KLA Corporation (KLAC)vsOnto Innovation Inc (ONTO)
KLAC
KLA Corporation
$1,929.20
+0.74%
TECHNOLOGY · Cap: $267.16B
ONTO
Onto Innovation Inc
$253.24
-7.83%
TECHNOLOGY · Cap: $16.11B
Smart Verdict
WallStSmart Research — data-driven comparison
KLA Corporation generates 1171% more annual revenue ($13.10B vs $1.03B). KLAC leads profitability with a 35.7% profit margin vs 10.3%. ONTO appears more attractively valued with a PEG of 1.51. KLAC earns a higher WallStSmart Score of 66/100 (B-).
KLAC
Strong Buy66
out of 100
Grade: B-
ONTO
Hold44
out of 100
Grade: D
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
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%
Safe zone — low bankruptcy risk
Areas to Watch
Expensive relative to growth rate
Elevated debt levels
Premium valuation, high expectations priced in
Trading at 43.2x book value
Expensive relative to growth rate
ROE of 5.0% — below average capital efficiency
Weak financial health signals
Premium valuation, high expectations priced in
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 35.7% and operating margin at 41.2%. Revenue growth of 11.5% demonstrates continued momentum.
Bull Case : ONTO
The strongest argument for ONTO centers on Altman Z-Score.
Bear Case : KLAC
The primary concerns for KLAC are PEG Ratio, Debt/Equity, P/E Ratio. A P/E of 57.9x leaves little room for execution misses.
Bear Case : ONTO
The primary concerns for ONTO are PEG Ratio, Return on Equity, Piotroski F-Score. A P/E of 151.3x leaves little room for execution misses.
Key Dynamics to Monitor
KLAC profiles as a mature stock while ONTO is a value play — different risk/reward profiles.
ONTO carries more volatility with a beta of 1.63 — 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.
Bottom Line
KLAC scores higher overall (66/100 vs 44/100), backed by strong 35.7% margins and 11.5% revenue growth. 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 →Onto Innovation Inc
TECHNOLOGY · SEMICONDUCTOR EQUIPMENT & MATERIALS · USA
Onto Innovation Inc. is dedicated to the design, development, manufacture and support of process control tools that perform macrodefect inspection and metrology, lithography systems, and process control analytical software worldwide. The company is headquartered in Wilmington, Massachusetts.
Visit Website →Compare with Other SEMICONDUCTOR EQUIPMENT & MATERIALS Stocks
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