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KLAC vs. TSEM: KLA vs. Tower Semiconductor Stock Comparison

How do KLA (KLAC) and Tower Semiconductor (TSEM) stack up? This page sets them side by side across company profile, performance and risk, profitability, growth, financial strength, dividends, and valuation, with selected fundamentals also measured against each stock's industry-group peers.

Company Profile

KLA (KLAC) and Tower Semiconductor (TSEM) both belong to the Semiconductors & Semiconductor Equipment industry, though KLAC is classified under Semiconductor Materials & Equipment while TSEM falls under Semiconductors.

Company profile comparison for KLA (KLAC) and Tower Semiconductor (TSEM)
Profile ItemKLACTSEM
NameKLA CorporationTower Semiconductor Ltd.
Country/RegionUnited StatesIsrael
GICS SectorInformation TechnologyInformation Technology
GICS Industry GroupSemiconductors & Semiconductor EquipmentSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor EquipmentSemiconductors & Semiconductor Equipment
GICS Sub-IndustrySemiconductor Materials & EquipmentSemiconductors
Market Capitalization180.45 billion USD15.59 billion USD
CurrencyUSDUSD
ExchangeNasdaqNasdaq
Listing DateOctober 8, 1980October 26, 1994
Security TypeCommon StockCommon Stock

Price Performance

Cumulative Growth

KLAC
TSEM
GSPC
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KLA (KLAC) vs. Tower Semiconductor (TSEM), with S&P 500 (GSPC) for reference: Growth of a $10,000 investment over the past five years. Adjusted for dividends and splits.

Trailing Returns

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Trailing total returns for KLA (KLAC) and Tower Semiconductor (TSEM). Returns over one year are annualized.

Calendar-Year Returns

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Calendar-year total returns for KLA (KLAC) and Tower Semiconductor (TSEM). Each bar is that year's total return, measured year-end to year-end.

Performance Metrics

Price performance metrics for KLA (KLAC) and Tower Semiconductor (TSEM)
MetricKLACTSEM
Total Return (1Y)26.92%78.71%
Total Return (3Y, Annualized)44.97%83.79%
Total Return (5Y, Annualized)30.55%32.56%

Risk Profile

Drawdown History

KLAC
TSEM
GSPC
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KLA (KLAC) vs. Tower Semiconductor (TSEM), with S&P 500 (GSPC) for reference: Drawdown from the running peak over the past five years. Each line shows the decline from its prior peak; 0% marks a new high.

Return Distribution

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Distribution of monthly total returns for KLA (KLAC) and Tower Semiconductor (TSEM). Each bar is the share of months whose return fell in that 5% bucket.

Risk Metrics

Risk profile metrics for KLA (KLAC) and Tower Semiconductor (TSEM)
MetricKLACTSEM
Volatility (1Y, Annualized)63.92%84.90%
Beta (5Y)1.510.99
Max Drawdown (5Y)-56.93%-58.66%
Avg. Volume (3M)10.66M2.22M

Risk-Adjusted Performance

Risk-Return Positioning

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KLAC and TSEM are plotted by 1-year volatility (risk) and 1-year return. The dashed Capital Allocation Line runs from the risk-free rate through the shared industry median.

Risk-Adjusted Metrics

Risk-adjusted metrics for KLA (KLAC) and Tower Semiconductor (TSEM)
MetricKLACTSEM
Sharpe Ratio (1Y)0.350.88
Sortino Ratio (1Y)0.501.32

Profitability

ROE (TTM)

KLA (KLAC) at 91.38% clears its industry range for ROE, a sharper capital-efficiency signal than Tower Semiconductor (TSEM) at 11.86%, which is closer to a typical peer reading.

KLAC

Semiconductors & Semiconductor Equipment industry group

91.38%

KLAC
91.38%
Max
52.82%
Q3
22.26%
Median
10.58%
Q1
1.29%
Min
-16.89%

TSEM

Semiconductors & Semiconductor Equipment industry group

11.86%

Max
52.82%
Q3
22.26%
TSEM
11.86%
Median
10.58%
Q1
1.29%
Min
-16.89%
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KLA (KLAC) vs. Tower Semiconductor (TSEM): A comparison of their ROE against the Semiconductors & Semiconductor Equipment industry group benchmark.

Net Margin (TTM)

KLA (KLAC) at 36.25% retains a top-quartile share of revenue as profit, ahead of Tower Semiconductor (TSEM) at 19.36%, which keeps about the industry-typical share.

KLAC

Semiconductors & Semiconductor Equipment industry group

36.25%

Max
63.80%
KLAC
36.25%
Q3
28.36%
Median
11.44%
Q1
0.90%
Min
-37.77%

TSEM

Semiconductors & Semiconductor Equipment industry group

19.36%

Max
63.80%
Q3
28.36%
TSEM
19.36%
Median
11.44%
Q1
0.90%
Min
-37.77%
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KLA (KLAC) vs. Tower Semiconductor (TSEM): A comparison of their net margin against the Semiconductors & Semiconductor Equipment industry group benchmark.

Operating Margin (TTM)

KLA (KLAC) at 45.01% operates in the top operating margin quartile, ahead of Tower Semiconductor (TSEM) at 24.16%, which runs around its industry’s norm.

KLAC

Semiconductors & Semiconductor Equipment industry group

45.01%

Max
58.66%
KLAC
45.01%
Q3
30.23%
Median
15.91%
Q1
7.54%
Min
-25.74%

TSEM

Semiconductors & Semiconductor Equipment industry group

24.16%

Max
58.66%
Q3
30.23%
TSEM
24.16%
Median
15.91%
Q1
7.54%
Min
-25.74%
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KLA (KLAC) vs. Tower Semiconductor (TSEM): A comparison of their operating margin against the Semiconductors & Semiconductor Equipment industry group benchmark.

Profitability Metrics

Profitability metrics for KLA (KLAC) and Tower Semiconductor (TSEM)
MetricKLACTSEM
ROE (TTM)91.38%11.86%
ROA (TTM)22.27%6.07%
Net Margin (TTM)36.25%19.36%
Operating Margin (TTM)45.01%24.16%
Gross Margin (TTM)61.47%29.62%

Growth

Revenue Growth

Both KLA (KLAC) at 11.71% and Tower Semiconductor (TSEM) at 9.05% land near their industries' usual revenue growth ranges, so top-line momentum looks broadly in line with peers on both sides.

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KLA (KLAC) vs. Tower Semiconductor (TSEM): A comparison of their Revenue Growth across different time periods.

EPS Growth

Both KLA (KLAC) at 20.51% and Tower Semiconductor (TSEM) at 4.86% land near their industries' usual EPS growth ranges, so bottom-line momentum looks broadly in line with peers on both sides.

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KLA (KLAC) vs. Tower Semiconductor (TSEM): A comparison of their EPS Growth across different time periods.

Growth Metrics

Growth metrics for KLA (KLAC) and Tower Semiconductor (TSEM)
MetricKLACTSEM
Revenue Growth (YoY)11.71%9.05%
Revenue Growth (3Y CAGR)8.96%-2.27%
EPS Growth (YoY)20.51%4.86%
EPS Growth (3Y CAGR)14.87%-6.72%

Financial Strength

Current Ratio (MRQ)

Both KLA (KLAC) at 2.76 and Tower Semiconductor (TSEM) at 3.72 carry current ratio within their industries’ typical mid-ranges, suggesting balanced short-term liquidity relative to peers.

KLAC

Semiconductors & Semiconductor Equipment industry group

2.76

Max
10.33
Q3
5.62
Median
3.33
KLAC
2.76
Q1
2.35
Min
1.03

TSEM

Semiconductors & Semiconductor Equipment industry group

3.72

Max
10.33
Q3
5.62
TSEM
3.72
Median
3.33
Q1
2.35
Min
1.03
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KLA (KLAC) vs. Tower Semiconductor (TSEM): A comparison of their current ratio against the Semiconductors & Semiconductor Equipment industry group benchmark.

Debt / Equity (MRQ)

Tower Semiconductor (TSEM) at 0.05 carries an industry-typical debt-to-equity mix, while KLA (KLAC) at 0.92 uses more debt funding than most peers.

KLAC

Semiconductors & Semiconductor Equipment industry group

0.92

Max
1.46
KLAC
0.92
Q3
0.65
Median
0.27
Q1
0.04
Min
0.00

TSEM

Semiconductors & Semiconductor Equipment industry group

0.05

Max
1.46
Q3
0.65
Median
0.27
TSEM
0.05
Q1
0.04
Min
0.00
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KLA (KLAC) vs. Tower Semiconductor (TSEM): A comparison of their debt-to-equity ratio against the Semiconductors & Semiconductor Equipment industry group benchmark.

Financial Strength Metrics

Financial strength metrics for KLA (KLAC) and Tower Semiconductor (TSEM)
MetricKLACTSEM
Current Ratio (MRQ)2.763.72
Debt / Equity (MRQ)0.920.05
Net Debt / EBITDA0.19-1.92

Dividends

Dividend Yield (TTM)

Tower Semiconductor (TSEM) pays no dividend (yield 0.00%) — it may be reinvesting, using buybacks, or simply not returning cash through dividends. Meanwhile KLA (KLAC) reports a yield of 0.65%, ranking against industry peers normally.

KLAC

Semiconductors & Semiconductor Equipment industry group

0.65%

Max
1.37%
Q3
0.65%
KLAC
0.65%
Median
0.00%
Q1
0.00%
Min
0.00%

TSEM

Semiconductors & Semiconductor Equipment industry group

0.00%

Max
1.37%
Q3
0.65%
TSEM
0.00%
Median
0.00%
Q1
0.00%
Min
0.00%
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KLA (KLAC) vs. Tower Semiconductor (TSEM): A comparison of their dividend yield against the Semiconductors & Semiconductor Equipment industry group benchmark.

Dividend Payout Ratio (TTM)

Tower Semiconductor (TSEM) pays no dividend (payout 0.00%) — it may be reinvesting, using buybacks, or simply not returning cash through dividends. Meanwhile KLA (KLAC) reports a payout of 21.03%, ranking against industry peers normally.

KLAC

Semiconductors & Semiconductor Equipment industry group

21.03%

Max
49.64%
Q3
21.71%
KLAC
21.03%
Median
0.00%
Q1
0.00%
Min
0.00%

TSEM

Semiconductors & Semiconductor Equipment industry group

0.00%

Max
49.64%
Q3
21.71%
TSEM
0.00%
Median
0.00%
Q1
0.00%
Min
0.00%
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KLA (KLAC) vs. Tower Semiconductor (TSEM): A comparison of their payout ratio against the Semiconductors & Semiconductor Equipment industry group benchmark.

Dividend Metrics

Dividend metrics for KLA (KLAC) and Tower Semiconductor (TSEM)
MetricKLACTSEM
Dividend Yield (TTM)0.65%0.00%
Dividend Payout Ratio (TTM)21.03%0.00%

Valuation

P/E Ratio (TTM)

Both KLA (KLAC) at 34.71 and Tower Semiconductor (TSEM) at 44.16 land around their industries’ usual P/E ratio levels — neither is getting a clear earnings-multiple discount or premium versus peers.

KLAC

Semiconductors & Semiconductor Equipment industry group

34.71

Max
110.34
Q3
66.81
Median
37.02
KLAC
34.71
Q1
23.96
Min
8.12

TSEM

Semiconductors & Semiconductor Equipment industry group

44.16

Max
110.34
Q3
66.81
TSEM
44.16
Median
37.02
Q1
23.96
Min
8.12
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KLA (KLAC) vs. Tower Semiconductor (TSEM): A comparison of their P/E ratio against the Semiconductors & Semiconductor Equipment industry group benchmark.

P/S Ratio (TTM)

Tower Semiconductor (TSEM) at 8.47 is priced about in line with its industry on P/S ratio, while KLA (KLAC) at 12.44 sits in the pricier quartile — KLAC costs more per dollar of sales.

KLAC

Semiconductors & Semiconductor Equipment industry group

12.44

Max
21.42
KLAC
12.44
Q3
12.27
Median
5.76
Q1
2.73
Min
0.00

TSEM

Semiconductors & Semiconductor Equipment industry group

8.47

Max
21.42
Q3
12.27
TSEM
8.47
Median
5.76
Q1
2.73
Min
0.00
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KLA (KLAC) vs. Tower Semiconductor (TSEM): A comparison of their P/S ratio against the Semiconductors & Semiconductor Equipment industry group benchmark.

P/B Ratio (MRQ)

Tower Semiconductor (TSEM) at 4.85 sits near its industry’s typical P/B ratio, while KLA (KLAC) at 27.67 prices above its benchmark range — KLAC looks rich relative to book.

KLAC

Semiconductors & Semiconductor Equipment industry group

27.67

KLAC
27.67
Max
14.06
Q3
7.44
Median
4.29
Q1
2.30
Min
0.20

TSEM

Semiconductors & Semiconductor Equipment industry group

4.85

Max
14.06
Q3
7.44
TSEM
4.85
Median
4.29
Q1
2.30
Min
0.20
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KLA (KLAC) vs. Tower Semiconductor (TSEM): A comparison of their P/B ratio against the Semiconductors & Semiconductor Equipment industry group benchmark.

Valuation Metrics

Valuation metrics for KLA (KLAC) and Tower Semiconductor (TSEM)
MetricKLACTSEM
P/E Ratio (TTM)34.7144.16
P/S Ratio (TTM)12.448.47
P/B Ratio (MRQ)27.674.85
Free Cash Flow Yield (TTM)1.56%1.59%