Lam Research Corporation (LRCX) vs Microsoft Corporation (MSFT)
A side-by-side comparison of Lam Research Corporation and Microsoft Corporation across valuation, profitability, dividends, and growth — built entirely from reported fundamentals, as of July 28, 2026. Differences are shown without an overall score or investment verdict.
LRCX
Lam Research Corporation
$269.61TechnologyDelayed quote: Jul 28, 2026, 4:00 PM EDT
MSFT
Microsoft Corporation
$393.35TechnologyDelayed quote: Jul 28, 2026, 4:00 PM EDT
Total return — LRCX vs MSFT
growth of $100 · dividends reinvested · last 30yLRCX +45665.6%MSFT +7530.9%LRCX compounded faster
Log scale — wide-divergence pair
LRCX MSFT
LRCX vs MSFT: by the numbers
- •MSFT is the larger company ($2.92T vs $337.17B market cap).
- •MSFT trades at the lower trailing earnings multiple (23.16 vs 55.02 P/E), one valuation lens rather than an overall verdict.
- •MSFT converts more revenue to profit (39.34% vs 30.94% net margin).
- •MSFT grew revenue faster over the past five years (14.75% vs 10.31% CAGR).
- •MSFT pays the higher dividend yield (0.91% vs 0.36%).
Metrics side by side
Valuation
| Metric | LRCX | MSFT |
|---|---|---|
| P/E ratio | 55.02 | 23.16 |
| Forward P/E | 51.20 | 22.87 |
| P/S ratio | 16.91 | 9.10 |
| P/B ratio | 34.64 | 6.99 |
| PEG ratio | 0.54 | 2.34 |
| EV / EBITDA | 46.59 | 15.53 |
| FCF yield | 1.76% | 2.52% |
Profitability
| Metric | LRCX | MSFT |
|---|---|---|
| Gross margin | 49.98% | 68.31% |
| Operating margin | 34.26% | 46.80% |
| Net margin | 30.94% | 39.34% |
| ROE | 63.38% | 30.22% |
| ROIC | 34.00% | 21.63% |
Dividends
| Metric | LRCX | MSFT |
|---|---|---|
| Dividend yield | 0.36% | 0.91% |
| Payout ratio | 24.94% | 25.99% |
Growth (annualized)
| Metric | LRCX | MSFT |
|---|---|---|
| Revenue CAGR (5Y) | 10.31% | 14.75% |
| EPS CAGR (5Y) | 21.72% | 18.68% |
| FCF CAGR (5Y) | 19.28% | 6.27% |
| Total return CAGR (5Y) | 37.60% | 7.19% |
Frequently asked
- Which has the lower trailing P/E, LRCX or MSFT?
- MSFT has the lower trailing P/E: LRCX trades at 55.02 and MSFT at 23.16. P/E is one valuation measure and does not by itself establish which business is cheaper.
- Which has grown faster, LRCX or MSFT?
- Over the past five years, MSFT grew revenue faster — LRCX at a 10.31% CAGR versus MSFT at 14.75%.
- Does LRCX or MSFT pay a bigger dividend?
- LRCX yields 0.36% and MSFT yields 0.91% based on trailing dividends and the latest price.
- Is LRCX or MSFT more profitable?
- MSFT runs the higher net margin — LRCX at 30.94% versus MSFT at 39.34%.
- How have LRCX and MSFT total returns compared?
- Over the past 10 years, LRCX delivered 43.20% and MSFT delivered 22.86% annualized total return. Past performance doesn't predict future results.
Go deeper
Dig into the metrics
Lam Research P/E ratioMicrosoft P/E ratioLam Research dividend yieldMicrosoft dividend yieldLam Research ROEMicrosoft ROELam Research operating marginMicrosoft operating marginLam Research revenue growthMicrosoft revenue growthLam Research free cash flowMicrosoft free cash flow
Lam Research & Microsoft appear in these rankings
Highest ROE StocksHighest ROIC StocksHighest Operating Margin StocksHighest 10-Year Total Return Stocks
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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 July 28, 2026.