Compare Stocks › KLAC vs TXN
KLA Corporation (KLAC) vs Texas Instruments Incorporated (TXN)
KLAC
KLA Corporation
$1511.52
VS
TXN
Texas Instruments Incorporated
$188.29
Rewards
KLAC
- ★KLA Corporation has maintained ROIC above 15% for 4 consecutive years, indicating a durable competitive advantage.
- ★Gross margin of 61.6% indicates strong pricing power — typical of businesses with significant intellectual property or brand strength.
- ★KLA Corporation scores 85/100 on the Economic Moat Score (Wide Moat), with reinvestment efficiency as the strongest competitive dimension.
TXN
- ★Texas Instruments Incorporated has maintained ROIC above 10% for 4 consecutive years, suggesting solid business economics.
- ★Return on equity has consistently exceeded 20% over 4 years, indicating efficient use of shareholder capital.
- ★Each dollar of retained earnings has created $3.91 of market value — management is an exceptional capital allocator.
Risks
KLAC
- ⚠FCF yield of 1.6% is below 3%, meaning the market is pricing in substantial future growth to justify the current price.
- ⚠Trailing P/E of 44.1x is 70% above the historical average of 25.9x — the stock trades at a premium to its own history.
- ⚠18 insider sales with no purchases over the past 12 months — a persistent pattern of insider selling.
TXN
- ⚠Trailing P/E of 34.6x is 28% above the historical average of 27.1x — the stock trades at a premium to its own history.
- ⚠7 insider sales totaling $26.5M with no purchases in the past 3 months — insiders are reducing their exposure.
- ⚠Free cash flow has declined at a 24.0% CAGR over the past 4 years — a concerning trend.
Key Valuation Metrics
Learn more →KLAC
TXN
Valuation
$3.22B
Free Cash Flow
$-300.62M
1.62%
FCF Yield
-0.18%
44.05
Trailing P/E
34.61
31.69
Forward P/E
23.81
Quality & Moat
35.93%
ROIC
15.31%
74.31%
ROE
30.73%
61.57%
Gross Margin
57.02%
1.08
PEG Ratio
N/A
Balance Sheet Safety
1.12
Debt / Equity
0.91
N/A
Interest Coverage
N/A
0.16
Net Debt / EBITDA
1.23
0.50%
Dividend Yield
3.02%
KLAC: 6Ties: 1TXN: 4
KLACTXN
Historical Fundamentals
Learn more →KLAC
Price ÷ Earnings Per Share — how many years of current earnings you're paying for at today's price. Lower P/E may indicate undervaluation.
TXN
Price ÷ Earnings Per Share — how many years of current earnings you're paying for at today's price. Lower P/E may indicate undervaluation.
Price ÷ Earnings Per Share — how many years of current earnings you're paying for at today's price. Lower P/E may indicate undervaluation.
$1 Retained Earnings Test
Learn more →KLAC
$13.71
created per $1 retained over 3 years
Exceptional Value Creator
Σ Retained
$7.80B
Δ Market Cap
+$106.95B
Buffett's "$1 Test": For every $1 of earnings retained, has management created at least $1 of market value?
> $1 created per $1 retained = Value Creator · < $1 created = Value Destroyer
> $1 created per $1 retained = Value Creator · < $1 created = Value Destroyer
TXN
$3.91
created per $1 retained over 3 years
Exceptional Value Creator
Σ Retained
$1.96B
Δ Market Cap
+$7.67B
Buffett's "$1 Test": For every $1 of earnings retained, has management created at least $1 of market value?
> $1 created per $1 retained = Value Creator · < $1 created = Value Destroyer
> $1 created per $1 retained = Value Creator · < $1 created = Value Destroyer
Buffett's "$1 Test": For every $1 of earnings retained, has management created at least $1 of market value?
> $1 created per $1 retained = Value Creator · < $1 created = Value Destroyer
Discounted Cash Flow (DCF) Analysis
Learn more →KLAC
32.5% Margin of Safety
Price is 32.5% below estimated fair value
Current Price: $1511.52
Strongly undervalued
Undervalued
Fairly valued
Overvalued
Strongly overvalued
Fair Value: $2240.58
Strongly undervalued
Undervalued
Fairly valued
Overvalued
Strongly overvalued
TXN
28.7% Margin of Safety
Price is 28.7% below estimated fair value
Current Price: $188.29
Strongly undervalued
Undervalued
Fairly valued
Overvalued
Strongly overvalued
Fair Value: $264.10
Strongly undervalued
Undervalued
Fairly valued
Overvalued
Strongly overvalued
Reverse DCF — Market-Implied Growth
Learn more →KLAC
What growth rate is the market pricing in at $1512?
+20.0%
Market-Implied Owner Earnings Growth
Standard FCF implies +23.1%
The market implies +20.0% Owner Earnings growth, above historical trends.
Standard FCF implies a demanding +23.1%, reflecting heavy growth investment.
TXN
Requires positive FCF to compute implied growth rate.
Economic Moat Score
Learn more →KLAC
85/100
Wide Moat
70+ Wide · 40-69 Narrow · <40 None
Wide moat driven primarily by reinvestment efficiency. Revenue Predictability is the area most vulnerable to competitive pressure.
Composite score measuring competitive advantage durability across four dimensions: returns above cost of capital, pricing power stability, revenue predictability, and capital efficiency. Based on 5 years of fundamental data.
TXN
48/100
Narrow Moat
70+ Wide · 40-69 Narrow · <40 None
Narrow moat with roic consistency as the key competitive advantage. Improving reinvestment efficiency would strengthen the moat.
Composite score measuring competitive advantage durability across four dimensions: returns above cost of capital, pricing power stability, revenue predictability, and capital efficiency. Based on 4 years of fundamental data.
Forensic Accounting
Learn more →KLAC
-2.24
Unlikely Manipulator
Above -1.78 = likely manipulator · -2.22 to -1.78 = grey zone
M-Score Trend
Beneish's 8-variable model estimates the probability of earnings manipulation. An M-Score above -1.78 signals elevated risk — companies in this range have historically been 3-5× more likely to be manipulating earnings. Scores between -2.22 and -1.78 fall in a grey zone warranting further investigation.
TXN
-2.67
Unlikely Manipulator
Above -1.78 = likely manipulator · -2.22 to -1.78 = grey zone
M-Score Trend
Beneish's 8-variable model estimates the probability of earnings manipulation. An M-Score above -1.78 signals elevated risk — companies in this range have historically been 3-5× more likely to be manipulating earnings. Scores between -2.22 and -1.78 fall in a grey zone warranting further investigation.
Beneish's 8-variable model estimates the probability of earnings manipulation. An M-Score above -1.78 signals elevated risk — companies in this range have historically been 3-5× more likely to be manipulating earnings. Scores between -2.22 and -1.78 fall in a grey zone warranting further investigation.
Ownership Breakdown
Learn more →KLAC
Insiders 0.1%Institutions 93.9%Retail & Other 6.0%
No. of Institutional Holders2,619
High insider ownership aligns management incentives with shareholders — a key signal in Buffett-style analysis. Institutional concentration can indicate smart-money conviction but also crowding risk.
TXN
Insiders 0.3%Institutions 91.3%Retail & Other 8.4%
No. of Institutional Holders3,137
High insider ownership aligns management incentives with shareholders — a key signal in Buffett-style analysis. Institutional concentration can indicate smart-money conviction but also crowding risk.
High insider ownership aligns management incentives with shareholders. Institutional concentration can indicate smart-money conviction but also crowding risk.
Insider Buying Activity
Learn more →KLAC
0
Buys (3M)
0
Buys (12M)
No open market insider purchases found.
Open market purchases · includes direct & indirect ownership · excludes option exercises
TXN
0
Buys (3M)
0
Buys (12M)
No open market insider purchases found.
Open market purchases · includes direct & indirect ownership · excludes option exercises
Open market purchases · includes direct & indirect ownership · excludes option exercises.
Insider Selling Activity
Learn more →KLAC
0
Sells (3M)
18
Sells (12M)
Total value (12M): $70.12M
HIGGINS BREN D.
Chief Financial Officer
$2.79M
@ $1237.01 · 2025-12-16
WALLACE RICHARD P
Chief Executive Officer
$13.00M
@ $1203.10 · 2025-11-11
KHAN AHMAD A
Officer
$4.11M
@ $900.00 · 2025-09-05
KHAN AHMAD A
Officer
$12.09M
@ $881.50 · 2025-08-29
HIGGINS BREN D.
Chief Financial Officer
$2.02M
@ $878.53 · 2025-08-20
LORIG BRIAN W.
Officer
$7.35M
@ $913.68 · 2025-08-12
WALLACE RICHARD P
Chief Executive Officer
$9.87M
@ $913.68 · 2025-08-12
KIRLOSKAR VIRENDRA A
Officer
$308,594
@ $913.00 · 2025-08-08
WILKINSON MARY BETH
Officer
$933,086
@ $913.00 · 2025-08-08
KIRLOSKAR VIRENDRA A
Officer
$468,587
@ $917.00 · 2025-08-05
WILKINSON MARY BETH
Officer
$1.76M
@ $917.00 · 2025-08-05
KIRLOSKAR VIRENDRA A
Officer
$286,960
@ $896.75 · 2025-08-04
WILKINSON MARY BETH
Officer
$684,220
@ $896.75 · 2025-08-04
KIRLOSKAR VIRENDRA A
Officer
$34,768
@ $891.49 · 2025-07-02
WILKINSON MARY BETH
Officer
$1.18M
@ $891.16 · 2025-06-30
HIGGINS BREN D.
Chief Financial Officer
$781,023
@ $766.46 · 2025-05-22
WALLACE RICHARD P
Chief Executive Officer
$7.38M
@ $683.30 · 2025-05-06
HIGGINS BREN D.
Chief Financial Officer
$5.08M
@ $724.62 · 2025-03-25
WALLACE RICHARD P
Chief Executive Officer
$9.49M
@ $663.01 · 2024-11-12
KHAN AHMAD A
Officer
$7.92M
@ $818.51 · 2024-08-19
HIGGINS BREN D.
Chief Financial Officer
$3.97M
@ $740.63 · 2024-08-07
LORIG BRIAN W.
Officer
$1.51M
@ $740.63 · 2024-08-07
KIRLOSKAR VIRENDRA A
Officer
$573,878
@ $705.01 · 2024-08-06
LORIG BRIAN W.
Officer
$910,168
@ $705.01 · 2024-08-06
WALLACE RICHARD P
Chief Executive Officer
$12.29M
@ $705.01 · 2024-08-06
KIRLOSKAR VIRENDRA A
Officer
$536,118
@ $649.84 · 2024-08-05
LORIG BRIAN W.
Officer
$460,737
@ $649.84 · 2024-08-05
WILKINSON MARY BETH
Officer
$1.70M
@ $652.17 · 2024-08-05
KIRLOSKAR VIRENDRA A
Officer
$36,054
@ $819.41 · 2024-07-02
LORIG BRIAN W.
Officer
$36,054
@ $819.41 · 2024-07-02
HIGGINS BREN D.
Chief Financial Officer
$803,563
@ $788.58 · 2024-05-23
KHAN AHMAD A
Officer
$5.95M
@ $760.00 · 2024-05-21
WALLACE RICHARD P
Chief Executive Officer
$10.04M
@ $716.63 · 2024-05-07
LORIG BRIAN W.
Officer
$2.47M
@ $699.16 · 2024-05-06
HIGGINS BREN D.
Chief Financial Officer
$4.95M
@ $705.04 · 2024-03-26
DONZELLA ORESTE
Officer
$2.27M
@ $697.85 · 2024-03-25
Direct ownership only · excludes indirect, option exercises, planned (10b5-1) sales & derivatives
TXN
7
Sells (3M)
10
Sells (12M)
Total value (12M): $28.61M
KOZANIAN HAGOP H
Officer
$1.55M
@ $225.95 · 2026-02-17
LIZARDI RAFAEL R
Chief Financial Officer
$15.88M
@ $221.73 · 2026-02-11
GARY MARK
Officer
$5.24M
@ $226.00 · 2026-02-11
BAHAI AHMAD
Officer
$1.50M
@ $230.79 · 2026-02-11
ROBERTS MARK T
Officer
$986,604
@ $221.16 · 2026-02-09
BLINN MARK A
Director
$696,647
@ $221.58 · 2026-02-05
BAHAI AHMAD
Officer
$670,387
@ $223.46 · 2026-02-05
KIRK RONALD
Director
$1.62M
@ $162.33 · 2025-11-24
WITZSCHE CHRISTINE
Officer
$164,306
@ $164.31 · 2025-11-13
BAHAI AHMAD
Officer
$308,030
@ $205.35 · 2025-08-25
TEMPLETON RICHARD K
Chairman of the Board
$19.85M
@ $195.41 · 2025-02-28
TEMPLETON RICHARD K
Chairman of the Board
$38.65M
@ $199.20 · 2025-02-26
TEMPLETON RICHARD K
Chairman of the Board
$39.32M
@ $202.70 · 2025-02-24
CLARK JANET F
Director
$1.23M
@ $203.62 · 2025-02-24
BLINN MARK A
Director
$1.17M
@ $189.89 · 2025-02-19
LEONARD SHANON J
Officer
$401,241
@ $186.62 · 2025-02-18
BLINN MARK A
Director
$106,617
@ $180.71 · 2025-02-04
KIRK RONALD
Director
$2.14M
@ $203.33 · 2024-11-25
GARY MARK
Officer
$3.49M
@ $219.82 · 2024-11-08
ILAN HAVIV
Chief Executive Officer
$2.88M
@ $219.30 · 2024-11-08
LIZARDI RAFAEL R
Chief Financial Officer
$10.19M
@ $217.16 · 2024-11-07
YUNUS MOHAMMAD
Officer
$1.81M
@ $216.94 · 2024-11-07
BAHAI AHMAD
Officer
$472,514
@ $217.25 · 2024-11-07
GARY MARK
Officer
$940,296
@ $214.83 · 2024-11-06
WITZSCHE CHRISTINE
Officer
$27,941
@ $211.67 · 2024-11-06
ILAN HAVIV
Chief Executive Officer
$5.29M
@ $211.50 · 2024-11-06
SANCHEZ ROBERT E
Director
$2.09M
@ $208.80 · 2024-10-25
RON AMICHAI
Officer
$2.76M
@ $213.72 · 2024-08-29
GARY MARK
Officer
$3.22M
@ $212.63 · 2024-08-29
ROBERTS MARK T
Officer
$1.00M
@ $213.08 · 2024-08-29
PATSLEY PAMELA H
Director
$1.29M
@ $212.43 · 2024-08-29
BAHAI AHMAD
Officer
$892,427
@ $209.98 · 2024-08-27
ILAN HAVIV
Chief Executive Officer
$251,324
@ $209.44 · 2024-08-26
YUNUS MOHAMMAD
Officer
$789,215
@ $208.90 · 2024-08-26
GARY MARK
Officer
$939,037
@ $207.20 · 2024-08-23
KNECHT JULIE C.
Officer
$1.63M
@ $209.49 · 2024-08-23
LEONARD SHANON J
Officer
$588,301
@ $208.91 · 2024-08-23
HOBBY JEAN M
Director
$4.37M
@ $205.71 · 2024-08-22
TEMPLETON RICHARD K
Chairman of the Board
$17.93M
@ $178.47 · 2024-05-03
TEMPLETON RICHARD K
Chairman of the Board
$36.53M
@ $175.64 · 2024-05-02
SANCHEZ ROBERT E
Director
$1.84M
@ $174.97 · 2024-05-01
TEMPLETON RICHARD K
Chairman of the Board
$37.09M
@ $178.34 · 2024-04-30
PATSLEY PAMELA H
Director
$1.79M
@ $179.12 · 2024-04-29
Direct ownership only · excludes indirect, option exercises, planned (10b5-1) sales & derivatives
Direct ownership only · excludes indirect, option exercises, planned (10b5-1) sales & derivatives.
🎭 Mr. Market's Mood
Learn more →KLAC
😐Neutral(56/100)
"Market is pricing this stock without strong emotion in either direction"
Composite sentiment score based on 6 market signals. Inspired by Buffett's "Mr. Market" allegory — fear = potential opportunity, greed = potential risk. Must be used alongside fundamental analysis, not in isolation.
TXN
😐Neutral(46/100)
"Market is pricing this stock without strong emotion in either direction"
Composite sentiment score based on 6 market signals. Inspired by Buffett's "Mr. Market" allegory — fear = potential opportunity, greed = potential risk. Must be used alongside fundamental analysis, not in isolation.
Composite sentiment score based on market signals. Inspired by Buffett’s "Mr. Market" allegory — fear = potential opportunity, greed = potential risk. Must be used alongside fundamental analysis, not in isolation.
⚖️ Buffett Signal
Learn more →KLAC
⚪Awaiting DCF Data
The Buffett Signal cross-references market sentiment with DCF valuation. Configure the DCF Analysis above to generate a signal.
DCF Margin of Safety: N/AMr. Market's Mood: Neutral (56)
TXN
⚪Awaiting DCF Data
The Buffett Signal cross-references market sentiment with DCF valuation. Configure the DCF Analysis above to generate a signal.
DCF Margin of Safety: N/AMr. Market's Mood: Neutral (46)