KLA Corporation (KLAC)vsTeradyne Inc (TER)
KLAC
KLA Corporation
$198.11
+2.53%
TECHNOLOGY · Cap: $255.31B
TER
Teradyne Inc
$379.31
-1.45%
TECHNOLOGY · Cap: $63.09B
Smart Verdict
WallStSmart Research — data-driven comparison
KLA Corporation generates 204% more annual revenue ($13.58B vs $4.46B). KLAC leads profitability with a 35.6% profit margin vs 25.8%. TER appears more attractively valued with a PEG of 0.94. TER earns a higher WallStSmart Score of 79/100 (B+).
KLAC
Strong Buy68
out of 100
Grade: B-
TER
Strong Buy79
out of 100
Grade: B+
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Mega-cap, among the largest globally
Every $100 of equity generates 80 in profit
Keeps 36 of every $100 in revenue as profit
Strong operational efficiency at 42.5%
15.2% revenue growth
Strong operational efficiency at 33.2%
Revenue surging 103.9% year-over-year
Earnings expanding 385.8% YoY
Conservative balance sheet, low leverage
Generating 506.4B in free cash flow
Large-cap with strong market position
Areas to Watch
Expensive relative to growth rate
Elevated debt levels
Premium valuation, high expectations priced in
Trading at 44.4x book value
Trading at 17.3x book value
ROE of 0.0% — below average capital efficiency
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 35.6% and operating margin at 42.5%. Revenue growth of 15.2% demonstrates continued momentum.
Bull Case : TER
The strongest argument for TER centers on Operating Margin, Revenue Growth, EPS Growth. Profitability is solid with margins at 25.8% and operating margin at 33.2%. Revenue growth of 103.9% demonstrates continued momentum.
Bear Case : KLAC
The primary concerns for KLAC are PEG Ratio, Debt/Equity, P/E Ratio. A P/E of 50.0x leaves little room for execution misses.
Bear Case : TER
The primary concerns for TER are Price/Book, Return on Equity, P/E Ratio. A P/E of 55.4x leaves little room for execution misses.
Key Dynamics to Monitor
TER carries more volatility with a beta of 1.79 — expect wider price swings.
TER is growing revenue faster at 103.9% — sustainability is the question.
TER generates stronger free cash flow (506.4B), providing more financial flexibility.
Monitor SEMICONDUCTOR EQUIPMENT & MATERIALS industry trends, competitive dynamics, and regulatory changes.
Bottom Line
TER scores higher overall (79/100 vs 68/100), backed by strong 25.8% margins and 103.9% revenue growth. 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 →Teradyne Inc
TECHNOLOGY · SEMICONDUCTOR EQUIPMENT & MATERIALS · USA
Teradyne, Inc. is an American automatic test equipment (ATE) designer and manufacturer based in North Reading, Massachusetts.
Visit Website →Compare with Other SEMICONDUCTOR EQUIPMENT & MATERIALS Stocks
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