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 $169.1B against $23.0B — 7.3× the size. KLA Corporation trades at the lower P/E: 34.2× against 42.7×. Qnity Electronics, Inc. grew revenue faster over the last twelve months: 16.5% against 15.8%. KLA Corporation has the higher net margin (36.3% vs 10.2%) and the higher return on invested capital (51.5% vs 6.36%). Across the 20 metrics below, KLA Corporation leads on 12 and Qnity Electronics, Inc. on 8.

Valuation

Metric KLAC Q Semiconductor Equipment & Materials median
P/E 34.21 42.73 35.94
P/S 12.36 4.44 4.44
P/B 27.49 3.09 3.09
Price to free cash flow 44.54 31.15 33.07
EV/EBITDA 27.52 18.35 23.48
EV/Sales 12.48 4.97 5.23
Earnings yield 2.92% 2.34% 2.34%
Free cash flow yield 2.25% 3.21% 2.18%

Profitability

Metric KLAC Q Semiconductor Equipment & Materials median
Gross margin 61.47% 46.92% 46.86%
Operating margin 42.64% 20.00% 12.02%
Net margin 36.25% 10.16% 10.20%
Free cash flow margin 27.83% 14.26% 6.73%
Return on equity 91.38% 6.46% 5.32%
Return on assets 30.29% 4.10% 4.10%
Return on invested capital 51.51% 6.36% 6.36%

Growth

Metric KLAC Q Semiconductor Equipment & Materials median
Revenue growth (TTM) 15.82% 16.51% 16.16%
EPS growth (last fiscal year) 20.51% (4.56%) (4.56%)
Revenue growth, 5-year CAGR 14.44% — 10.11%
Net income growth, 5-year CAGR 18.38% — 0.00%

Health

Metric KLAC Q Semiconductor Equipment & Materials median
Debt to equity 0.88 0.51 0.09
Current ratio 2.76 2.09 3.44
Net debt to EBITDA 0.16 2.31 (0.49)

Dividend

Metric KLAC Q Semiconductor Equipment & Materials median
Dividend yield 0.61% — 0.55%
Payout ratio 0.21 — 0.16

Size

Metric KLAC Q Semiconductor Equipment & Materials median
Market cap 169.12b 23.02b 2.69b

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