Head-To-Head Survey: XCHG (NASDAQ:XCH) versus KLA (NASDAQ:KLAC)

KLA (NASDAQ:KLAC) and XCHG (NASDAQ:XCH) are both computer and technology companies, but which is the better business? We will compare the two businesses based on the strength of their dividends, profitability, valuation, analyst recommendations, institutional ownership, earnings and risk.

Earnings and Valuation

This table compares KLA and XCHG”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
KLA	$12.16 billion	14.10	$4.06 billion	$34.37	38.03
XCHG	$42.20 million	1.20	-$11.94 million	($0.08)	-10.62

KLA has higher revenue and earnings than XCHG. XCHG is trading at a lower price-to-earnings ratio than KLA, indicating that it is currently the more affordable of the two stocks.

Institutional & Insider Ownership

86.7% of KLA shares are owned by institutional investors. 91.5% of KLA shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Profitability

This table compares KLA and XCHG’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
KLA	35.76%	98.18%	29.24%
XCHG	N/A	N/A	N/A

Analyst Recommendations

This is a breakdown of current recommendations for KLA and XCHG, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
KLA	0	9	18	1	2.71
XCHG	1	1	0	0	1.50

KLA currently has a consensus price target of $1,582.89, suggesting a potential upside of 21.09%. Given KLA’s stronger consensus rating and higher probable upside, research analysts plainly believe KLA is more favorable than XCHG.

Risk and Volatility

KLA has a beta of 1.47, indicating that its share price is 47% more volatile than the S&P 500. Comparatively, XCHG has a beta of -0.86, indicating that its share price is 186% less volatile than the S&P 500.

Summary

KLA beats XCHG on 15 of the 15 factors compared between the two stocks.

About KLA

KLA Corporation, together with its subsidiaries, engages in the design, manufacture, and marketing of process control, process-enabling, and yield management solutions for the semiconductor and related electronics industries worldwide. It operates through three segments: Semiconductor Process Control; Specialty Semiconductor Process; and PCB and Component Inspection. The company offers inspection and review tools to identify, locate, characterize, review, and analyze defects on various surfaces of patterned and unpatterned wafers; metrology systems that are used to measure pattern dimensions, film thickness, film stress, layer-to-layer alignment, pattern placement, surface topography, and electro-optical properties for wafers; chemical process control equipment; wired and wireless sensor wafers and reticles; wafer defect inspection, review, and metrology systems; reticle inspection and metrology systems; and semiconductor software solutions that provide run-time process control, defect excursion identification, process corrections, and defect classification to accelerate yield learning rates and reduce production risk. It also provides etch, plasma dicing, deposition, and other wafer processing technologies and solutions for the semiconductor and microelectronics industry. In addition, the company offers direct imaging, inspection, optical shaping, inkjet and additive printing, UV laser drilling, and computer-aided manufacturing and engineering solutions for the PCB market; inspection and electrical testing systems to identify and classify defects, as well as systems to repair defects for the display market; and inspection and metrology systems for quality control and yield improvement in advanced and traditional semiconductor packaging markets. The company was formerly known as KLA-Tencor Corporation and changed its name to KLA Corporation in July 2019. KLA Corporation was incorporated in 1975 and is headquartered in Milpitas, California.

About XCHG

XCHG Limited, branded as XCharge, is a company whose subsidiaries design, manufacture, and sell electric vehicle (EV) charging solutions under the X-Charge name in Europe, China, the United States, and other international markets. The company focuses on DC fast-charging infrastructure, including its C6 and C7 series chargers and Net Zero battery-integrated fast-charging systems, and also provides related software upgrades and hardware maintenance services for EV manufacturers, energy companies, and charge point operators. Founded in 2015, XCHG positions itself as a global provider of integrated EV charging solutions that combine high-power charging with smart energy management.