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 $227.7B against $25.0B — 9.1× the size. Qnity Electronics, Inc. trades at the lower P/E: 41.2× against 45.0×. 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 45.03 41.20 45.03
P/S 16.01 4.64 4.64
P/B 34.23 3.20 3.22
Price to free cash flow 57.87 29.09 48.18
EV/EBITDA 36.19 19.18 33.11
EV/Sales 16.14 5.23 5.52
Earnings yield 2.22% 2.43% 1.41%
Free cash flow yield 1.73% 3.44% 1.67%

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%) (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 0.93 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 0.51% — 0.42%
Payout ratio 0.23 — 0.19

Size

Metric KLAC Q Semiconductor Equipment & Materials median
Market cap 227.67b 25.02b 3.80b

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