KLA Corporation (KLAC)vsWestern Digital Corporation (WDC)
KLAC
KLA Corporation
$1,929.20
+8.73%
TECHNOLOGY · Cap: $334.96B
WDC
Western Digital Corporation
$575.50
+4.79%
TECHNOLOGY · Cap: $225.26B
Smart Verdict
WallStSmart Research — data-driven comparison
KLA Corporation generates 11% more annual revenue ($13.10B vs $11.78B). WDC leads profitability with a 55.3% profit margin vs 35.7%. WDC appears more attractively valued with a PEG of 0.58. WDC earns a higher WallStSmart Score of 80/100 (A-).
KLAC
Strong Buy66
out of 100
Grade: B-
WDC
Exceptional Buy80
out of 100
Grade: A-
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Mega-cap, among the largest globally
Every $100 of equity generates 80 in profit
Keeps 36 of every $100 in revenue as profit
Strong operational efficiency at 41.2%
Mega-cap, among the largest globally
Every $100 of equity generates 67 in profit
Keeps 55 of every $100 in revenue as profit
Strong operational efficiency at 37.0%
Revenue surging 45.5% year-over-year
Earnings expanding 482.9% YoY
Areas to Watch
Elevated debt levels
Expensive relative to growth rate
Premium valuation, high expectations priced in
Trading at 432.6x book value
Premium valuation, high expectations priced in
Distress zone — elevated risk
Trading at 27.5x 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 35.7% and operating margin at 41.2%. Revenue growth of 11.5% demonstrates continued momentum.
Bull Case : WDC
The strongest argument for WDC centers on Market Cap, Return on Equity, Profit Margin. Profitability is solid with margins at 55.3% and operating margin at 37.0%. Revenue growth of 45.5% demonstrates continued momentum.
Bear Case : KLAC
The primary concerns for KLAC are Debt/Equity, PEG Ratio, P/E Ratio. A P/E of 72.4x leaves little room for execution misses.
Bear Case : WDC
The primary concerns for WDC are P/E Ratio, Altman Z-Score, Price/Book.
Key Dynamics to Monitor
KLAC profiles as a mature stock while WDC is a growth play — different risk/reward profiles.
WDC carries more volatility with a beta of 2.20 — expect wider price swings.
WDC is growing revenue faster at 45.5% — sustainability is the question.
WDC generates stronger free cash flow (978M), providing more financial flexibility.
Bottom Line
WDC scores higher overall (80/100 vs 66/100), backed by strong 55.3% margins and 45.5% revenue growth. Both earn "Exceptional 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 →Western Digital Corporation
TECHNOLOGY · COMPUTER HARDWARE · USA
Western Digital Corporation (WDC, commonly known as Western Digital or WD) is an American computer hard disk drive manufacturer and data storage company, headquartered in San Jose, California. It designs, manufactures and sells data technology products, including storage devices, data center systems and cloud storage services.
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