KLA Corporation (KLAC)vsQnity Electronics, Inc (Q)
KLAC
KLA Corporation
$1,482.36
+1.97%
TECHNOLOGY · Cap: $194.64B
Q
Qnity Electronics, Inc
$112.02
-1.72%
TECHNOLOGY · Cap: $23.53B
Smart Verdict
WallStSmart Research — data-driven comparison
KLA Corporation generates 168% more annual revenue ($12.74B vs $4.75B). KLAC leads profitability with a 35.8% profit margin vs 14.6%. KLAC appears more attractively valued with a PEG of 1.60. KLAC earns a higher WallStSmart Score of 69/100 (B-).
KLAC
Strong Buy69
out of 100
Grade: B-
Q
Hold49
out of 100
Grade: D+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+7.9%
Fair Value
$1608.52
Current Price
$1482.36
$126.16 discount
Margin of Safety
-410.3%
Fair Value
$22.44
Current Price
$112.02
$89.58 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
Strong operational efficiency at 20.4%
Areas to Watch
Expensive relative to growth rate
Elevated debt levels
Premium valuation, high expectations priced in
Trading at 35.6x book value
Expensive relative to growth rate
Premium valuation, high expectations priced in
ROE of 8.0% — below average capital efficiency
Earnings declined 52.8%
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 : Q
The strongest argument for Q centers on Operating Margin.
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.
Bear Case : Q
The primary concerns for Q are PEG Ratio, P/E Ratio, Return on Equity.
Key Dynamics to Monitor
KLAC profiles as a mature stock while Q is a value play — different risk/reward profiles.
Q is growing revenue faster at 8.1% — sustainability is the question.
KLAC generates stronger free cash flow (1.3B), providing more financial flexibility.
Monitor SEMICONDUCTOR EQUIPMENT & MATERIALS industry trends, competitive dynamics, and regulatory changes.
Bottom Line
KLAC scores higher overall (69/100 vs 49/100), backed by strong 35.8% margins. 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 →Qnity Electronics, Inc
TECHNOLOGY · SEMICONDUCTOR EQUIPMENT & MATERIALS · USA
IQVIA Holdings Inc. provides integrated information and technology-enabled healthcare services in the Americas, Europe, Africa, and Asia-Pacific. The company is headquartered in Durham, North Carolina.
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