Lam Research vs MKS Instruments
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KIRA’s take AI analyst
I put Lam Research and MKS Instruments side by side, using each one’s latest annual report. Here is what stands out:
- Lam Research is the larger business, with $23.2B of revenue in fiscal 2026 against $3.9B for MKS Instruments, about 5.9 times as much.
- Lam Research grew revenue faster (26.0%, against 9.6%).
- Lam Research kept more of each dollar of sales as operating profit (35.3% operating margin, against 13.4%).
- Lam Research turned more of its sales into free cash flow (21.1% FCF margin, against 12.6%).
- Lam Research earned a higher return on the capital invested in it (77.7%, against 7.9%).
- Investors pay more for each dollar of Lam Research’s earnings: a P/E of 35.4x against 32.2x for MKS Instruments.
Who comes out ahead
Of the 11 measures where higher (or lower) is clearly better, how many each company leads.
Lam Research
LRCX
10/11
Revenue growthGross marginOperating marginNet marginFCF marginReturn on capitalReturn on equityPiotroski F-scoreNet debt / EBITDAShare count change
MKS Instruments
MKSI
1/11
5-year growth
Side by side
Best in the row
| Latest fiscal year | LRCX FY26 | MKSI FY25 |
|---|---|---|
| Size | ||
| Market cap | $298.3B | $14.7B |
| Revenue | $23.2B | $3.9B |
| Free cash flow | $4.9B | $497M |
| Net income | $7.3B | $295M |
| Growth | ||
| Revenue growth | 26.0% | 9.6% |
| 5-year growth | 9.7% | 11.0% |
| Share count change | −2.3% | 0.2% |
| Profitability | ||
| Gross margin | 50.5% | 46.7% |
| Operating margin | 35.3% | 13.4% |
| Net margin | 31.3% | 7.5% |
| FCF margin | 21.1% | 12.6% |
| Return on capital | 77.7% | 7.9% |
| Return on equity | 65.1% | 11.7% |
| Balance sheet | ||
| Net debt | −$1.9B | $3.9B |
| Net debt / EBITDA | −0.2x | 4.4x |
| Dividends and buybacks | $5.1B | $104M |
| Valuation & quality | ||
| P/E | 35.4x | 32.2x |
| Piotroski F-score | 8 | 6 |
Ten years
Revenue
Operating margin
Free cash flow
Return on capital
Each company's latest fiscal year; fiscal years end in different months. The best value in each row is highlighted where higher (or lower) is clearly better. Not investment advice.