KLA Corporation (KLAC)vsUltra Clean Holdings Inc (UCTT)
KLAC
KLA Corporation
$1,543.82
-1.43%
TECHNOLOGY · Cap: $205.79B
UCTT
Ultra Clean Holdings Inc
$65.04
-0.35%
TECHNOLOGY · Cap: $2.97B
Smart Verdict
WallStSmart Research — data-driven comparison
KLA Corporation generates 520% more annual revenue ($12.74B vs $2.05B). KLAC leads profitability with a 35.8% profit margin vs -8.8%. UCTT appears more attractively valued with a PEG of 0.86. KLAC earns a higher WallStSmart Score of 70/100 (B).
KLAC
Strong Buy70
out of 100
Grade: B
UCTT
Hold39
out of 100
Grade: F
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+3.9%
Fair Value
$1605.71
Current Price
$1543.82
$61.89 discount
Intrinsic value data unavailable for UCTT.
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
Growing faster than its price suggests
Areas to Watch
Expensive relative to growth rate
Elevated debt levels
Premium valuation, high expectations priced in
Trading at 37.0x book value
Operating margin of 2.1%
Weak financial health signals
ROE of -20.0% — below average capital efficiency
Revenue declined 10.0%
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 : UCTT
The strongest argument for UCTT centers on PEG Ratio. PEG of 0.86 suggests the stock is reasonably priced for its 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 : UCTT
The primary concerns for UCTT are Operating Margin, Piotroski F-Score, Return on Equity.
Key Dynamics to Monitor
KLAC profiles as a mature stock while UCTT is a turnaround play — different risk/reward profiles.
UCTT carries more volatility with a beta of 1.88 — expect wider price swings.
KLAC is growing revenue faster at 7.2% — 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 39/100), backed by strong 35.8% margins. Both earn "Strong Buy" and "Hold" 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 →Ultra Clean Holdings Inc
TECHNOLOGY · SEMICONDUCTOR EQUIPMENT & MATERIALS · USA
Ultra Clean Holdings, Inc. designs, designs and manufactures production tools, modules and subsystems for the semiconductor and display capital equipment markets in the United States and internationally. The company is headquartered in Hayward, California.
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