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 $169.1B against $33.2B — 5.1× the size. Teradyne, Inc. trades at the lower P/E: 24.8× against 32.7×. Teradyne, Inc. grew revenue faster over the last twelve months: 74.9% against 15.8%. KLA Corporation has the higher net margin (36.3% vs 27.5%) and the higher return on invested capital (51.5% vs 31.2%). Both pay a dividend; KLA Corporation yields more (0.64% vs 0.23%). Across the 23 metrics below, KLA Corporation leads on 12 and Teradyne, Inc. on 11.

Valuation

Metric KLAC TER Semiconductor Equipment & Materials median
P/E 32.72 24.76 33.70
P/S 11.83 6.79 4.22
P/B 26.30 9.20 2.94
Price to free cash flow 42.61 33.11 31.49
EV/EBITDA 26.34 19.32 22.64
EV/Sales 11.95 6.74 4.97
Earnings yield 3.06% 4.04% 2.02%
Free cash flow yield 2.35% 3.02% 2.27%

Profitability

Metric KLAC TER Semiconductor Equipment & Materials median
Gross margin 61.47% 59.32% 46.86%
Operating margin 42.64% 32.11% 12.02%
Net margin 36.25% 27.46% 10.16%
Free cash flow margin 27.83% 20.49% 6.73%
Return on equity 91.38% 42.87% 5.31%
Return on assets 30.29% 29.17% 4.10%
Return on invested capital 51.51% 31.16% 6.36%

Growth

Metric KLAC TER Semiconductor Equipment & Materials median
Revenue growth (TTM) 15.82% 74.88% 15.82%
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 0.88 0.00 0.09
Current ratio 2.76 2.08 3.56
Net debt to EBITDA 0.16 (0.16) (0.49)

Dividend

Metric KLAC TER Semiconductor Equipment & Materials median
Dividend yield 0.64% 0.23% 0.59%
Payout ratio 0.21 0.06 0.16

Size

Metric KLAC TER Semiconductor Equipment & Materials median
Market cap 169.12b 33.21b 3.04b

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