation (LRCX) delivered a total return of +357.
8%, compared to +188. 6% for Teradyne, Inc. (TER). Over 10 years, the gap is even starker: LRCX returned +36. 5% versus TER's +1820%. 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 TER?
By beta (market sensitivity over 5 years), Lam Research Corporation (LRCX) is the lower-risk stock at 2.
54β versus Teradyne, Inc. 's 2. 60β — meaning TER is approximately 2% more volatile than LRCX relative to the S&P 500. On balance sheet safety, Teradyne, Inc. (TER) carries a lower debt/equity ratio of 12% versus 48% for Lam Research Corporation — giving it more financial flexibility in a downturn.
05Which is growing faster — LRCX or TER?
By revenue growth (latest reported year), Lam Research Corporation (LRCX) is pulling ahead at 23.
7% versus 13. 1% for Teradyne, Inc. (TER). On earnings-per-share growth, the picture is similar: Lam Research Corporation grew EPS 43. 1% year-over-year, compared to 4. 8% for Teradyne, Inc.. 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.
06Which has better profit margins — LRCX or TER?
Lam Research Corporation (LRCX) is the more profitable company, earning 29.
1% net margin versus 17. 4% for Teradyne, 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 21. 7% for TER. At the gross margin level — before operating expenses — TER leads at 58. 6%, 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.
07Is LRCX or TER more undervalued right now?
On forward earnings alone, Lam Research Corporation (LRCX) trades at 48.
8x forward P/E versus 49. 5x for Teradyne, Inc. — 0. 8x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for LRCX: 5. 4% to $290. 65.
08Which pays a better dividend — LRCX or TER?
All stocks in this comparison pay dividends.
Lam Research Corporation (LRCX) offers the highest yield at 0. 3%, versus 0. 1% for Teradyne, Inc. (TER).
09Is LRCX or TER better for a retirement portfolio?
For long-horizon retirement investors, Teradyne, Inc.
(TER) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (+1820% 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 (TER: +1820%, LRCX: +36. 5%), 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.
10What are the main differences between LRCX and TER?
Both stocks operate in the Technology sector, making this a peer-level intra-sector comparison — the same macro tailwinds and headwinds will affect both.
In terms of investment character: LRCX is a large-cap high-growth stock; TER is a mid-cap quality compounder stock. 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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Revenue Growth>
%
(LRCX: 23.8% · TER: 87.0%)Net Margin>
%
(LRCX: 30.9% · TER: 22.6%)P/E Ratio<
x
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