KLA Corporation (KLAC)vsNova Ltd (NVMI)
KLAC
KLA Corporation
$1,543.82
-1.43%
TECHNOLOGY · Cap: $205.79B
NVMI
Nova Ltd
$481.28
-0.85%
TECHNOLOGY · Cap: $15.30B
Smart Verdict
WallStSmart Research — data-driven comparison
KLA Corporation generates 1347% more annual revenue ($12.74B vs $880.58M). KLAC leads profitability with a 35.8% profit margin vs 29.4%. NVMI appears more attractively valued with a PEG of 1.46. KLAC earns a higher WallStSmart Score of 70/100 (B).
KLAC
Strong Buy70
out of 100
Grade: B
NVMI
Strong Buy68
out of 100
Grade: B-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+3.9%
Fair Value
$1605.71
Current Price
$1543.82
$61.89 discount
Margin of Safety
-40.5%
Fair Value
$338.56
Current Price
$481.28
$142.72 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
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
Safe zone — low bankruptcy risk
Every $100 of equity generates 23 in profit
Keeps 29 of every $100 in revenue as profit
Strong operational efficiency at 27.7%
Earnings expanding 22.4% YoY
Areas to Watch
Expensive relative to growth rate
Elevated debt levels
Premium valuation, high expectations priced in
Trading at 37.0x book value
Trading at 11.6x book value
Premium valuation, high expectations priced in
Comparative Analysis Report
WallStSmart ResearchBull 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%.
Bull Case : NVMI
The strongest argument for NVMI centers on Altman Z-Score, Return on Equity, Profit Margin. Profitability is solid with margins at 29.4% and operating margin at 27.7%. Revenue growth of 14.3% demonstrates continued momentum.
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.
Bear Case : NVMI
The primary concerns for NVMI are Price/Book, P/E Ratio. A P/E of 60.6x leaves little room for execution misses.
Key Dynamics to Monitor
NVMI carries more volatility with a beta of 1.83 — expect wider price swings.
NVMI is growing revenue faster at 14.3% — sustainability is the question.
KLAC generates stronger free cash flow (1.3B), providing more financial flexibility.
Monitor SEMICONDUCTOR EQUIPMENT & MATERIALS industry trends, competitive dynamics, and regulatory changes.
Bottom Line
KLAC scores higher overall (70/100 vs 68/100), backed by strong 35.8% margins. Both earn "Strong Buy" and "Strong Buy" ratings respectively — the choice depends on your investment horizon and risk tolerance.
This analysis is generated from publicly available financial data. Not financial advice.
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.
Visit Website →Nova Ltd
TECHNOLOGY · SEMICONDUCTOR EQUIPMENT & MATERIALS · USA
Nova Measuring Instruments Ltd. designs, develops, produces, and sells process control systems used in semiconductor manufacturing in Israel, Taiwan, the United States, China, Korea, and internationally. The company is headquartered in Rehovot, Israel.
Visit Website →Compare with Other SEMICONDUCTOR EQUIPMENT & MATERIALS Stocks
Want to dig deeper into these stocks?