Applied Materials Inc (AMAT)vsKLA Corporation (KLAC)
AMAT
Applied Materials Inc
$349.47
+2.21%
TECHNOLOGY · Cap: $279.72B
KLAC
KLA Corporation
$1,482.36
+1.97%
TECHNOLOGY · Cap: $194.64B
Smart Verdict
WallStSmart Research — data-driven comparison
Applied Materials Inc generates 121% more annual revenue ($28.21B vs $12.74B). KLAC leads profitability with a 35.8% profit margin vs 27.8%. KLAC appears more attractively valued with a PEG of 1.60. KLAC earns a higher WallStSmart Score of 69/100 (B-).
AMAT
Buy64
out of 100
Grade: C+
KLAC
Strong Buy69
out of 100
Grade: B-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+23.2%
Fair Value
$465.19
Current Price
$349.47
$115.72 discount
Margin of Safety
+7.9%
Fair Value
$1608.52
Current Price
$1482.36
$126.16 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Mega-cap, among the largest globally
Every $100 of equity generates 39 in profit
Earnings expanding 75.2% YoY
Safe zone — low bankruptcy risk
Keeps 28 of every $100 in revenue as profit
Strong operational efficiency at 29.9%
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
Areas to Watch
Expensive relative to growth rate
Premium valuation, high expectations priced in
Trading at 12.8x book value
Revenue declined 2.1%
Expensive relative to growth rate
Elevated debt levels
Premium valuation, high expectations priced in
Trading at 35.6x book value
Comparative Analysis Report
WallStSmart ResearchBull Case : AMAT
The strongest argument for AMAT centers on Market Cap, Return on Equity, EPS Growth. Profitability is solid with margins at 27.8% and operating margin at 29.9%.
Bull 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%.
Bear Case : AMAT
The primary concerns for AMAT are PEG Ratio, P/E Ratio, Price/Book.
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.
Key Dynamics to Monitor
AMAT profiles as a declining stock while KLAC is a mature play — different risk/reward profiles.
AMAT carries more volatility with a beta of 1.63 — 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 (69/100 vs 64/100), backed by strong 35.8% margins. AMAT offers better value entry with a 23.2% margin of safety. Both earn "Strong Buy" and "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.
Applied Materials Inc
TECHNOLOGY · SEMICONDUCTOR EQUIPMENT & MATERIALS · USA
Applied Materials, Inc. is an American corporation that supplies equipment, services and software for the manufacture of semiconductor (integrated circuit) chips for electronics, flat panel displays for computers, smartphones and televisions, and solar products. The company also supplies equipment to produce coatings for flexible electronics, packaging and other applications. The company is headquartered in Santa Clara, California, in Silicon Valley.
Visit Website →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 →Compare with Other SEMICONDUCTOR EQUIPMENT & MATERIALS Stocks
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