Hon Hai Precision Industry Co., Ltd. Sponsored GDR (OTCMKTS:HNHPF) versus KLA (NASDAQ:KLAC) Head-To-Head Contrast

KLA (NASDAQ:KLAC) and Hon Hai Precision Industry Co., Ltd. Sponsored GDR (OTCMKTS:HNHPF) are both computer and technology companies, but which is the superior business? We will compare the two businesses based on the strength of their valuation, earnings, institutional ownership, risk, dividends, analyst recommendations and profitability.

Volatility & Risk

KLA has a beta of 1.45, indicating that its share price is 45% more volatile than the S&P 500. Comparatively, Hon Hai Precision Industry Co., Ltd. Sponsored GDR has a beta of 0.86, indicating that its share price is 14% less volatile than the S&P 500.

Dividends

KLA pays an annual dividend of $7.60 per share and has a dividend yield of 0.5%. Hon Hai Precision Industry Co., Ltd. Sponsored GDR pays an annual dividend of $0.28 per share and has a dividend yield of 2.0%. KLA pays out 22.1% of its earnings in the form of a dividend. KLA has raised its dividend for 16 consecutive years.

Institutional and Insider Ownership

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

Profitability

This table compares KLA and Hon Hai Precision Industry Co., Ltd. Sponsored GDR’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%
Hon Hai Precision Industry Co., Ltd. Sponsored GDR	2.46%	11.43%	4.68%

Analyst Ratings

This is a breakdown of current recommendations for KLA and Hon Hai Precision Industry Co., Ltd. Sponsored GDR, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
KLA	0	9	19	1	2.72
Hon Hai Precision Industry Co., Ltd. Sponsored GDR	0	0	1	0	3.00

KLA presently has a consensus target price of $1,601.04, indicating a potential upside of 10.00%. Given KLA’s higher probable upside, equities research analysts plainly believe KLA is more favorable than Hon Hai Precision Industry Co., Ltd. Sponsored GDR.

Valuation and Earnings

This table compares KLA and Hon Hai Precision Industry Co., Ltd. Sponsored GDR”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
KLA	$12.16 billion	15.69	$4.06 billion	$34.37	42.35
Hon Hai Precision Industry Co., Ltd. Sponsored GDR	$213.33 billion	N/A	$4.75 billion	N/A	N/A

Hon Hai Precision Industry Co., Ltd. Sponsored GDR has higher revenue and earnings than KLA.

Summary

KLA beats Hon Hai Precision Industry Co., Ltd. Sponsored GDR on 10 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 Hon Hai Precision Industry Co., Ltd. Sponsored GDR

Hon Hai Precision Industry Co., Ltd. provides electronic OEM services. The company offers consumer electronics comprising of television sets, game consoles, set-top boxes, and speakers. It also provides cloud networking products consisting of routers, servers, edge computing, data centers, and satellite communications and other related equipment. In addition, the company offers desktop computers, notebook computers, tablets, business machines, printers, etc. Further, it provides connectors, precision optical components, lenses, electronic components, semiconductor products, automotive electronic parts, cutting tools/mold fixtures, and mechanical equipment. The company operates in Taiwan, Mainland China, India, Japan, Vietnam, Malaysia, Singapore, the Czech Republic, Hungary, Slovakia, the United States, Brazil, and Mexico. Hon Hai Precision Industry Co., Ltd. was founded in 1974 and is headquartered in New Taipei City, Taiwan.