ASML vs ONTO vs AMAT vs LRCX vs KLAC

For growth investors, KLA Corporation (KLAC) is the stronger pick with 23.

9% revenue growth year-over-year, versus 1. 8% for Onto Innovation Inc. (ONTO). Applied Materials, Inc. (AMAT) offers the better valuation at 47. 4x trailing P/E (37. 1x forward), making it the more compelling value choice. Analysts rate ASML Holding N. V. (ASML) a "Buy" — based on 45 analyst ratings — the highest consensus in this comparison. The "better buy" depends entirely on your goals: growth investors should weight revenue trajectory, value investors should weight P/E and PEG, and income investors should weight dividend yield and streak.

On trailing P/E, Applied Materials, Inc.

(AMAT) is the cheapest at 47. 4x versus Onto Innovation Inc. at 98. 6x. On forward P/E, Applied Materials, Inc. is actually cheaper at 37. 1x. The PEG ratio (P/E divided by earnings growth rate) is the most growth-adjusted single valuation metric: Onto Innovation Inc. wins at 1. 12x versus Lam Research Corporation's 2. 26x — a reasonable growth-adjusted valuation.

Over the past 5 years, KLA Corporation (KLAC) delivered a total return of +460.

4%, compared to +135. 5% for ASML Holding N. V. (ASML). Over 10 years, the gap is even starker: LRCX returned +38. 2% versus ONTO's +1432%. Past returns do not guarantee future results, and the stock with the higher historical return may already have its best growth priced in.

By beta (market sensitivity over 5 years), ASML Holding N.

V. (ASML) is the lower-risk stock at 1. 91β versus Onto Innovation Inc. 's 2. 66β — meaning ONTO is approximately 39% more volatile than ASML relative to the S&P 500. On balance sheet safety, Onto Innovation Inc. (ONTO) carries a lower debt/equity ratio of 1% versus 130% for KLA Corporation — giving it more financial flexibility in a downturn.

By revenue growth (latest reported year), KLA Corporation (KLAC) is pulling ahead at 23.

9% versus 1. 8% for Onto Innovation Inc. (ONTO). On earnings-per-share growth, the picture is similar: KLA Corporation grew EPS 49. 8% year-over-year, compared to -31. 5% for Onto Innovation Inc.. Over a 3-year CAGR, ASML leads at 14. 0% annualised revenue growth. Higher growth typically commands a higher valuation multiple — check whether the premium P/E or P/S is justified by the growth rate using the PEG ratio.

KLA Corporation (KLAC) is the more profitable company, earning 33.

4% net margin versus 13. 6% for Onto Innovation Inc. — meaning it keeps 33. 4% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: KLAC leads at 43. 1% versus 13. 2% for ONTO. At the gross margin level — before operating expenses — KLAC leads at 62. 3%, reflecting greater pricing power or product mix advantage. Stronger margins indicate durable pricing power, lower cost of revenue, or higher mix of software/services. They are one of the clearest signs of business quality.

The PEG ratio (forward P/E divided by expected earnings growth rate) is the most precise measure of undervaluation relative to growth potential.

By this metric, Onto Innovation Inc. (ONTO) is the more undervalued stock at a PEG of 1. 12x versus Lam Research Corporation's 2. 26x. A PEG below 1. 5 suggests fair-to-attractive pricing relative to expected growth. On forward earnings alone, Applied Materials, Inc. (AMAT) trades at 37. 1x forward P/E versus 50. 7x for Lam Research Corporation — 13. 6x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for ONTO: 12. 5% to $308. 33.

In this comparison, ASML (0.

5% yield), AMAT (0. 4% yield), KLAC (0. 4% yield), LRCX (0. 3% yield) pay a dividend. ONTO does not pay a meaningful dividend and should not be held primarily for income.

For long-horizon retirement investors, ASML Holding N.

V. (ASML) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (+1580% 10Y return). Applied Materials, Inc. (AMAT) carries a higher beta of 2. 14 — meaning larger drawdowns in market downturns, which matters significantly when you cannot wait years for a recovery. Both have compounded well over 10 years (ASML: +1580%, AMAT: +20. 1%), confirming both are viable long-term holds — but the lower-volatility option typically results in less emotional selling during corrections. Retirement portfolios generally favour predictability over maximum returns. Consult a financial advisor before making allocation decisions.

Both stocks operate in the Technology sector, making this a peer-level intra-sector comparison — the same macro tailwinds and headwinds will affect both.

In terms of investment character: ASML is a large-cap quality compounder stock; ONTO is a mid-cap quality compounder stock; AMAT is a large-cap quality compounder stock; LRCX is a large-cap high-growth stock; KLAC is a large-cap high-growth stock. These fundamental differences mean investors should not choose between them on a single metric — the "better stock" depends entirely on which of these characteristics aligns with your investment strategy.