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LRCX vs MSFT

LRCX
Lam Research Corporation
NEUTRAL
Price
$258.37
Market Cap
$324.52B
Sector
Technology
AI Confidence
85%
MSFT
Microsoft Corporation
BULLISH
Price
$429.25
Market Cap
$3.19T
Sector
Technology
AI Confidence
85%

Valuation

P/E Ratio
LRCX
54.05
MSFT
26.6
Forward P/E
LRCX
36.1
MSFT
22.68
P/B Ratio
LRCX
31.86
MSFT
8.16
P/S Ratio
LRCX
15.78
MSFT
10.44
EV/EBITDA
LRCX
43.7
MSFT
18.38

Profitability

Gross Margin
LRCX
49.8%
MSFT
68.59%
Operating Margin
LRCX
33.87%
MSFT
47.09%
Profit Margin
LRCX
30.22%
MSFT
39.04%
ROE
LRCX
65.56%
MSFT
34.39%
ROA
LRCX
21.05%
MSFT
14.86%

Growth

Revenue Growth
LRCX
22.1%
MSFT
16.7%
Earnings Growth
LRCX
37.0%
MSFT
59.8%

Financial Health

Debt/Equity
LRCX
0.44
MSFT
0.32
Current Ratio
LRCX
2.26
MSFT
1.39
Quick Ratio
LRCX
1.56
MSFT
1.24

Dividends

Dividend Yield
LRCX
0.4%
MSFT
0.85%
Payout Ratio
LRCX
20.12%
MSFT
21.28%

AI Verdict

LRCX NEUTRAL

LRCX presents a dichotomy between operational excellence and valuation extremes. The Piotroski F-Score of 4/9 indicates stable financial health, but the stock is trading at a massive premium to its Graham Number ($29.53) and Intrinsic Value ($141.01). While the company boasts an exceptional ROE of 65.56% and a stellar 25-quarter earnings beat record, the technical trend (10/100) and bearish insider activity ($29.66M in sales) suggest the current price may be overextended. The company is a high-quality compounder currently priced for perfection.

Strengths
Exceptional profitability with ROE at 65.56% and Operating Margin at 33.87%
Consistent earnings track record with beats in nearly all of the last 25 quarters
Strong growth trajectory with 37% YoY earnings growth and 22.1% revenue growth
Risks
Severe valuation stretch with a P/B of 31.86 and P/S of 15.78
Bearish insider sentiment, specifically significant selling by the CFO and Directors
Highly bearish technical trend (10/100) indicating potential momentum reversal
MSFT BULLISH

Microsoft exhibits strong financial health with a Piotroski F-Score of 7/9, indicating robust operational efficiency and stability. While the stock trades at a significant premium to its Graham Number ($138.23), it remains below its growth-based intrinsic value of $476.13, suggesting reasonable upside. Exceptional earnings growth (59.8% YoY) and elite profit margins (39.04%) outweigh current bearish technical trends and insider selling. The company's consistent track record of beating earnings estimates over 25 quarters reinforces a strong long-term outlook.

Strengths
Strong Piotroski F-Score (7/9) confirming financial health
Exceptional profitability with 47.09% operating margins
Massive earnings growth (59.8% YoY) and consistent EPS beats
Risks
Bearish technical trend (0/100) indicating short-term price pressure
Net bearish insider sentiment with $32.64M in recent sales
High valuation multiples (P/B of 8.16 and P/S of 10.44)

Compare Another Pair

LRCX vs MSFT: Head-to-Head Comparison

This page compares Lam Research Corporation (LRCX) and Microsoft Corporation (MSFT) across key fundamental metrics including valuation ratios, profitability margins, growth rates, financial health indicators, and dividend metrics. Each metric highlights the better-performing stock so you can quickly identify relative strengths and weaknesses.

Our AI engine independently analyzes each company's financials, competitive position, and market conditions to produce a verdict (Bullish, Neutral, or Bearish) along with key strengths and risks. Use this comparison alongside your own research to make informed investment decisions.

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