KLA Corporation (KLAC) vs Qnity Electronics, Inc. (Q)

KLA Corporation and Qnity Electronics, Inc. are both Semiconductor Equipment & Materials companies. KLA Corporation is the larger, with a market value of $248.2B against $25.6B — 9.7× the size. Qnity Electronics, Inc. trades at the lower P/E: 44.5× against 51.1×. KLA Corporation has the higher net margin (35.6% vs 11.3%) and the higher return on invested capital (48.2% vs 6.10%). Across the 19 metrics below, KLA Corporation leads on 10 and Qnity Electronics, Inc. on 9.

Valuation

Metric KLAC Q Semiconductor Equipment & Materials median
P/E 51.08 44.54 54.39
P/S 18.16 5.01 6.08
P/B 38.83 3.46 4.89
Price to free cash flow 65.65 31.44 60.92
EV/EBITDA 41.01 20.55 39.95
EV/Sales 18.29 5.60 6.36
Earnings yield 1.96% 2.25% 1.14%
Free cash flow yield 1.52% 3.18% 1.28%

Profitability

Metric KLAC Q Semiconductor Equipment & Materials median
Gross margin 61.30% 46.22% 43.95%
Operating margin 41.69% 19.87% 10.32%
Net margin 35.57% 11.25% 7.45%
Free cash flow margin 27.74% 15.95% 6.77%
Return on equity 87.50% 6.36% 4.78%
Return on assets 28.40% 8.18% 3.62%
Return on invested capital 48.24% 6.10% 6.10%

Growth

Metric KLAC Q Semiconductor Equipment & Materials median
Revenue growth (TTM) 11.71% — 14.60%
EPS growth (last fiscal year) 20.51% (4.56%) —
Revenue growth, 5-year CAGR 14.44% — 8.85%
Net income growth, 5-year CAGR 18.38% — 0.00%

Health

Metric KLAC Q Semiconductor Equipment & Materials median
Debt to equity 0.93 0.53 0.09
Current ratio 2.88 2.01 3.66
Net debt to EBITDA 0.16 2.31 (0.49)

Dividend

Metric KLAC Q Semiconductor Equipment & Materials median
Dividend yield 0.91% — 0.85%
Payout ratio 0.22 — 0.00

Size

Metric KLAC Q Semiconductor Equipment & Materials median
Market cap 248.19b 25.60b 4.63b

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