Applied Materials Inc (AMAT)vsKLA Corporation (KLAC)
AMAT
Applied Materials Inc
$464.24
+1.77%
TECHNOLOGY · Cap: $362.27B
KLAC
KLA Corporation
$188.32
+2.36%
TECHNOLOGY · Cap: $236.01B
Smart Verdict
WallStSmart Research — data-driven comparison
Applied Materials Inc generates 127% more annual revenue ($30.84B vs $13.58B). KLAC leads profitability with a 35.6% profit margin vs 30.0%. AMAT appears more attractively valued with a PEG of 0.90. AMAT earns a higher WallStSmart Score of 78/100 (B+).
AMAT
Strong Buy78
out of 100
Grade: B+
KLAC
Strong Buy68
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 36 in profit
Keeps 30 of every $100 in revenue as profit
Strong operational efficiency at 33.7%
Safe zone — low bankruptcy risk
Conservative balance sheet, low leverage
Mega-cap, among the largest globally
Every $100 of equity generates 76 in profit
Keeps 36 of every $100 in revenue as profit
Strong operational efficiency at 42.5%
15.2% revenue growth
Areas to Watch
Premium valuation, high expectations priced in
Trading at 14.4x book value
Expensive relative to growth rate
Premium valuation, high expectations priced in
Trading at 38.7x book value
Comparative Analysis Report
WallStSmart ResearchBull Case : AMAT
The strongest argument for AMAT centers on Market Cap, Return on Equity, Profit Margin. Profitability is solid with margins at 30.0% and operating margin at 33.7%. Revenue growth of 24.8% demonstrates continued momentum.
Bull 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.
Bear Case : AMAT
The primary concerns for AMAT are P/E Ratio, Price/Book.
Bear Case : KLAC
The primary concerns for KLAC are PEG Ratio, P/E Ratio, Price/Book. A P/E of 49.2x leaves little room for execution misses.
Key Dynamics to Monitor
AMAT carries more volatility with a beta of 1.60 — expect wider price swings.
AMAT is growing revenue faster at 24.8% — sustainability is the question.
AMAT generates stronger free cash flow (2.3B), providing more financial flexibility.
Monitor SEMICONDUCTOR EQUIPMENT & MATERIALS industry trends, competitive dynamics, and regulatory changes.
Bottom Line
AMAT scores higher overall (78/100 vs 68/100), backed by strong 30.0% margins and 24.8% 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.
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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