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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 $231.4B against $169.1B — 1.4× the size. Lam Research Corporation trades at the lower P/E: 27.9× against 32.7×. Lam Research Corporation grew revenue faster over the last twelve months: 33.4% against 15.8%. KLA Corporation has the higher net margin (36.3% vs 32.3%) and the lower return on invested capital (51.5% vs 59.1%). Both pay a dividend; KLA Corporation yields more (0.64% vs 0.59%). Across the 23 metrics below, Lam Research Corporation leads on 14 and KLA Corporation on 9.

Valuation

Metric KLAC LRCX Semiconductor Equipment & Materials median
P/E 32.72 27.86 33.70
P/S 11.83 9.00 4.22
P/B 26.30 16.91 2.94
Price to free cash flow 42.61 35.98 31.49
EV/EBITDA 26.34 22.89 22.64
EV/Sales 11.95 8.86 4.97
Earnings yield 3.06% 3.59% 2.02%
Free cash flow yield 2.35% 2.78% 2.27%

Profitability

Metric KLAC LRCX Semiconductor Equipment & Materials median
Gross margin 61.47% 51.05% 46.86%
Operating margin 42.64% 36.95% 12.02%
Net margin 36.25% 32.34% 10.16%
Free cash flow margin 27.83% 25.02% 6.73%
Return on equity 91.38% 70.12% 5.31%
Return on assets 30.29% 35.02% 4.10%
Return on invested capital 51.51% 59.12% 6.36%

Growth

Metric KLAC LRCX Semiconductor Equipment & Materials median
Revenue growth (TTM) 15.82% 33.36% 15.82%
EPS growth (last fiscal year) 20.51% 38.80% (4.56%)
Revenue growth, 5-year CAGR 14.44% 9.70% 10.11%
Net income growth, 5-year CAGR 18.38% 13.20% 0.00%

Health

Metric KLAC LRCX Semiconductor Equipment & Materials median
Debt to equity 0.88 0.27 0.09
Current ratio 2.76 2.48 3.56
Net debt to EBITDA 0.16 (0.21) (0.49)

Dividend

Metric KLAC LRCX Semiconductor Equipment & Materials median
Dividend yield 0.64% 0.59% 0.59%
Payout ratio 0.21 0.17 0.16

Size

Metric KLAC LRCX Semiconductor Equipment & Materials median
Market cap 169.12b 231.35b 3.04b

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