KLA Corporation (KLAC)vsRaytheon Technologies Corp (RTX)
KLAC
KLA Corporation
$1,543.82
-1.43%
TECHNOLOGY · Cap: $205.79B
RTX
Raytheon Technologies Corp
$195.00
+0.52%
INDUSTRIALS · Cap: $261.12B
Smart Verdict
WallStSmart Research — data-driven comparison
Raytheon Technologies Corp generates 595% more annual revenue ($88.60B vs $12.74B). KLAC leads profitability with a 35.8% profit margin vs 7.6%. KLAC appears more attractively valued with a PEG of 1.66. KLAC earns a higher WallStSmart Score of 70/100 (B).
KLAC
Strong Buy70
out of 100
Grade: B
RTX
Buy55
out of 100
Grade: C-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+3.9%
Fair Value
$1605.71
Current Price
$1543.82
$61.89 discount
Margin of Safety
-95.4%
Fair Value
$99.80
Current Price
$195.00
$95.20 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Mega-cap, among the largest globally
Every $100 of equity generates 101 in profit
Keeps 36 of every $100 in revenue as profit
Strong operational efficiency at 41.3%
Earnings expanding 40.9% YoY
Generating 1.3B in free cash flow
Mega-cap, among the largest globally
Generating 3.2B in free cash flow
Areas to Watch
Expensive relative to growth rate
Elevated debt levels
Premium valuation, high expectations priced in
Trading at 37.0x book value
Premium valuation, high expectations priced in
Distress zone — elevated risk
7.6% margin — thin
Expensive relative to growth rate
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 35.8% and operating margin at 41.3%.
Bull Case : RTX
The strongest argument for RTX centers on Market Cap, Free Cash Flow. Revenue growth of 12.1% demonstrates continued momentum.
Bear Case : KLAC
The primary concerns for KLAC are PEG Ratio, Debt/Equity, P/E Ratio. A P/E of 45.6x leaves little room for execution misses.
Bear Case : RTX
The primary concerns for RTX are P/E Ratio, Altman Z-Score, Profit Margin.
Key Dynamics to Monitor
KLAC profiles as a mature stock while RTX is a value play — different risk/reward profiles.
KLAC carries more volatility with a beta of 1.45 — expect wider price swings.
RTX is growing revenue faster at 12.1% — sustainability is the question.
RTX generates stronger free cash flow (3.2B), providing more financial flexibility.
Bottom Line
KLAC scores higher overall (70/100 vs 55/100), 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 →Raytheon Technologies Corp
INDUSTRIALS · AEROSPACE & DEFENSE · USA
Raytheon Technologies Corporation is an American multinational aerospace and defense conglomerate headquartered in Waltham, Massachusetts. It is one of the largest aerospace, intelligence services providers, and defense manufacturers in the world by revenue and market capitalization. Raytheon Technologies (RTX) researches, develops, and manufactures advanced technology products in the aerospace and defense industry, including aircraft engines, avionics, aerostructures, cybersecurity, guided missiles, air defense systems, satellites, and drones.
Visit Website →Compare with Other SEMICONDUCTOR EQUIPMENT & MATERIALS Stocks
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