Applied Materials, Inc. (AMAT) vs KLA Corporation (KLAC)

Applied Materials, Inc. and KLA Corporation are both Semiconductor Equipment & Materials companies. Applied Materials, Inc. is the larger, with a market value of $253.4B against $169.1B — 1.5× the size. Applied Materials, Inc. trades at the lower P/E: 27.7× against 32.7×. KLA Corporation grew revenue faster over the last twelve months: 15.8% against 7.77%. KLA Corporation has the higher net margin (36.3% vs 30.1%) and the higher return on invested capital (51.5% vs 24.9%). Only KLA Corporation pays a dividend (0.64%). Across the 23 metrics below, KLA Corporation leads on 15 and Applied Materials, Inc. on 8.

Valuation

Metric AMAT KLAC Semiconductor Equipment & Materials median
P/E 27.69 32.72 33.70
P/S 8.32 11.83 4.22
P/B 10.01 26.30 2.94
Price to free cash flow 44.60 42.61 31.49
EV/EBITDA 26.26 26.34 22.64
EV/Sales 8.23 11.95 4.97
Earnings yield 3.61% 3.06% 2.02%
Free cash flow yield 2.24% 2.35% 2.27%

Profitability

Metric AMAT KLAC Semiconductor Equipment & Materials median
Gross margin 49.40% 61.47% 46.86%
Operating margin 29.64% 42.64% 12.02%
Net margin 30.05% 36.25% 10.16%
Free cash flow margin 18.25% 27.83% 6.73%
Return on equity 41.07% 91.38% 5.31%
Return on assets 23.84% 30.29% 4.10%
Return on invested capital 24.91% 51.51% 6.36%

Growth

Metric AMAT KLAC Semiconductor Equipment & Materials median
Revenue growth (TTM) 7.77% 15.82% 15.82%
EPS growth (last fiscal year) 0.58% 20.51% (4.56%)
Revenue growth, 5-year CAGR 10.52% 14.44% 10.11%
Net income growth, 5-year CAGR 14.10% 18.38% 0.00%

Health

Metric AMAT KLAC Semiconductor Equipment & Materials median
Debt to equity 0.26 0.88 0.09
Current ratio 2.42 2.76 3.56
Net debt to EBITDA (0.23) 0.16 (0.49)

Dividend

Metric AMAT KLAC Semiconductor Equipment & Materials median
Dividend yield 0.00% 0.64% 0.59%
Payout ratio 0.00 0.21 0.16

Size

Metric AMAT KLAC Semiconductor Equipment & Materials median
Market cap 253.36b 169.12b 3.04b

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