ASML Holding N.V. (ASML) vs KLA Corporation (KLAC)

ASML Holding N.V. and KLA Corporation are both Semiconductor Equipment & Materials companies. ASML Holding N.V. is the larger, with a market value of $673.5B against $248.2B — 2.7× the size. KLA Corporation trades at the lower P/E: 51.1× against 54.2×. ASML Holding N.V. grew revenue faster over the last twelve months: 17.6% against 11.7%. KLA Corporation has the higher net margin (35.6% vs 30.1%) and the lower return on invested capital (48.2% vs 48.3%). Both pay a dividend; KLA Corporation yields more (0.91% vs 0.80%). Across the 23 metrics below, ASML Holding N.V. leads on 12 and KLA Corporation on 11.

Valuation

Metric ASML KLAC Semiconductor Equipment & Materials median
P/E 54.21 51.08 54.39
P/S 16.28 18.16 6.08
P/B 30.22 38.83 4.89
Price to free cash flow 60.12 65.65 60.92
EV/EBITDA 42.21 41.01 39.95
EV/Sales 16.17 18.29 6.36
Earnings yield 1.84% 1.96% 1.14%
Free cash flow yield 1.66% 1.52% 1.28%

Profitability

Metric ASML KLAC Semiconductor Equipment & Materials median
Gross margin 52.76% 61.30% 43.95%
Operating margin 35.44% 41.69% 10.32%
Net margin 30.14% 35.57% 7.45%
Free cash flow margin 27.08% 27.74% 6.77%
Return on equity 0.00% 87.50% 4.78%
Return on assets 22.71% 28.40% 3.62%
Return on invested capital 48.33% 48.24% 6.10%

Growth

Metric ASML KLAC Semiconductor Equipment & Materials median
Revenue growth (TTM) 17.63% 11.71% 14.60%
EPS growth (last fiscal year) 34.25% 20.51% —
Revenue growth, 5-year CAGR 18.28% 14.44% 8.85%
Net income growth, 5-year CAGR 21.78% 18.38% 0.00%

Health

Metric ASML KLAC Semiconductor Equipment & Materials median
Debt to equity 0.09 0.93 0.09
Current ratio 1.33 2.88 3.66
Net debt to EBITDA (0.72) 0.16 (0.49)

Dividend

Metric ASML KLAC Semiconductor Equipment & Materials median
Dividend yield 0.80% 0.91% 0.85%
Payout ratio 0.31 0.22 0.00

Size

Metric ASML KLAC Semiconductor Equipment & Materials median
Market cap 673.45b 248.19b 4.63b

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