KLA Corporation (KLAC) vs Teradyne, Inc. (TER)

KLA Corporation and Teradyne, Inc. are both Semiconductor Equipment & Materials companies. KLA Corporation is the larger, with a market value of $227.7B against $53.7B — 4.2× the size. Teradyne, Inc. trades at the lower P/E: 44.3× against 45.0×. Teradyne, Inc. grew revenue faster over the last twelve months: 57.9% against 11.7%. KLA Corporation has the higher net margin (35.6% vs 25.8%) and the higher return on invested capital (48.2% vs 27.0%). Both pay a dividend; KLA Corporation yields more (0.51% vs 0.16%). Across the 23 metrics below, KLA Corporation leads on 14 and Teradyne, Inc. on 9.

Valuation

Metric KLAC TER Semiconductor Equipment & Materials median
P/E 45.03 44.32 45.03
P/S 16.01 11.39 4.64
P/B 34.23 14.63 3.22
Price to free cash flow 57.87 63.54 48.18
EV/EBITDA 36.19 34.23 33.11
EV/Sales 16.14 11.36 5.52
Earnings yield 2.22% 2.26% 1.41%
Free cash flow yield 1.73% 1.57% 1.67%

Profitability

Metric KLAC TER Semiconductor Equipment & Materials median
Gross margin 61.30% 59.24% 43.95%
Operating margin 41.69% 30.23% 10.32%
Net margin 35.57% 25.77% 7.45%
Free cash flow margin 27.74% 17.92% 6.77%
Return on equity 87.50% 36.45% 4.78%
Return on assets 28.40% 26.48% 3.62%
Return on invested capital 48.24% 27.04% 6.10%

Growth

Metric KLAC TER Semiconductor Equipment & Materials median
Revenue growth (TTM) 11.71% 57.87% 14.60%
EPS growth (last fiscal year) 20.51% 4.52% (4.56%)
Revenue growth, 5-year CAGR 14.44% 0.44% 10.11%
Net income growth, 5-year CAGR 18.38% (6.71%) 0.00%

Health

Metric KLAC TER Semiconductor Equipment & Materials median
Debt to equity 0.93 0.00 0.09
Current ratio 2.88 2.12 3.66
Net debt to EBITDA 0.16 (0.16) (0.49)

Dividend

Metric KLAC TER Semiconductor Equipment & Materials median
Dividend yield 0.51% 0.16% 0.42%
Payout ratio 0.23 0.07 0.19

Size

Metric KLAC TER Semiconductor Equipment & Materials median
Market cap 227.67b 53.66b 3.80b

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