LRCX Jumps 14% in a Week, But Does KLAC Offer Better Fundamentals?
KLA (KLAC) offers superior revenue growth across key periods, better profitability, and relatively lower valuation vs Lam Research (LRCX), suggesting you may be better off investing in KLAC
- KLAC’s Last 12 Months revenue growth was 23.9%, vs. LRCX’s 23.7%.
- In addition, its Last 3-Year Average revenue growth came in at 10.4%, ahead of LRCX’s 3.5%.
- KLAC leads on profitability over both periods – LTM margin of 41.2% and 3-year average of 38.8%.
LRCX designs, manufactures, and services semiconductor processing equipment for integrated circuit fabrication, serving the global semiconductor industry including the US, Asia, and Europe. KLAC designs and markets process control, defect inspection, metrology, and data analytics solutions for semiconductor and nanoelectronics manufacturing.
Valuation & Performance Overview
| LRCX | KLAC | Preferred | |
|---|---|---|---|
| Valuation | |||
| P/EBIT Ratio | 26.3 | 26.1 | KLAC |
| Revenue Growth | |||
| Last Quarter | 33.6% | 23.6% | LRCX |
| Last 12 Months | 23.7% | 23.9% | KLAC |
| Last 3 Year Average | 3.5% | 10.4% | KLAC |
| Operating Margins | |||
| Last 12 Months | 32.0% | 41.2% | KLAC |
| Last 3 Year Average | 30.2% | 38.8% | KLAC |
| Momentum | |||
| Last 3 Year Return | 207.4% | 204.4% | LRCX |
Note: For “Last 3 Year Return” metric, preferred stock is one with higher returns unless the returns are too high (>300%) which creates risk of sell off.
See more revenue details: LRCX Revenue Comparison | KLAC Revenue Comparison
See more margin details: LRCX Operating Income Comparison | KLAC Operating Income Comparison
But do these numbers tell the full story? Read Buy or Sell KLAC Stock to see if KLA’s edge holds up under the hood or if Lam Research still has cards to play (see Buy or Sell LRCX Stock).
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Historical Market Performance
| 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | Total [1] | Avg | Best | |
|---|---|---|---|---|---|---|---|---|---|
| Returns | |||||||||
| LRCX Return | 64% | 54% | -41% | 89% | -7% | 70% | 328% | ||
| KLAC Return | 48% | 68% | -11% | 56% | 9% | 58% | 480% | <=== | |
| S&P 500 Return | 16% | 27% | -19% | 24% | 23% | 12% | 104% | ||
| Monthly Win Rates [3] | |||||||||
| LRCX Win Rate | 67% | 67% | 33% | 58% | 42% | 50% | 53% | ||
| KLAC Win Rate | 67% | 75% | 42% | 67% | 42% | 50% | 57% | ||
| S&P 500 Win Rate | 58% | 75% | 42% | 67% | 75% | 62% | 63% | <=== | |
| Max Drawdowns [4] | |||||||||
| LRCX Max Drawdown | -36% | 0% | -56% | -1% | -10% | -18% | -20% | ||
| KLAC Max Drawdown | -36% | 0% | -38% | -5% | -6% | -8% | -16% | ||
| S&P 500 Max Drawdown | -31% | -1% | -25% | -1% | -2% | -15% | -12% | <=== | |
[1] Cumulative total returns since the beginning of 2020
[2] 2025 data is for the year up to 9/17/2025 (YTD)
[3] Win Rate = % of calendar months in which monthly returns were positive
[4] Max drawdown represents maximum peak-to-trough decline within a year
No matter how good the numbers, stock investment is never a smooth ride. There is a risk you must factor in. Read KLAC Dip Buyer Analyses and LRCX Dip Buyer Analyses to see how these stocks have fallen and recovered in the past.