Contrasting KLA (NASDAQ:KLAC) and Screen (OTCMKTS:DINRF)

Screen (OTCMKTS:DINRF) and KLA (NASDAQ:KLAC) are both technology companies, but which is the superior investment? We will compare the two companies based on the strength of their earnings, valuation, dividends, risk, institutional ownership, analyst recommendations and profitability.

Volatility & Risk

Screen has a beta of 1.51, meaning that its share price is 51% more volatile than the S&P 500. Comparatively, KLA has a beta of 1.45, meaning that its share price is 45% more volatile than the S&P 500.

Earnings & Valuation

This table compares Screen and KLA”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Screen	$4.02 billion	1.94	$607.23 million	$4.10	20.18
KLA	$13.58 billion	18.06	$4.83 billion	$3.67	51.20

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

Analyst Ratings

This is a summary of recent ratings and target prices for Screen and KLA, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Screen	1	0	0	0	1.00
KLA	0	9	19	1	2.72

KLA has a consensus price target of $222.22, indicating a potential upside of 18.25%. Given KLA’s stronger consensus rating and higher probable upside, analysts clearly believe KLA is more favorable than Screen.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Screen	14.32%	19.03%	12.23%
KLA	35.57%	87.66%	29.23%

Institutional & Insider Ownership

86.7% of KLA shares are owned by institutional investors. 79.4% 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 is poised for long-term growth.

Summary

KLA beats Screen on 13 of the 15 factors compared between the two stocks.

About Screen

SCREEN Holdings Co., Ltd. develops, manufactures, sells, and maintains semiconductor production equipment in Japan, Taiwan, South Korea, China, the United States, Europe, and internationally. It operates in four segments: Semiconductor Production Equipment Business, Graphic Arts Equipment Business, Display Production Equipment and Coater Business, and PCB-Related Equipment Business. The company offers coat/develop trackers, wafer cleaning systems, annealing systems, measurement systems, inspection systems, and advanced packaging lithography equipment. It also provides coater systems, vacuum film deposition equipment, wet processors, dryers, heaters, exposures, and laminators/de-laminators. In addition, the company offers direct imaging systems, automatic optical inspection systems, automatic optical photomask inspection systems, and defect verification and repair systems; automatic final visual inspection systems; and setup stations and defect tabulation software. Further, it provides high-speed inkjet, label, wide format, CTP, network support, Hiragino font, and other workflow solutions; offset printing, digital book, manual, direct mail, transpromo, label production, package printing, display, and signage solutions; and artificial intelligence, text mining, augmented reality, image analysis, and congestion analysis solutions. Additionally, the company offers biosciences equipment; compact inkjet printing systems for tablets, UV inkjet printing systems for aluminum rolls, and inkjet printing systems for tablets; in-vehicle components for inspection and measurement; and lithium-ion rechargeable batteries and fuel cells. It also undertakes contract manufacturing and support, and intellectual property services related operations. The company was formerly known as Dainippon Screen Mfg. Co., Ltd. and changed its name to SCREEN Holdings Co., Ltd. in October 2014. SCREEN Holdings Co., Ltd. was founded in 1943 and is headquartered in Kyoto, Japan.

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.