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 $341.3B against $227.7B — 1.5× the size. Applied Materials, Inc. trades at the lower P/E: 35.1× against 45.0×. KLA Corporation grew revenue faster over the last twelve months: 11.7% against 7.77%. KLA Corporation has the higher net margin (35.6% vs 30.1%) and the higher return on invested capital (48.2% vs 24.9%). Only KLA Corporation pays a dividend (0.51%). Across the 23 metrics below, KLA Corporation leads on 13 and Applied Materials, Inc. on 10.

Valuation

Metric AMAT KLAC Semiconductor Equipment & Materials median
P/E 35.07 45.03 45.03
P/S 10.54 16.01 4.64
P/B 12.68 34.23 3.22
Price to free cash flow 56.50 57.87 48.18
EV/EBITDA 33.34 36.19 33.11
EV/Sales 10.45 16.14 5.52
Earnings yield 2.85% 2.22% 1.41%
Free cash flow yield 1.77% 1.73% 1.67%

Profitability

Metric AMAT KLAC Semiconductor Equipment & Materials median
Gross margin 49.40% 61.30% 43.95%
Operating margin 29.64% 41.69% 10.32%
Net margin 30.05% 35.57% 7.45%
Free cash flow margin 18.25% 27.74% 6.77%
Return on equity 41.07% 87.50% 4.78%
Return on assets 23.84% 28.40% 3.62%
Return on invested capital 24.91% 48.24% 6.10%

Growth

Metric AMAT KLAC Semiconductor Equipment & Materials median
Revenue growth (TTM) 7.77% 11.71% 14.60%
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 0.93 0.09
Current ratio 2.42 2.88 3.66
Net debt to EBITDA (0.23) 0.16 (0.49)

Dividend

Metric AMAT KLAC Semiconductor Equipment & Materials median
Dividend yield 0.00% 0.51% 0.42%
Payout ratio 0.00 0.23 0.19

Size

Metric AMAT KLAC Semiconductor Equipment & Materials median
Market cap 341.25b 227.67b 3.80b

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