TER’s 18% One Week Pop Begs The Question: Is LRCX Better Instead?
Lam Research (LRCX) offers superior revenue growth across key periods, better profitability, and relatively lower valuation vs Teradyne (TER), suggesting you may be better off investing in LRCX
- LRCX’s quarterly revenue growth was 33.6%, vs. TER’s -10.7%.
- In addition, its Last 12 Months revenue growth came in at 23.7%, ahead of TER’s 4.6%.
- LRCX leads on profitability over both periods – LTM margin of 32.0% and 3-year average of 30.2%.
TER provides test solutions for semiconductor, system, industrial automation, and wireless device development, including smartphones, tablets, laptops, peripherals, and IoT devices. LRCX designs, manufactures, and services semiconductor processing equipment for integrated circuit fabrication, serving the global semiconductor industry including the US, Asia, and Europe.
Valuation & Performance Overview
| TER | LRCX | Preferred | |
|---|---|---|---|
| Valuation | |||
| P/EBIT Ratio | 39.6 | 28.4 | LRCX |
| Revenue Growth | |||
| Last Quarter | -10.7% | 33.6% | LRCX |
| Last 12 Months | 4.6% | 23.7% | LRCX |
| Last 3 Year Average | -5.8% | 3.5% | LRCX |
| Operating Margins | |||
| Last 12 Months | 19.2% | 32.0% | LRCX |
| Last 3 Year Average | 20.2% | 30.2% | LRCX |
| Momentum | |||
| Last 3 Year Return | 72.3% | 257.0% | 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: TER Revenue Comparison | LRCX Revenue Comparison
See more margin details: TER Operating Income Comparison | LRCX Operating Income Comparison
But do these numbers tell the full story? Read Buy or Sell LRCX Stock to see if Lam Research’s edge holds up under the hood or if Teradyne still has cards to play (see Buy or Sell TER Stock).
That is one way to look at stocks. Trefis High Quality Portfolio evaluates much more, and is designed to reduce stock-specific risk while giving upside exposure
Historical Market Performance
| 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | Total [1] | Avg | Best | |
|---|---|---|---|---|---|---|---|---|---|
| Returns | |||||||||
| TER Return | 77% | 37% | -46% | 25% | 17% | 8% | 80% | ||
| LRCX Return | 64% | 54% | -41% | 89% | -7% | 84% | 364% | <=== | |
| S&P 500 Return | 16% | 27% | -19% | 24% | 23% | 13% | 106% | ||
| Monthly Win Rates [3] | |||||||||
| TER Win Rate | 58% | 58% | 50% | 58% | 67% | 50% | 57% | ||
| LRCX Win Rate | 67% | 67% | 33% | 58% | 42% | 50% | 53% | ||
| S&P 500 Win Rate | 58% | 75% | 42% | 67% | 75% | 62% | 63% | <=== | |
| Max Drawdowns [4] | |||||||||
| TER Max Drawdown | -35% | -13% | -56% | -5% | -12% | -46% | -28% | ||
| LRCX Max Drawdown | -36% | 0% | -56% | -1% | -10% | -18% | -20% | ||
| 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 9/23/2025 (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 LRCX Dip Buyer Analyses and TER Dip Buyer Analyses to see how these stocks have fallen and recovered in the past.