KLA Corporation (KLAC)vsVertiv Holdings Co (VRT)
KLAC
KLA Corporation
$1,443.21
-0.55%
TECHNOLOGY · Cap: $205.79B
VRT
Vertiv Holdings Co
$251.07
-0.53%
INDUSTRIALS · Cap: $103.64B
Smart Verdict
WallStSmart Research — data-driven comparison
KLA Corporation generates 25% more annual revenue ($12.74B vs $10.23B). KLAC leads profitability with a 35.8% profit margin vs 13.0%. 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
VRT
Strong Buy67
out of 100
Grade: B-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+9.6%
Fair Value
$1605.71
Current Price
$1443.21
$162.50 discount
Margin of Safety
-55.7%
Fair Value
$159.59
Current Price
$251.07
$91.48 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 42 in profit
Large-cap with strong market position
Strong operational efficiency at 21.2%
Revenue surging 22.7% year-over-year
Areas to Watch
Expensive relative to growth rate
Elevated debt levels
Premium valuation, high expectations priced in
Trading at 34.6x book value
Expensive relative to growth rate
2.0% earnings growth
Premium valuation, high expectations priced in
Trading at 24.4x book value
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 : VRT
The strongest argument for VRT centers on Return on Equity, Market Cap, Operating Margin. Revenue growth of 22.7% 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 : VRT
The primary concerns for VRT are PEG Ratio, EPS Growth, P/E Ratio. A P/E of 79.4x leaves little room for execution misses.
Key Dynamics to Monitor
KLAC profiles as a mature stock while VRT is a growth play — different risk/reward profiles.
VRT carries more volatility with a beta of 2.08 — expect wider price swings.
VRT is growing revenue faster at 22.7% — sustainability is the question.
KLAC generates stronger free cash flow (1.3B), providing more financial flexibility.
Bottom Line
KLAC scores higher overall (70/100 vs 67/100), backed by strong 35.8% margins. Both earn "Strong Buy" and "Strong 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 →Vertiv Holdings Co
INDUSTRIALS · ELECTRICAL EQUIPMENT & PARTS · USA
Vertiv Holdings Co designs, manufactures and services critical digital infrastructure technologies and lifecycle services for data centers, communication networks, and commercial and industrial environments in the Americas, Asia Pacific, Europe, the Middle East, and Africa. The company is headquartered in Columbus, Ohio.
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