Compare Stocks › LRCX vs MS
Lam Research Corporation (LRCX) vs Morgan Stanley (MS)
LRCX
Lam Research Corporation
$233.99
VS
MS
Morgan Stanley
$158.55
Rewards
LRCX
- ★Lam Research Corporation has maintained ROIC above 15% for 4 consecutive years, indicating a durable competitive advantage.
- ★Lam Research Corporation scores 81/100 on the Economic Moat Score (Wide Moat), with margin stability as the strongest competitive dimension.
- ★Free cash flow has grown at a 28.5% CAGR over the past 4 years, demonstrating strong earnings power growth.
MS
- ★Gross margin of 87.1% indicates strong pricing power — typical of businesses with significant intellectual property or brand strength.
- ★Each dollar of retained earnings has created $6.65 of market value — management is an exceptional capital allocator.
- ★PEG ratio of 0.75 suggests the stock is undervalued relative to its growth rate — paying less than 1x for each unit of earnings growth.
Risks
LRCX
- ⚠Buybacks have been poorly timed — 3 out of 4 years involved repurchases at relatively expensive valuations.
- ⚠FCF yield of 1.6% is below 3%, meaning the market is pricing in substantial future growth to justify the current price.
- ⚠Trailing P/E of 48.0x is 88% above the historical average of 25.5x — the stock trades at a premium to its own history.
MS
- ⚠High leverage (4.56x debt/equity) combined with thin interest coverage (-1.0x) poses financial risk.
- ⚠Altman Z-Score of 0.29 places the company in the distress zone — financial patterns resemble those of companies that experienced bankruptcy.
- ⚠7 insider sales totaling $25.2M with no purchases in the past 3 months — insiders are reducing their exposure.
Key Valuation Metrics
Learn more →LRCX
MS
Valuation
$4.82B
Free Cash Flow
N/A
1.64%
FCF Yield
N/A
48.05
Trailing P/E
15.53
33.89
Forward P/E
12.89
Quality & Moat
37.60%
ROIC
3.43%
52.81%
ROE
14.42%
49.80%
Gross Margin
87.06%
1.30
PEG Ratio
0.75
Balance Sheet Safety
0.44
Debt / Equity
4.56
N/A
Interest Coverage
N/A
-0.23
Net Debt / EBITDA
N/A
0.44%
Dividend Yield
2.52%
LRCX: 3Ties: 1MS: 5
LRCXMS
Historical Fundamentals
Learn more →LRCX
Price ÷ Earnings Per Share — how many years of current earnings you're paying for at today's price. Lower P/E may indicate undervaluation.
MS
Price ÷ Earnings Per Share — how many years of current earnings you're paying for at today's price. Lower P/E may indicate undervaluation.
Price ÷ Earnings Per Share — how many years of current earnings you're paying for at today's price. Lower P/E may indicate undervaluation.
$1 Retained Earnings Test
Learn more →LRCX
$15.03
created per $1 retained over 3 years
Exceptional Value Creator
Σ Retained
$10.62B
Δ Market Cap
+$159.61B
Buffett's "$1 Test": For every $1 of earnings retained, has management created at least $1 of market value?
> $1 created per $1 retained = Value Creator · < $1 created = Value Destroyer
> $1 created per $1 retained = Value Creator · < $1 created = Value Destroyer
MS
$6.65
created per $1 retained over 3 years
Exceptional Value Creator
Σ Retained
$20.84B
Δ Market Cap
+$138.59B
Buffett's "$1 Test": For every $1 of earnings retained, has management created at least $1 of market value?
> $1 created per $1 retained = Value Creator · < $1 created = Value Destroyer
> $1 created per $1 retained = Value Creator · < $1 created = Value Destroyer
Buffett's "$1 Test": For every $1 of earnings retained, has management created at least $1 of market value?
> $1 created per $1 retained = Value Creator · < $1 created = Value Destroyer
Discounted Cash Flow (DCF) Analysis
Learn more →LRCX
24.9% Margin of Safety
Price is 24.9% below estimated fair value
Current Price: $233.99
Strongly undervalued
Undervalued
Fairly valued
Overvalued
Strongly overvalued
Fair Value: $311.51
Strongly undervalued
Undervalued
Fairly valued
Overvalued
Strongly overvalued
MS
45.5% Margin of Safety
Price is 45.5% below estimated fair value
Current Price: $158.55
Strongly undervalued
Undervalued
Fairly valued
Overvalued
Strongly overvalued
Fair Value: $290.92
Strongly undervalued
Undervalued
Fairly valued
Overvalued
Strongly overvalued
Reverse DCF — Market-Implied Growth
Learn more →LRCX
What growth rate is the market pricing in at $234?
+21.4%
Market-Implied Owner Earnings Growth
Standard FCF implies +22.9%
The market implies +21.4% Owner Earnings growth, above historical trends.
Standard FCF implies a demanding +22.9%, reflecting heavy growth investment.
MS
Requires positive FCF to compute implied growth rate.
Economic Moat Score
Learn more →LRCX
81/100
Wide Moat
70+ Wide · 40-69 Narrow · <40 None
Wide moat driven primarily by margin stability. Revenue Predictability is the area most vulnerable to competitive pressure.
Composite score measuring competitive advantage durability across four dimensions: returns above cost of capital, pricing power stability, revenue predictability, and capital efficiency. Based on 4 years of fundamental data.
MS
32/100
No Moat
70+ Wide · 40-69 Narrow · <40 None
No durable moat detected, though revenue predictability shows some competitive positioning. The business lacks consistent evidence of sustainable advantages.
Composite score measuring competitive advantage durability across four dimensions: returns above cost of capital, pricing power stability, revenue predictability, and capital efficiency. Based on 4 years of fundamental data.
Forensic Accounting
Learn more →LRCX
-2.28
Unlikely Manipulator
Above -1.78 = likely manipulator · -2.22 to -1.78 = grey zone
M-Score Trend
Beneish's 8-variable model estimates the probability of earnings manipulation. An M-Score above -1.78 signals elevated risk — companies in this range have historically been 3-5× more likely to be manipulating earnings. Scores between -2.22 and -1.78 fall in a grey zone warranting further investigation.
MS
-2.09
Possible Manipulator
Above -1.78 = likely manipulator · -2.22 to -1.78 = grey zone
M-Score Trend
Beneish's 8-variable model estimates the probability of earnings manipulation. An M-Score above -1.78 signals elevated risk — companies in this range have historically been 3-5× more likely to be manipulating earnings. Scores between -2.22 and -1.78 fall in a grey zone warranting further investigation.
Beneish's 8-variable model estimates the probability of earnings manipulation. An M-Score above -1.78 signals elevated risk — companies in this range have historically been 3-5× more likely to be manipulating earnings. Scores between -2.22 and -1.78 fall in a grey zone warranting further investigation.
Ownership Breakdown
Learn more →LRCX
Insiders 0.3%Institutions 88.8%Retail & Other 10.9%
No. of Institutional Holders3,163
High insider ownership aligns management incentives with shareholders — a key signal in Buffett-style analysis. Institutional concentration can indicate smart-money conviction but also crowding risk.
MS
Insiders 24.0%Institutions 62.7%Retail & Other 13.3%
No. of Institutional Holders3,182
High insider ownership aligns management incentives with shareholders — a key signal in Buffett-style analysis. Institutional concentration can indicate smart-money conviction but also crowding risk.
High insider ownership aligns management incentives with shareholders. Institutional concentration can indicate smart-money conviction but also crowding risk.
Insider Buying Activity
Learn more →LRCX
0
Buys (3M)
1
Buys (12M)
Total value (12M): $602.00
HARTER AVA
Officer
$602.00
@ $66.89 · 2025-04-08
Open market purchases · includes direct & indirect ownership · excludes option exercises
MS
0
Buys (3M)
1
Buys (12M)
Total value (12M): $5,630
PETERSON DOUGLAS L
Director
$5,630
@ $156.39 · 2025-10-17
Open market purchases · includes direct & indirect ownership · excludes option exercises
Open market purchases · includes direct & indirect ownership · excludes option exercises.
Insider Selling Activity
Learn more →LRCX
5
Sells (3M)
11
Sells (12M)
Total value (12M): $71.33M
BETTINGER DOUGLAS R
Chief Financial Officer
$11.21M
@ $224.03 · 2026-03-04
HARTER AVA
Officer
$333,990
@ $222.66 · 2026-03-04
BETTINGER DOUGLAS R
Chief Financial Officer
$9.28M
@ $230.22 · 2026-03-02
HARTER AVA
Officer
$930,000
@ $232.50 · 2026-03-02
BRANDT ERIC K
Director
$7.90M
@ $225.60 · 2026-02-06
ARCHER TIMOTHY M
Chief Executive Officer
$26.76M
@ $163.86 · 2025-12-17
BETTINGER DOUGLAS R
Chief Financial Officer
$6.04M
@ $150.60 · 2025-11-14
MAYER BETHANY J
Director
$4,786
@ $159.53 · 2025-11-07
MAYER BETHANY J
Director
$207,667
@ $159.99 · 2025-11-03
HARTER AVA
Officer
$1.42M
@ $157.47 · 2025-10-27
VAHEDI VAHID
Officer
$7.25M
@ $138.90 · 2025-10-13
VARADARAJAN SESHASAYEE
Officer
$9.91M
@ $90.00 · 2025-02-20
MAYER BETHANY J
Director
$124,757
@ $75.15 · 2024-11-01
CORREIA CHRISTINA
Officer
$528,929
@ $817.51 · 2024-10-01
FERNANDES NEIL J
Officer
$1.71M
@ $1056.99 · 2024-07-12
CORREIA CHRISTINA
Officer
$687,282
@ $1062.26 · 2024-07-01
ARCHER TIMOTHY M
Chief Executive Officer
$14.67M
@ $1067.12 · 2024-06-28
ARCHER TIMOTHY M
Chief Executive Officer
$6.04M
@ $1078.53 · 2024-06-28
ARCHER TIMOTHY M
Chief Executive Officer
$10.33M
@ $1070.39 · 2024-06-28
FERNANDES NEIL J
Officer
$4.65M
@ $1055.76 · 2024-06-27
SCHISLER GEORGE M
Officer
$363,284
@ $908.21 · 2024-05-03
LORD PATRICK J
Officer
$55,292
@ $921.53 · 2024-04-29
TALWALKAR ABHIJIT Y
Director
$857,330
@ $972.03 · 2024-04-01
CORREIA CHRISTINA
Officer
$628,903
@ $972.03 · 2024-04-01
Direct ownership only · excludes indirect, option exercises, planned (10b5-1) sales & derivatives
MS
7
Sells (3M)
16
Sells (12M)
Total value (12M): $62.45M
SIMKOWITZ DANIEL A
President
$6.02M
@ $182.61 · 2026-01-30
GROSSMAN ERIC F
Officer
$3.97M
@ $184.00 · 2026-01-20
CRAWLEY MANDELL L.
Officer
$1.44M
@ $183.45 · 2026-01-20
YESHAYA SHARON
Chief Financial Officer
$2.94M
@ $185.77 · 2026-01-20
SMITH CHARLES AUBREY III
Officer
$1.55M
@ $182.08 · 2026-01-20
PIZZI MICHAEL A
Officer
$3.69M
@ $184.55 · 2026-01-20
SAPERSTEIN ANDREW MICHAEL
President
$5.57M
@ $183.62 · 2026-01-20
PICK EDWARD N.
Chief Executive Officer
$16.43M
@ $164.34 · 2025-10-31
GROSSMAN ERIC F
Officer
$1.69M
@ $141.12 · 2025-07-17
SIMKOWITZ DANIEL A
President
$4.09M
@ $141.13 · 2025-07-17
SMITH CHARLES AUBREY III
Officer
$2.81M
@ $140.30 · 2025-07-17
PIZZI MICHAEL A
Officer
$2.53M
@ $140.62 · 2025-07-17
SIMKOWITZ DANIEL A
President
$3.70M
@ $127.37 · 2025-05-12
HERZ ROBERT H
Director
$95,459
@ $119.32 · 2025-05-02
SAPERSTEIN ANDREW MICHAEL
President
$4.80M
@ $120.00 · 2025-05-02
GROSSMAN ERIC F
Officer
$1.12M
@ $111.65 · 2025-04-15
CRAWLEY MANDELL L.
Officer
$1.15M
@ $138.06 · 2025-01-22
GROSSMAN ERIC F
Officer
$1.78M
@ $136.20 · 2025-01-21
SIMKOWITZ DANIEL A
President
$5.00M
@ $136.61 · 2025-01-21
AKRAM RAJA
Chief Financial Officer
$2.38M
@ $136.01 · 2025-01-21
PIZZI MICHAEL A
Officer
$2.52M
@ $136.92 · 2025-01-21
SAPERSTEIN ANDREW MICHAEL
President
$4.20M
@ $136.43 · 2025-01-21
CRAWLEY MANDELL L.
Officer
$368,375
@ $105.25 · 2024-07-26
AKRAM RAJA
Officer
$797,764
@ $106.37 · 2024-07-18
SIMKOWITZ DANIEL A
President
$4.26M
@ $106.54 · 2024-07-17
HERZ ROBERT H
Director
$106,621
@ $106.62 · 2024-07-17
CRAWLEY MANDELL L.
Officer
$692,663
@ $99.61 · 2024-05-14
GORMAN JAMES P
Officer and Director
$9.02M
@ $90.21 · 2024-04-18
SMITH CHARLES AUBREY III
Officer
$1.01M
@ $90.09 · 2024-04-17
Direct ownership only · excludes indirect, option exercises, planned (10b5-1) sales & derivatives
Direct ownership only · excludes indirect, option exercises, planned (10b5-1) sales & derivatives.
🎭 Mr. Market's Mood
Learn more →LRCX
😐Neutral(57/100)
"Market is pricing this stock without strong emotion in either direction"
Composite sentiment score based on 6 market signals. Inspired by Buffett's "Mr. Market" allegory — fear = potential opportunity, greed = potential risk. Must be used alongside fundamental analysis, not in isolation.
MS
😐Neutral(48/100)
"Market is pricing this stock without strong emotion in either direction"
Composite sentiment score based on 6 market signals. Inspired by Buffett's "Mr. Market" allegory — fear = potential opportunity, greed = potential risk. Must be used alongside fundamental analysis, not in isolation.
Composite sentiment score based on market signals. Inspired by Buffett’s "Mr. Market" allegory — fear = potential opportunity, greed = potential risk. Must be used alongside fundamental analysis, not in isolation.
⚖️ Buffett Signal
Learn more →LRCX
⚪Awaiting DCF Data
The Buffett Signal cross-references market sentiment with DCF valuation. Configure the DCF Analysis above to generate a signal.
DCF Margin of Safety: N/AMr. Market's Mood: Neutral (57)
MS
⚪Awaiting DCF Data
The Buffett Signal cross-references market sentiment with DCF valuation. Configure the DCF Analysis above to generate a signal.
DCF Margin of Safety: N/AMr. Market's Mood: Neutral (48)