Applied Materials Inc (AMAT)vsKLA Corporation (KLAC)
AMAT
Applied Materials Inc
$453.01
+4.08%
TECHNOLOGY · Cap: $465.09B
KLAC
KLA Corporation
$1,929.20
+8.73%
TECHNOLOGY · Cap: $334.96B
Smart Verdict
WallStSmart Research — data-driven comparison
Applied Materials Inc generates 122% more annual revenue ($29.02B vs $13.10B). KLAC leads profitability with a 35.7% profit margin vs 29.3%. AMAT appears more attractively valued with a PEG of 1.89. AMAT earns a higher WallStSmart Score of 72/100 (B).
AMAT
Strong Buy72
out of 100
Grade: B
KLAC
Strong Buy66
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
Strong operational efficiency at 31.9%
Safe zone — low bankruptcy risk
Keeps 29 of every $100 in revenue as profit
Conservative balance sheet, low leverage
Mega-cap, among the largest globally
Every $100 of equity generates 80 in profit
Keeps 36 of every $100 in revenue as profit
Strong operational efficiency at 41.2%
Areas to Watch
Expensive relative to growth rate
Trading at 15.0x book value
Premium valuation, high expectations priced in
Elevated debt levels
Expensive relative to growth rate
Premium valuation, high expectations priced in
Trading at 432.6x book value
Comparative Analysis Report
WallStSmart ResearchBull Case : AMAT
The strongest argument for AMAT centers on Market Cap, Return on Equity, Operating Margin. Profitability is solid with margins at 29.3% and operating margin at 31.9%. Revenue growth of 11.4% 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 35.7% and operating margin at 41.2%. Revenue growth of 11.5% demonstrates continued momentum.
Bear Case : AMAT
The primary concerns for AMAT are PEG Ratio, Price/Book, P/E Ratio. A P/E of 55.3x leaves little room for execution misses.
Bear Case : KLAC
The primary concerns for KLAC are Debt/Equity, PEG Ratio, P/E Ratio. A P/E of 72.4x leaves little room for execution misses.
Key Dynamics to Monitor
AMAT carries more volatility with a beta of 1.67 — expect wider price swings.
KLAC is growing revenue faster at 11.5% — sustainability is the question.
KLAC generates stronger free cash flow (622M), providing more financial flexibility.
Monitor SEMICONDUCTOR EQUIPMENT & MATERIALS industry trends, competitive dynamics, and regulatory changes.
Bottom Line
AMAT scores higher overall (72/100 vs 66/100), backed by strong 29.3% margins and 11.4% 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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