KLA vs ASML Which Performs Better?

KLA Corporation and ASML Holding NV are two major players in the semiconductor industry, each offering unique products and services that cater to different aspects of the manufacturing process. KLA specializes in process control and yield management solutions, while ASML is a leading provider of lithography systems used in semiconductor production. Both companies have seen significant growth in recent years, with KLA's stock showing steady performance and ASML's stock experiencing periods of volatility. Investors looking to capitalize on the booming semiconductor market may find opportunities in both KLA and ASML stocks.

KLA or ASML?

When comparing KLA and ASML, different investors may prioritize various metrics based on their investment strategies and goals. So, ask yourself what type of investor you are. This will guide you in determining which metrics are most important for your investment decision between KLA and ASML.

Dividend Investors:

Dividend investors look for stable and growing income streams, using dividend metrics to assess potential investments. A company's dividend yield essentially measures the size of its dividend relative to the total market value of the company. KLA has a dividend yield of 0.94%, while ASML has a dividend yield of 0.9%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. KLA reports a 5-year dividend growth of 13.50% year and a payout ratio of 26.62%. On the other hand, ASML reports a 5-year dividend growth of 29.40% year and a payout ratio of 35.02%.

Value Investors:

Value investors focus on financial metrics to determine a stock's intrinsic value compared to its market value. The Price-to-Earnings (P/E) Ratio links stock price to a company's earnings per share, with KLA P/E ratio at 29.24 and ASML's P/E ratio at 38.66. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. KLA P/B ratio is 24.36 while ASML's P/B ratio is 16.58.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, KLA has seen a 5-year revenue growth of 1.91%, while ASML's is 1.71%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with KLA's ROE at 90.81% and ASML's ROE at 47.68%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $637.91 for KLA and $710.63 for ASML. Over the past year, KLA's prices ranged from $542.41 to $896.32, with a yearly change of 65.25%. ASML's prices fluctuated between $645.45 and $1110.09, with a yearly change of 71.99%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.