KLA Corporation (KLAC) vs Lam Research Corporation (LRCX)

KLA Corporation and Lam Research Corporation are both Semiconductor Equipment & Materials companies. Lam Research Corporation is the larger, with a market value of $390.4B against $248.2B — 1.6× the size. KLA Corporation trades at the lower P/E: 51.1× against 54.4×. Lam Research Corporation grew revenue faster over the last twelve months: 26.0% against 11.7%. KLA Corporation has the higher net margin (35.6% vs 31.3%) and the higher return on invested capital (48.2% vs 48.2%). Both pay a dividend; KLA Corporation yields more (0.91% vs 0.90%). Across the 23 metrics below, KLA Corporation leads on 15 and Lam Research Corporation on 8.

Valuation

Metric KLAC LRCX Semiconductor Equipment & Materials median
P/E 51.08 54.44 54.39
P/S 18.16 17.03 6.08
P/B 38.83 31.72 4.89
Price to free cash flow 65.65 80.88 60.92
EV/EBITDA 41.01 45.57 39.95
EV/Sales 18.29 16.95 6.36
Earnings yield 1.96% 1.84% 1.14%
Free cash flow yield 1.52% 1.24% 1.28%

Profitability

Metric KLAC LRCX Semiconductor Equipment & Materials median
Gross margin 61.30% 50.47% 43.95%
Operating margin 41.69% 35.29% 10.32%
Net margin 35.57% 31.27% 7.45%
Free cash flow margin 27.74% 21.05% 6.77%
Return on equity 87.50% 65.07% 4.78%
Return on assets 28.40% 32.38% 3.62%
Return on invested capital 48.24% 48.23% 6.10%

Growth

Metric KLAC LRCX Semiconductor Equipment & Materials median
Revenue growth (TTM) 11.71% 26.02% 14.60%
EPS growth (last fiscal year) 20.51% 38.80% —
Revenue growth, 5-year CAGR 14.44% 9.70% 8.85%
Net income growth, 5-year CAGR 18.38% 13.20% 0.00%

Health

Metric KLAC LRCX Semiconductor Equipment & Materials median
Debt to equity 0.93 0.30 0.09
Current ratio 2.88 2.63 3.66
Net debt to EBITDA 0.16 (0.21) (0.49)

Dividend

Metric KLAC LRCX Semiconductor Equipment & Materials median
Dividend yield 0.91% 0.90% 0.85%
Payout ratio 0.22 0.21 0.00

Size

Metric KLAC LRCX Semiconductor Equipment & Materials median
Market cap 248.19b 390.42b 4.63b

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