KLA Corporation (KLAC) vs Nova Ltd. (NVMI)

KLA Corporation and Nova Ltd. are both Semiconductor Equipment & Materials companies. KLA Corporation is the larger, with a market value of $218.5B against $10.6B — 20.5× the size. Nova Ltd. trades at the lower P/E: 36.1× against 43.0×. Nova Ltd. grew revenue faster over the last twelve months: 16.2% against 11.7%. KLA Corporation has the higher net margin (35.6% vs 28.8%) and the higher return on invested capital (48.2% vs 14.4%). Across the 22 metrics below, Nova Ltd. leads on 13 and KLA Corporation on 9.

Valuation

Metric KLAC NVMI Semiconductor Equipment & Materials median
P/E 43.04 36.06 41.61
P/S 15.30 10.62 4.69
P/B 32.72 7.55 3.47
Price to free cash flow 55.32 52.45 48.35
EV/EBITDA 34.60 35.46 30.54
EV/Sales 15.43 11.09 5.65
Earnings yield 2.32% 2.77% 1.34%
Free cash flow yield 1.81% 1.91% 1.86%

Profitability

Metric KLAC NVMI Semiconductor Equipment & Materials median
Gross margin 61.30% 57.12% 43.95%
Operating margin 41.69% 28.97% 10.32%
Net margin 35.57% 28.84% 7.45%
Free cash flow margin 27.74% 20.24% 6.77%
Return on equity 87.50% 0.00% 4.78%
Return on assets 28.40% 13.44% 3.62%
Return on invested capital 48.24% 14.41% 6.10%

Growth

Metric KLAC NVMI Semiconductor Equipment & Materials median
Revenue growth (TTM) 11.71% 16.16% 14.60%
EPS growth (last fiscal year) 20.51% 38.43% (4.56%)
Revenue growth, 5-year CAGR 14.44% 26.73% 10.11%
Net income growth, 5-year CAGR 18.38% 40.17% 0.00%

Health

Metric KLAC NVMI Semiconductor Equipment & Materials median
Debt to equity 0.93 0.50 0.09
Current ratio 2.88 1.55 3.66
Net debt to EBITDA 0.16 (1.16) (0.49)

Dividend

Metric KLAC NVMI Semiconductor Equipment & Materials median
Dividend yield 0.53% — 0.46%
Payout ratio 0.23 — 0.19

Size

Metric KLAC NVMI Semiconductor Equipment & Materials median
Market cap 218.50b 10.64b 3.46b

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