Quick verdict: ADI vs KLAC in 2026

In this ADI vs KLAC stock comparison for 2026, Analog Devices (ADI) holds an overall edge based on a broader range of financial and analyst metrics. KLA Corporation (KLAC) exhibits stronger revenue growth and superior net margins, making it a compelling choice for growth-oriented investors. However, ADI presents a more attractive valuation in terms of price-to-book and DCF upside, coupled with a stronger analyst consensus and positive price target upside. Not investment advice.

ADI vs KLAC: key metrics side by side

Full side-by-side comparison of ADI and KLAC across valuation, profitability, growth and analyst sentiment. Data updated 2026-04-14.

ADI vs KLAC valuation comparison

When evaluating the adi vs klac fundamentals and valuation in 2026, KLA Corporation (KLAC) appears to have a lower trailing twelve-month P/E ratio of 51.71x compared to Analog Devices (ADI) at 62.99x. This metric alone might suggest KLAC is trading at a more attractive earnings multiple. However, the picture shifts when considering other valuation metrics. ADI boasts a significantly lower Price-to-Book (P/B) ratio of 5.05x, which is considerably more appealing than KLAC’s elevated P/B of 43.12x, indicating that ADI’s stock price is much closer to its book value per share.

Furthermore, a Discounted Cash Flow (DCF) analysis suggests a substantial undervaluation for both companies, but to different degrees. ADI’s DCF indicates a potential downside of -29.9%, meaning its current price of $348.78 is significantly above its calculated intrinsic value of $244.38. In contrast, KLAC faces an even steeper implied undervaluation, with its DCF pointing to a -62.9% downside from its current price of $1792.04 against an intrinsic value of $664.21. From a relative perspective on DCF, ADI shows a less severe disconnect between its market price and intrinsic value. Therefore, while KLAC has a lower P/E, ADI presents a more favorable valuation when considering both P/B and the relative DCF undervaluation, suggesting it is comparatively cheaper in terms of asset backing and has a less pronounced overvaluation by DCF.

ADI vs KLAC growth comparison

In the adi vs klac stock comparison 2026 for growth metrics, KLA Corporation (KLAC) demonstrates a stronger recent revenue growth trajectory. KLAC reported an impressive year-over-year revenue growth of +23.9%, outpacing Analog Devices (ADI), which grew its revenue by +16.9%. KLAC’s larger revenue base of $12.16 billion also slightly exceeds ADI’s $11.02 billion. This indicates that KLAC has stronger momentum in expanding its top-line performance, possibly driven by robust demand for its semiconductor manufacturing equipment and services.

Looking beyond top-line expansion, both companies exhibit strong profitability margins that contribute to their overall growth potential. ADI has an EBITDA margin of 46.99%, slightly higher than KLAC’s 46.37%. However, KLAC significantly outperforms ADI in net margin, achieving 35.76% compared to ADI’s 23.02%. This suggests that while ADI is efficient at the operational level, KLAC is more effective at converting its revenue into net income. Investors prioritizing companies with high revenue growth and superior net profitability might find KLAC’s recent performance more compelling, indicating a stronger fundamental position for sustaining future growth.

ADI vs KLAC profitability

Examining the profitability of ADI vs KLAC reveals distinct strengths. KLA Corporation (KLAC) stands out with a significantly higher net profit margin of 35.76%, which is substantially more robust than Analog Devices’ (ADI) 23.02%. This indicates that KLAC is considerably more efficient at translating its revenue into actual profit, suggesting better cost management or higher-margin products and services within its business model. While ADI’s net margin is still healthy, KLAC’s performance here gives it a clear edge in overall profitability.

When considering cash generation, ADI takes the lead with a Free Cash Flow (FCF) yield of 2.68%, surpassing KLAC’s 1.86%. This metric suggests that ADI is generating more cash relative to its market capitalization, which is a positive sign for investors looking for strong liquidity and financial flexibility. Both companies report “N/A%” for Return on Equity (ROE), meaning this metric is not available for direct comparison. Overall, while KLAC excels in net margin, ADI’s superior FCF yield highlights its strong operational cash generation capabilities, making it an attractive option for investors focused on cash-flow efficiency.

Analyst ratings: ADI vs KLAC

When comparing ADI vs KLAC stock recommendations from Wall Street analysts, Analog Devices (ADI) receives a more favorable consensus. Out of 54 analysts covering ADI, a strong 79.6% recommend it as a “Buy,” leading to an overall “Buy” consensus rating. Furthermore, these analysts have set a consensus price target of $374.42, implying a positive upside of +7.4% from its current price of $348.78. This indicates strong confidence in ADI’s future performance and potential for capital appreciation according to the analyst community.

KLA Corporation (KLAC), while also having an overall “Buy” consensus rating, shows slightly less enthusiasm from analysts. Of the 43 analysts covering KLAC, 62.8% have a “Buy” rating. The consensus price target for KLAC is $1696.31, which, against its current price of $1792.04, suggests a potential downside of -5.3%. This difference in target price upside is a key differentiator when considering should i buy adi or klac stock 2026 based on expert opinions. ADI clearly garners a more bullish outlook, with a higher percentage of buy ratings and a positive price target upside, contrasting with KLAC’s implied dip according to current analyst targets.

Should I buy ADI or KLAC stock in 2026?

For growth-focused investors considering should i buy adi or klac stock 2026, KLA Corporation (KLAC) presents a compelling argument with its superior revenue growth rate of +23.9% year-over-year, significantly higher than ADI’s +16.9%. KLAC also boasts a higher net margin of 35.76% compared to ADI’s 23.02%, indicating greater efficiency in converting revenue to profit. These metrics suggest KLAC has stronger momentum and profitability, making it potentially more attractive for those prioritizing rapid top-line expansion and robust bottom-line performance.

When it comes to value investing, the adi vs klac fundamentals and valuation offer a mixed picture, but ADI appears to have a stronger case. While KLAC has a lower P/E ratio of 51.71x versus ADI’s 62.99x, ADI’s Price-to-Book ratio of 5.05x is substantially lower than KLAC’s 43.12x. More importantly, ADI’s DCF valuation shows a less severe undervaluation at -29.9% compared to KLAC’s -62.9%. This suggests that ADI, despite its higher P/E, might offer a more reasonable entry point relative to its assets and long-term intrinsic value when considering a broader set of valuation metrics.

For income investors, ADI holds a slight advantage, offering a modest dividend yield of 0.01%, whereas KLAC currently has a 0.0% dividend yield. While neither stock is a significant income play, ADI’s token dividend provides a minimal return for those seeking some form of income. Coupled with a stronger analyst consensus (79.6% Buy for ADI vs 62.8% for KLAC) and a positive price target upside of +7.4% for ADI, versus a -5.3% downside for KLAC, Analog Devices seems to offer a more balanced risk-reward profile for diversified portfolios in 2026. This is not investment advice; please conduct your own thorough research.

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