International Business Machines Corporation (IBM) vs Lam Research Corporation (LRCX)
IBM leads on 9 of 17 compared metrics.
A side-by-side comparison of International Business Machines Corporation and Lam Research Corporation across valuation, profitability, dividends, and growth — built entirely from reported fundamentals, as of June 14, 2026. The ● marks the stronger figure on each row (cheaper multiple, higher margin/return).
IBM
International Business Machines Corporation
$272.24Technology
LRCX
Lam Research Corporation
$366.81Technology
Total return — IBM vs LRCX
growth of $100 · last 30yIBM +1021.7%LRCX +35861.8%LRCX compounded faster
Log scale — wide-divergence pair
IBM LRCX
IBM vs LRCX: by the numbers
- •LRCX is the larger company ($458.72B vs $255.87B market cap).
- •IBM trades at the lower earnings multiple (24.07 vs 69.21 P/E).
- •LRCX converts more revenue to profit (30.94% vs 15.61% net margin).
- •LRCX grew revenue faster over the past five years (10.31% vs -0.09% CAGR).
- •IBM pays the higher dividend yield (2.47% vs 0.28%).
Which is better, IBM or LRCX?
Metric tally: IBM 9 · LRCX 8It depends on what you're optimizing for:
ValueIBM(lower P/E)
GrowthLRCX(faster 5Y revenue CAGR)
IncomeIBM(higher dividend yield)
QualityLRCX(higher ROIC)
Valuation
| Metric | IBM | LRCX |
|---|---|---|
| P/E ratio | 24.07● | 69.21 |
| Forward P/E | 20.33● | 45.79 |
| P/S ratio | 3.76● | 21.27 |
| P/B ratio | 7.86● | 43.57 |
| PEG ratio | 0.35● | 0.54 |
| EV / EBITDA | 19.49● | 57.60 |
| FCF yield | 5.05%● | 1.40% |
Profitability
| Metric | IBM | LRCX |
|---|---|---|
| Gross margin | 58.97%● | 49.98% |
| Operating margin | 16.36% | 34.26%● |
| Net margin | 15.61% | 30.94%● |
| ROE | 32.61% | 63.38%● |
| ROIC | 8.57% | 34.00%● |
Dividends
| Metric | IBM | LRCX |
|---|---|---|
| Dividend yield | 2.47%● | 0.28% |
| Payout ratio | 59.24% | 24.22% |
Growth (annualized)
| Metric | IBM | LRCX |
|---|---|---|
| Revenue CAGR (5Y) | -0.09% | 10.31%● |
| EPS CAGR (5Y) | 12.59% | 21.72%● |
| FCF CAGR (5Y) | -3.35% | 19.28%● |
| Total return CAGR (5Y) | 18.04% | 43.19%● |
Frequently asked
- Which is better, IBM or LRCX?
- It depends on your goal. value: IBM (lower P/E); growth: LRCX (faster 5Y revenue CAGR); income: IBM (higher dividend yield); quality: LRCX (higher ROIC). Across all compared metrics, IBM leads 9 to 8.
- Is IBM or LRCX cheaper?
- On trailing earnings, IBM is cheaper: IBM trades at a 24.07 P/E and LRCX at 69.21.
- Which has grown faster, IBM or LRCX?
- Over the past five years, LRCX grew revenue faster — IBM at a -0.09% CAGR versus LRCX at 10.31%.
- Does IBM or LRCX pay a bigger dividend?
- IBM yields 2.47% and LRCX yields 0.28% based on trailing dividends and the latest price.
- Is IBM or LRCX more profitable?
- LRCX runs the higher net margin — IBM at 15.61% versus LRCX at 30.94%.
- Which has been the better investment, IBM or LRCX?
- Over the past 10-year, LRCX delivered the higher annualized total return — IBM at 11.01% versus LRCX at 48.10%. Past performance doesn't predict future results.
Go deeper
Dig into the metrics
International Business Machines P/E ratioLam Research P/E ratioInternational Business Machines dividend yieldLam Research dividend yieldInternational Business Machines ROELam Research ROEInternational Business Machines operating marginLam Research operating marginInternational Business Machines revenue growthLam Research revenue growthInternational Business Machines free cash flowLam Research free cash flow
International Business Machines & Lam Research appear in these rankings
Figures are sourced from reported fundamentals and the latest end-of-day price. This comparison is informational only and is not investment advice. Past performance does not predict future results. See our methodology. Compiled by TGMCharts Research · data verified June 14, 2026.