Lam Research Corporation vs Microsoft Corporation
LRCX wins the Tale of the Tape 5–4.
🏆 Tale of the Tape
Green = winner in each category. Higher is better except P/E (lower = cheaper).
Rolling Correlation
Low correlation — excellent diversification pair.
Fundamentals
| Metric | LRCX | MSFT |
|---|---|---|
| Market Cap | $397.9B | $3.34T |
| P/E Ratio | 60.3x | 26.8x |
| Forward P/E | 40.1x | 23.3x |
| P/B | 37.59x | 8.07x |
| Dividend Yield | 0.33% | 0.81% |
| Beta | 1.82 | 1.09 |
Quantitative Metrics
| Metric | LRCX | MSFT |
|---|---|---|
| DCF Fair Value | $34.66 | $120.75 |
| DCF Upside | -87.0% | -68.6% |
| Piotroski F | 7/9 | 5/9 |
| Altman Z | 21.46 | 7.76 |
| Beneish M | -2.34 | -2.57 |
| FCF Yield | 1.65% | 2.59% |
| Net Debt/EBITDA | -0.4x | 0.1x |
| ROIC | 32.8% | 20.8% |
| WACC | 15.6% | 11.5% |
| ROIC – WACC | 17.2pp | 9.3pp |
| Gross Margin | 48.7% | 68.8% |
| Net Margin | 29.1% | 36.1% |
| Rev Growth YoY | 23.7% | 14.9% |
| Sharpe (1Y) | 2.89 | -0.11 |
| Max Drawdown 3Y | — | -33.9% |
| FCF Payout Ratio | 21% | 34% |
LRCX Price
MSFT Price
ETF Exposure
LRCX found in:
MSFT found in:
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Quant metrics computed from financial statements and 1,200+ trading days. Correlation is Pearson coefficient on daily log returns. Not investment advice.
LRCX vs MSFT: Head-to-Head Analysis
Lam Research Corporation (LRCX) and Microsoft Corporation (MSFT) represent two companies in the Technology sector. In our quantitative Tale of the Tape scoring, LRCX leads 5–4 across nine fundamental and risk metrics including profitability, valuation, capital efficiency, and financial health.
In terms of capital efficiency, LRCX generates a return on invested capital (ROIC) of 32.8% compared to MSFT's 20.8%. This suggests LRCX is more effective at deploying capital to generate shareholder returns.
The 252-day rolling correlation between LRCX and MSFT is 0.178, indicating low correlation, making them an effective diversification pair in a portfolio context.
LRCX appears in 37 ETFs tracked by SecuritiesDB, while MSFT appears in 46 ETFs. Investors holding broad-market ETFs may already have indirect exposure to both stocks.
Frequently Asked Questions
Which stock is the better investment, LRCX or MSFT?
Our quantitative analysis compares LRCX and MSFT across nine fundamental dimensions. LRCX wins the Tale of the Tape 5–4. However, stock selection depends on your individual risk tolerance, time horizon, and portfolio context. These metrics are computed from SEC filings and market data — they are not investment recommendations.
Are LRCX and MSFT correlated?
The 252-day correlation between LRCX and MSFT is 0.178. They have low correlation, offering good diversification.
How is the Tale of the Tape scored?
The Tale of the Tape compares both stocks across nine categories: profitability (net margin), valuation (P/E), efficiency (ROIC), health (Piotroski F-Score), safety (Altman Z-Score), growth (revenue YoY), risk (Sharpe ratio), leverage (debt-to-equity), and cash generation (FCF yield). The stock that wins more categories takes the overall score. Lower P/E and lower debt-to-equity count as wins.