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 $248.2B against $62.4B — 4.0× the size. KLA Corporation trades at the lower P/E: 51.1× against 54.3×. 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 (0.91% vs 0.47%). Across the 23 metrics below, KLA Corporation leads on 17 and Teradyne, Inc. on 6.

Valuation

Metric KLAC TER Semiconductor Equipment & Materials median
P/E 51.08 54.35 54.39
P/S 18.16 13.96 6.08
P/B 38.83 17.95 4.89
Price to free cash flow 65.65 77.92 60.92
EV/EBITDA 41.01 42.01 39.95
EV/Sales 18.29 13.94 6.36
Earnings yield 1.96% 1.84% 1.14%
Free cash flow yield 1.52% 1.28% 1.28%

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% —
Revenue growth, 5-year CAGR 14.44% 0.44% 8.85%
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 0.91% 0.47% 0.85%
Payout ratio 0.22 0.13 0.00

Size

Metric KLAC TER Semiconductor Equipment & Materials median
Market cap 248.19b 62.38b 4.63b

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