Comprehensive Stock Comparison
Compare Lam Research Corporation (LRCX) vs Veeco Instruments Inc. (VECO) 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 VECO's -7.4% |
| Value | VECO | Lower P/E (18.3x vs 44.0x) |
| Quality / Margins | LRCX | 30.2% net margin vs VECO's 5.3% |
| Stability / Safety | VECO | Beta 1.49 vs LRCX's 1.95, lower leverage |
| Dividends | LRCX | 0.4% yield; 11-year raise streak; VECO pays no meaningful dividend |
| Momentum (1Y) | LRCX | +206.1% vs VECO's +37.4% |
| Efficiency (ROA) | LRCX | 29.0% ROA vs VECO's 2.7%, ROIC 55.7% vs 2.8% |
Who Each Stock Is For
Income & stability
Growth exposure
Long-term compounding (10Y)
Sleep-well-at-night portfolio
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.
Veeco Instruments designs and manufactures specialized semiconductor manufacturing equipment used to produce microelectronic components like logic chips, memory, and photonics devices. It generates revenue primarily from selling its laser annealing, deposition, etching, and wafer processing systems to semiconductor manufacturers, foundries, and research institutions. The company's competitive advantage lies in its deep expertise in precision thin-film process technologies—particularly in areas like molecular beam epitaxy and atomic layer deposition—where it has established strong customer relationships and technical barriers to entry.
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
LRCX leads in 3 of 6 categories (Financial Metrics, Profitability & Efficiency). VECO leads in 1 (Valuation Metrics). 1 tied.
Financial Metrics (TTM)
LRCX is the larger business by revenue, generating $20.6B annually — 31.0x VECO's $664M. LRCX is the more profitable business, keeping 30.2% of every revenue dollar as net income compared to VECO's 5.3%. On growth, LRCX holds the edge at +22.1% YoY revenue growth, suggesting stronger near-term business momentum.
| Metric | LRCXLam Research Corp… | VECOVeeco Instruments… |
|---|---|---|
| RevenueTrailing 12 months | $20.6B | $664M |
| EBITDAEarnings before interest/tax | $7.3B | $39M |
| Net IncomeAfter-tax profit | $6.2B | $35M |
| Free Cash FlowCash after capex | $6.7B | $46M |
| Gross MarginGross profit ÷ Revenue | +49.8% | +40.0% |
| Operating MarginEBIT ÷ Revenue | +33.8% | +5.4% |
| Net MarginNet income ÷ Revenue | +30.2% | +5.3% |
| FCF MarginFCF ÷ Revenue | +32.4% | +6.9% |
| Rev. Growth (YoY)Latest quarter vs prior year | +22.1% | -9.4% |
| EPS Growth (YoY)Latest quarter vs prior year | +37.0% | -92.3% |
Valuation Metrics
At 51.8x trailing earnings, VECO trades at a 8% valuation discount to LRCX's 56.4x P/E. On an enterprise value basis, LRCX's 46.3x EV/EBITDA is more attractive than VECO's 49.9x.
| Metric | LRCXLam Research Corp… | VECOVeeco Instruments… |
|---|---|---|
| Market CapShares × price | $292.6B | $1.8B |
| Enterprise ValueMkt cap + debt − cash | $291.0B | $1.9B |
| Trailing P/EPrice ÷ TTM EPS | 56.36x | 51.80x |
| Forward P/EPrice ÷ next-FY EPS est. | 43.97x | 18.27x |
| PEG RatioP/E ÷ EPS growth rate | 2.52x | — |
| EV / EBITDAEnterprise value multiple | 46.28x | 49.94x |
| Price / SalesMarket cap ÷ Revenue | 15.87x | 2.78x |
| Price / BookPrice ÷ Book value/share | 30.60x | 2.09x |
| Price / FCFMarket cap ÷ FCF | 54.05x | 40.38x |
Profitability & Efficiency
LRCX delivers a 61.2% return on equity — every $100 of shareholder capital generates $61 in annual profit, vs $4 for VECO. VECO carries lower financial leverage with a 0.29x 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 VECO's 6/9, reflecting strong financial health.
| Metric | LRCXLam Research Corp… | VECOVeeco Instruments… |
|---|---|---|
| ROE (TTM)Return on equity | +61.2% | +4.0% |
| ROA (TTM)Return on assets | +29.0% | +2.7% |
| ROICReturn on invested capital | +55.7% | +2.8% |
| ROCEReturn on capital employed | +40.4% | +3.2% |
| Piotroski ScoreFundamental quality 0–9 | 8 | 6 |
| Debt / EquityFinancial leverage | 0.48x | 0.29x |
| Net DebtTotal debt minus cash | -$1.6B | $94M |
| Cash & Equiv.Liquid assets | $6.4B | $163M |
| Total DebtShort + long-term debt | $4.8B | $258M |
| Interest CoverageEBIT ÷ Interest expense | 41.06x | 3.91x |
Total Returns (with DRIP)
A $10,000 investment in LRCX five years ago would be worth $39,693 today (with dividends reinvested), compared to $13,546 for VECO. Over the past 12 months, LRCX leads with a +206.1% total return vs VECO's +37.4%. The 3-year compound annual growth rate (CAGR) favors LRCX at 69.5% vs VECO's 12.8% — a key indicator of consistent wealth creation.
| Metric | LRCXLam Research Corp… | VECOVeeco Instruments… |
|---|---|---|
| YTD ReturnYear-to-date | +26.4% | +0.1% |
| 1-Year ReturnPast 12 months | +206.1% | +37.4% |
| 3-Year ReturnCumulative with dividends | +386.6% | +43.7% |
| 5-Year ReturnCumulative with dividends | +296.9% | +35.5% |
| 10-Year ReturnCumulative with dividends | +3164.9% | +64.7% |
| CAGR (3Y)Annualised 3-year return | +69.5% | +12.8% |
Risk & Volatility
VECO is the less volatile stock with a 1.49 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 VECO's 85.4% drawdown — a narrower gap to the peak suggests stronger recent price momentum.
| Metric | LRCXLam Research Corp… | VECOVeeco Instruments… |
|---|---|---|
| Beta (5Y)Sensitivity to S&P 500 | 1.95x | 1.49x |
| 52-Week HighHighest price in past year | $256.68 | $35.77 |
| 52-Week LowLowest price in past year | $56.32 | $16.92 |
| % of 52W HighCurrent price vs 52-week peak | +91.1% | +85.4% |
| RSI (14)Momentum oscillator 0–100 | 55.7 | 49.8 |
| Avg Volume (50D)Average daily shares traded | 10.1M | 578K |
Analyst Outlook
Wall Street rates LRCX as "Buy" and VECO as "Buy". Consensus price targets imply 14.4% upside for LRCX (target: $268) vs -1.8% for VECO (target: $30). LRCX is the only dividend payer here at 0.38% yield — a key consideration for income-focused portfolios.
| Metric | LRCXLam Research Corp… | VECOVeeco Instruments… |
|---|---|---|
| Analyst RatingConsensus buy/hold/sell | Buy | Buy |
| Price TargetConsensus 12-month target | $267.50 | $30.00 |
| # AnalystsCovering analysts | 50 | 36 |
| Dividend YieldAnnual dividend ÷ price | +0.4% | — |
| Dividend StreakConsecutive years of raises | 11 | — |
| Dividend / ShareAnnual DPS | $0.89 | — |
| Buyback YieldShare repurchases ÷ mkt cap | +1.2% | 0.0% |
Historical Charts
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Chart 1Total Return — 5 Years (Rebased to 100)
| Stock | Mar 20 | Feb 26 | Change |
|---|---|---|---|
| Lam Research Corpor… (LRCX) | 100 | 790.88 | +690.9% |
| Veeco Instruments I… (VECO) | 100 | 234.18 | +134.2% |
Lam Research Corpor… (LRCX) returned +297% over 5 years vs Veeco Instruments I… (VECO)'s +35%. 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% |
| Veeco Instruments I… (VECO) | $332M | $664M | +99.8% |
Lam Research Corporation's revenue grew from $5.9B (2016) to $18.4B (2025) — a 13.5% CAGR. Veeco Instruments Inc.'s revenue grew from $332M (2016) to $664M (2025) — a 8.0% CAGR.
Chart 3Net Margin Trend — 10 Years
| Stock | 2016 | 2025 | Change |
|---|---|---|---|
| Lam Research Corpor… (LRCX) | 15.5% | 29.1% | +87.2% |
| Veeco Instruments I… (VECO) | -36.8% | 5.3% | +114.5% |
Lam Research Corporation's net margin went from 16% (2016) to 29% (2025). Veeco Instruments Inc.'s net margin went from -37% (2016) to 5% (2025).
Chart 4P/E Ratio History — 9 Years
| Stock | 2017 | 2025 | Change |
|---|---|---|---|
| Lam Research Corpor… (LRCX) | 20 | 41.2 | +106.0% |
| Veeco Instruments I… (VECO) | 58.1 | 48.4 | -16.7% |
Lam Research Corporation has traded in a 10x–41x P/E range over 9 years; current trailing P/E is ~56x. Veeco Instruments Inc. has traded in a 7x–58x P/E range over 4 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% |
| Veeco Instruments I… (VECO) | -3.11 | 0.59 | +119.0% |
Lam Research Corporation's EPS grew from $0.52 (2016) to $4.15 (2025) — a 26% CAGR. Veeco Instruments Inc.'s EPS grew from $-3.11 (2016) to $0.59 (2025).
Chart 6Free Cash Flow — 5 Years
Lam Research Corporation generated $5B FCF in 2025 (+67% vs 2021). Veeco Instruments Inc. generated $46M FCF in 2025 (+69% vs 2021).
LRCX vs VECO: Frequently Asked Questions
9 questions · data-driven answers · updated daily
01Is LRCX or VECO a better buy right now?
Veeco Instruments Inc. (VECO) offers the better valuation at 51.8x trailing P/E (18.3x 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 VECO?
On trailing P/E, Veeco Instruments Inc. (VECO) is the cheapest at 51.8x versus Lam Research Corporation at 56.4x. On forward P/E, Veeco Instruments Inc. is actually cheaper at 18.3x.
03Which is the better long-term investment — LRCX or VECO?
Over the past 5 years, Lam Research Corporation (LRCX) delivered a total return of +296.9%, compared to +35.5% for Veeco Instruments Inc. (VECO). 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 VECO's +64.7%. 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 VECO?
By beta (market sensitivity over 5 years), Veeco Instruments Inc. (VECO) is the lower-risk stock at 1.49β versus Lam Research Corporation's 1.95β — meaning LRCX is approximately 30% more volatile than VECO relative to the S&P 500. On balance sheet safety, Veeco Instruments Inc. (VECO) carries a lower debt/equity ratio of 29% versus 48% for Lam Research Corporation — giving it more financial flexibility in a downturn.
05Which has better profit margins — LRCX or VECO?
Lam Research Corporation (LRCX) is the more profitable company, earning 29.1% net margin versus 5.3% for Veeco Instruments 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 5.4% for VECO. 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.
06Is LRCX or VECO more undervalued right now?
On forward earnings alone, Veeco Instruments Inc. (VECO) trades at 18.3x forward P/E versus 44.0x for Lam Research Corporation — 25.7x 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 VECO?
In this comparison, LRCX (0.4% yield) pays a dividend. VECO does not pay a meaningful dividend and should not be held primarily for income.
08Is LRCX or VECO better for a retirement portfolio?
For long-horizon retirement investors, Veeco Instruments Inc. (VECO) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding. 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 (VECO: +64.7%, 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 VECO?
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.
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