Ambarella Inc (AMBA)vsKLA Corporation (KLAC)
AMBA
Ambarella Inc
$54.09
-0.81%
TECHNOLOGY · Cap: $2.35B
KLAC
KLA Corporation
$1,543.82
-1.43%
TECHNOLOGY · Cap: $205.79B
Smart Verdict
WallStSmart Research — data-driven comparison
KLA Corporation generates 3162% more annual revenue ($12.74B vs $390.70M). KLAC leads profitability with a 35.8% profit margin vs -19.4%. KLAC appears more attractively valued with a PEG of 1.66. KLAC earns a higher WallStSmart Score of 70/100 (B).
AMBA
Avoid35
out of 100
Grade: F
KLAC
Strong Buy70
out of 100
Grade: B
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Intrinsic value data unavailable for AMBA.
Margin of Safety
+3.9%
Fair Value
$1605.71
Current Price
$1543.82
$61.89 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Conservative balance sheet, low leverage
Revenue surging 20.1% year-over-year
Mega-cap, among the largest globally
Every $100 of equity generates 101 in profit
Keeps 36 of every $100 in revenue as profit
Strong operational efficiency at 41.3%
Earnings expanding 40.9% YoY
Generating 1.3B in free cash flow
Areas to Watch
0.0% earnings growth
Weak financial health signals
Expensive relative to growth rate
ROE of -13.1% — below average capital efficiency
Expensive relative to growth rate
Elevated debt levels
Premium valuation, high expectations priced in
Trading at 37.0x book value
Comparative Analysis Report
WallStSmart ResearchBull Case : AMBA
The strongest argument for AMBA centers on Debt/Equity, Revenue Growth. Revenue growth of 20.1% demonstrates continued momentum.
Bull Case : KLAC
The strongest argument for KLAC centers on Market Cap, Return on Equity, Profit Margin. Profitability is solid with margins at 35.8% and operating margin at 41.3%.
Bear Case : AMBA
The primary concerns for AMBA are EPS Growth, Piotroski F-Score, PEG Ratio.
Bear Case : KLAC
The primary concerns for KLAC are PEG Ratio, Debt/Equity, P/E Ratio. A P/E of 45.6x leaves little room for execution misses.
Key Dynamics to Monitor
AMBA profiles as a growth stock while KLAC is a mature play — different risk/reward profiles.
AMBA carries more volatility with a beta of 2.00 — expect wider price swings.
AMBA is growing revenue faster at 20.1% — sustainability is the question.
KLAC generates stronger free cash flow (1.3B), providing more financial flexibility.
Bottom Line
KLAC scores higher overall (70/100 vs 35/100), backed by strong 35.8% margins. Both earn "Strong Buy" and "Avoid" ratings respectively — the choice depends on your investment horizon and risk tolerance.
This analysis is generated from publicly available financial data. Not financial advice.
Ambarella Inc
TECHNOLOGY · SEMICONDUCTOR EQUIPMENT & MATERIALS · USA
Ambarella, Inc. develops semiconductor video solutions that enable high definition (HD) and ultra HD compression, image processing, and deep neural network processing globally. The company is headquartered in Santa Clara, California.
KLA Corporation
TECHNOLOGY · SEMICONDUCTOR EQUIPMENT & MATERIALS · USA
KLA Corporation is a capital equipment company based in Milpitas, California. It supplies process control and yield management systems for the semiconductor industry and other related nanoelectronics industries. The company's products and services are intended for all phases of wafer, reticle, integrated circuit (IC) and packaging production, from research and development to final volume manufacturing.
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