KLA Corporation (KLAC)vsPure Storage Inc (PSTG)
KLAC
KLA Corporation
$1,498.67
-0.85%
TECHNOLOGY · Cap: $196.91B
PSTG
Pure Storage Inc
$62.63
-4.31%
TECHNOLOGY · Cap: $20.68B
Smart Verdict
WallStSmart Research — data-driven comparison
KLA Corporation generates 248% more annual revenue ($12.74B vs $3.66B). KLAC leads profitability with a 35.8% profit margin vs 5.1%. PSTG appears more attractively valued with a PEG of 1.47. KLAC earns a higher WallStSmart Score of 69/100 (B-).
KLAC
Strong Buy69
out of 100
Grade: B-
PSTG
Buy59
out of 100
Grade: C
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+5.9%
Fair Value
$1592.14
Current Price
$1498.67
$93.47 discount
Margin of Safety
-195.4%
Fair Value
$25.74
Current Price
$62.63
$36.89 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
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
Earnings expanding 140.6% YoY
Revenue surging 20.4% year-over-year
Areas to Watch
Expensive relative to growth rate
Elevated debt levels
Premium valuation, high expectations priced in
Trading at 36.0x book value
Trading at 14.3x book value
5.1% margin — thin
Premium valuation, high expectations priced in
Distress zone — elevated risk
Comparative Analysis Report
WallStSmart ResearchBull 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%.
Bull Case : PSTG
The strongest argument for PSTG centers on EPS Growth, Revenue Growth. Revenue growth of 20.4% demonstrates continued momentum. PEG of 1.47 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 44.0x leaves little room for execution misses.
Bear Case : PSTG
The primary concerns for PSTG are Price/Book, Profit Margin, P/E Ratio. A P/E of 113.9x leaves little room for execution misses.
Key Dynamics to Monitor
KLAC profiles as a mature stock while PSTG is a growth play — different risk/reward profiles.
KLAC carries more volatility with a beta of 1.45 — expect wider price swings.
PSTG is growing revenue faster at 20.4% — 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 59/100), backed by strong 35.8% margins. 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.
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 →Pure Storage Inc
TECHNOLOGY · COMPUTER HARDWARE · USA
Pure Storage, Inc. provides data storage technology and solutions in the United States and internationally. The company is headquartered in Mountain View, California.
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