KLA Corporation (KLAC)vsTeradyne Inc (TER)
KLAC
KLA Corporation
$1,482.36
+1.97%
TECHNOLOGY · Cap: $194.64B
TER
Teradyne Inc
$300.07
+0.22%
TECHNOLOGY · Cap: $46.70B
Smart Verdict
WallStSmart Research — data-driven comparison
KLA Corporation generates 300% more annual revenue ($12.74B vs $3.19B). KLAC leads profitability with a 35.8% profit margin vs 17.4%. KLAC appears more attractively valued with a PEG of 1.60. TER earns a higher WallStSmart Score of 70/100 (B).
KLAC
Strong Buy69
out of 100
Grade: B-
TER
Strong Buy70
out of 100
Grade: B
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+7.9%
Fair Value
$1608.52
Current Price
$1482.36
$126.16 discount
Margin of Safety
-98.5%
Fair Value
$161.93
Current Price
$300.07
$138.14 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Every $100 of equity generates 101 in profit
Keeps 36 of every $100 in revenue as profit
Strong operational efficiency at 41.3%
Large-cap with strong market position
Earnings expanding 40.9% YoY
Generating 1.3B in free cash flow
Strong operational efficiency at 30.3%
Revenue surging 43.9% year-over-year
Earnings expanding 81.4% YoY
Conservative balance sheet, low leverage
Areas to Watch
Expensive relative to growth rate
Elevated debt levels
Premium valuation, high expectations priced in
Trading at 35.6x book value
Expensive relative to growth rate
Trading at 16.8x book value
Premium valuation, high expectations priced in
Comparative Analysis Report
WallStSmart ResearchBull Case : KLAC
The strongest argument for KLAC centers on Return on Equity, Profit Margin, Operating Margin. Profitability is solid with margins at 35.8% and operating margin at 41.3%.
Bull Case : TER
The strongest argument for TER centers on Operating Margin, Revenue Growth, EPS Growth. Profitability is solid with margins at 17.4% and operating margin at 30.3%. Revenue growth of 43.9% demonstrates continued momentum.
Bear Case : KLAC
The primary concerns for KLAC are PEG Ratio, Debt/Equity, P/E Ratio. A P/E of 43.1x leaves little room for execution misses.
Bear Case : TER
The primary concerns for TER are PEG Ratio, Price/Book, P/E Ratio. A P/E of 86.2x leaves little room for execution misses.
Key Dynamics to Monitor
KLAC profiles as a mature stock while TER is a growth play — different risk/reward profiles.
TER carries more volatility with a beta of 1.80 — expect wider price swings.
TER is growing revenue faster at 43.9% — sustainability is the question.
KLAC generates stronger free cash flow (1.3B), providing more financial flexibility.
Bottom Line
TER scores higher overall (70/100 vs 69/100), backed by strong 17.4% margins and 43.9% 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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