KLA Corporation (KLAC)vsTenet Healthcare Corporation (THC)
KLAC
KLA Corporation
$1,543.82
-1.43%
TECHNOLOGY · Cap: $205.79B
THC
Tenet Healthcare Corporation
$200.04
+0.21%
HEALTHCARE · Cap: $17.58B
Smart Verdict
WallStSmart Research — data-driven comparison
Tenet Healthcare Corporation generates 67% more annual revenue ($21.31B vs $12.74B). KLAC leads profitability with a 35.8% profit margin vs 6.6%. KLAC appears more attractively valued with a PEG of 1.66. KLAC earns a higher WallStSmart Score of 70/100 (B).
KLAC
Strong Buy70
out of 100
Grade: B
THC
Strong Buy66
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
+68.8%
Fair Value
$724.93
Current Price
$200.04
$524.89 discount
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
Every $100 of equity generates 27 in profit
Attractively priced relative to earnings
Earnings expanding 27.6% YoY
Areas to Watch
Expensive relative to growth rate
Elevated debt levels
Premium valuation, high expectations priced in
Trading at 37.0x book value
Distress zone — elevated risk
6.6% margin — thin
Expensive relative to growth rate
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 : THC
The strongest argument for THC centers on Return on Equity, P/E Ratio, EPS Growth.
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 : THC
The primary concerns for THC are Altman Z-Score, Profit Margin, PEG Ratio.
Key Dynamics to Monitor
KLAC profiles as a mature stock while THC is a value play — different risk/reward profiles.
KLAC carries more volatility with a beta of 1.45 — expect wider price swings.
THC is growing revenue faster at 8.9% — 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 66/100), backed by strong 35.8% margins. THC offers better value entry with a 68.8% margin of safety. 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 →Tenet Healthcare Corporation
HEALTHCARE · MEDICAL CARE FACILITIES · USA
Tenet Healthcare Corporation is a diversified health services company. The company is headquartered in Dallas, Texas.
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