KLA Corporation (KLAC)vsTexas Instruments Incorporated (TXN)
KLAC
KLA Corporation
$1,543.82
-1.43%
TECHNOLOGY · Cap: $205.79B
TXN
Texas Instruments Incorporated
$196.77
+1.10%
TECHNOLOGY · Cap: $179.15B
Smart Verdict
WallStSmart Research — data-driven comparison
Texas Instruments Incorporated generates 39% more annual revenue ($17.68B vs $12.74B). KLAC leads profitability with a 35.8% profit margin vs 28.3%. TXN appears more attractively valued with a PEG of 1.47. KLAC earns a higher WallStSmart Score of 70/100 (B).
KLAC
Strong Buy70
out of 100
Grade: B
TXN
Buy63
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
-430.9%
Fair Value
$37.06
Current Price
$196.77
$159.71 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
Every $100 of equity generates 30 in profit
Strong operational efficiency at 34.0%
Safe zone — low bankruptcy risk
Large-cap with strong market position
Keeps 28 of every $100 in revenue as profit
Generating 1.3B 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
Trading at 11.0x book value
Earnings declined 3.2%
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 : TXN
The strongest argument for TXN centers on Return on Equity, Operating Margin, Altman Z-Score. Profitability is solid with margins at 28.3% and operating margin at 34.0%. Revenue growth of 10.4% 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 : TXN
The primary concerns for TXN are P/E Ratio, Price/Book, EPS Growth.
Key Dynamics to Monitor
KLAC carries more volatility with a beta of 1.45 — expect wider price swings.
TXN is growing revenue faster at 10.4% — sustainability is the question.
TXN 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 (70/100 vs 63/100), 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 →Texas Instruments Incorporated
TECHNOLOGY · SEMICONDUCTORS · USA
Texas Instruments Incorporated (TI) is an American technology company headquartered in Dallas, Texas, that designs and manufactures semiconductors and various integrated circuits, which it sells to electronics designers and manufacturers globally. It is one of the top 10 semiconductor companies worldwide based on sales volume.
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