Home > Comparison > Technology > KLAC vs CRUS
The strategic rivalry between KLA Corporation and Cirrus Logic defines the current trajectory of the semiconductor sector. KLA operates as a capital-intensive process control and yield management powerhouse, while Cirrus Logic excels as a fabless provider of high-precision mixed-signal processing solutions. This head-to-head pits scale and manufacturing expertise against niche innovation. This analysis aims to identify which corporate model delivers the superior risk-adjusted return for a diversified portfolio.
Table of contents
Companies Overview
KLA Corporation and Cirrus Logic stand as significant players in the semiconductor industry, shaping critical technology segments.
KLA Corporation: Semiconductor Process Control Leader
KLA Corporation dominates the semiconductor process control market. It generates revenue through advanced inspection, metrology, and yield management tools essential for chip manufacturing. In 2026, KLA focuses strategically on expanding its specialty semiconductor process and PCB inspection segments, reinforcing its integrated solutions that enhance manufacturing precision and yield for semiconductor fabs globally.
Cirrus Logic, Inc.: Mixed-Signal Audio Innovator
Cirrus Logic excels in low-power mixed-signal processing for audio applications. It earns revenue by selling codecs, amplifiers, and DSPs embedded in consumer electronics like smartphones and AR/VR devices. The company prioritizes innovation in SoundClear technology and power conversion ICs, driving growth through enhanced audio quality and energy-efficient performance in portable and industrial markets.
Strategic Collision: Similarities & Divergences
Both companies thrive in semiconductors but differ fundamentally. KLA pursues a hardware-software integrated control approach for semiconductor fabs. Cirrus focuses on fabless mixed-signal IC design targeting consumer and industrial audio markets. Their battle lies in semiconductor innovation but in distinct stages—manufacturing process control versus product integration. KLA’s scale and precision tools contrast sharply with Cirrus’s niche audio specialization, defining separate risk and growth profiles for investors.
Income Statement Comparison
This table dissects the core profitability and scalability of both corporate engines to reveal who dominates the bottom line:
| Metric | KLA Corporation (KLAC) | Cirrus Logic, Inc. (CRUS) |
|---|---|---|
| Revenue | 12.2B | 1.9B |
| Cost of Revenue | 4.6B | 900M |
| Operating Expenses | 2.3B | 586M |
| Gross Profit | 7.6B | 1.0B |
| EBITDA | 5.3B | 497M |
| EBIT | 4.9B | 445M |
| Interest Expense | 302M | 0.9M |
| Net Income | 4.1B | 332M |
| EPS | 30.53 | 6.24 |
| Fiscal Year | 2025 | 2025 |
Income Statement Analysis: The Bottom-Line Duel
This income statement comparison reveals which company operates its financial engine with superior efficiency and growth momentum.
KLA Corporation Analysis
KLA’s revenue surged from 6.9B in 2021 to 12.2B in 2025, nearly doubling its top line. Net income followed suit, rising from 2.1B to 4.1B, boosting net margin to a strong 33.4%. The company sustains a robust gross margin above 62%, reflecting tight cost control and operational leverage. Its 2025 results show accelerating profitability and margin expansion.
Cirrus Logic, Inc. Analysis
Cirrus Logic’s revenue increased steadily from 1.37B in 2021 to 1.9B in 2025, a 39% overall rise. Net income grew to 331M, improving net margin to 17.5%. Gross margin at 52.5% remains healthy, supporting solid operating leverage. Despite more modest scale, Cirrus demonstrates consistent margin improvement and efficient expense management in the latest year.
Margin Dominance vs. Consistent Growth
KLA dominates with superior scale and profitability, delivering a net margin nearly double Cirrus Logic’s. Its rapid revenue and earnings growth reflect strong competitive moats and capital allocation. Cirrus Logic shows consistent, steady growth with commendable margin gains but lags behind on absolute profitability. For investors, KLA’s profile offers higher returns powered by margin strength and momentum.
Financial Ratios Comparison
These vital ratios act as a diagnostic tool to expose the underlying fiscal health, valuation premiums, and capital efficiency of these companies:
| Ratios | KLA Corporation (KLAC) | Cirrus Logic, Inc. (CRUS) |
|---|---|---|
| ROE | 86.6% | 17.0% |
| ROIC | 38.0% | 14.2% |
| P/E | 29.3 | 15.9 |
| P/B | 25.4 | 2.7 |
| Current Ratio | 2.62 | 6.35 |
| Quick Ratio | 1.83 | 4.82 |
| D/E | 1.30 | 0.07 |
| Debt-to-Assets | 37.9% | 6.2% |
| Interest Coverage | 17.3 | 457.0 |
| Asset Turnover | 0.76 | 0.81 |
| Fixed Asset Turnover | 9.70 | 6.62 |
| Payout ratio | 22.3% | 0% |
| Dividend yield | 0.76% | 0% |
| Fiscal Year | 2025 | 2025 |
Efficiency & Valuation Duel: The Vital Signs
Financial ratios serve as a company’s DNA, uncovering hidden risks and spotlighting operational excellence.
KLA Corporation
KLA shows exceptional profitability with an 86.6% ROE and a strong 33.4% net margin, signaling operational dominance. However, its valuation is stretched, with a P/E of 29.3 and P/B of 25.4, indicating premium pricing. Shareholders see modest dividends (0.76%), balancing payout with reinvestment in R&D (11.1% of revenue).
Cirrus Logic, Inc.
Cirrus Logic operates efficiently with a 17.0% ROE and a 17.5% net margin, reflecting solid but moderate profitability. Its valuation is reasonable, with a P/E of 16.0 and P/B of 2.7, suggesting fair market pricing. The company pays no dividend, instead allocating nearly 23% of revenue to R&D, emphasizing growth and innovation.
Premium Valuation vs. Operational Safety
KLA trades at a premium with superior returns but carries valuation and debt risks. Cirrus offers a balanced valuation and strong financial health with lower profitability. Investors seeking growth at a premium may prefer KLA; those favoring stability and reinvestment might align better with Cirrus.
Which one offers the Superior Shareholder Reward?
I compared KLA Corporation (KLAC) and Cirrus Logic, Inc. (CRUS) on shareholder returns through dividends and buybacks. KLAC yields 0.76% with a conservative 22% payout ratio, well-covered by 92% FCF, and maintains steady buybacks fueling total return. CRUS pays no dividend but reinvests heavily in growth and R&D, supported by robust cash flow and minimal debt. However, KLAC’s balanced distribution model with dividends plus active buybacks offers a more sustainable and attractive total return profile for 2026 investors seeking income and capital appreciation.
Comparative Score Analysis: The Strategic Profile
The radar chart reveals the fundamental DNA and trade-offs of KLA Corporation and Cirrus Logic, Inc., highlighting their distinct financial strengths and vulnerabilities:
KLA excels in profitability with top ROE and ROA scores (5 each) but suffers from a weak balance sheet, reflected in its very unfavorable debt-to-equity and price-to-book scores (1 each). Cirrus Logic offers a more balanced profile, scoring favorably across DCF, ROE, debt-to-equity, and valuation metrics, indicating moderate risk and solid operational efficiency.
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Bankruptcy Risk: Solvency Showdown
Both KLA and Cirrus Logic sit comfortably in the safe zone with Altman Z-Scores above 12, signaling very low bankruptcy risk and strong long-term survival prospects in this cycle:
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Financial Health: Quality of Operations
KLA’s Piotroski F-Score of 8 shows very strong financial health, outperforming Cirrus Logic’s strong score of 7, though both maintain healthy internal metrics and operational quality:
How are the two companies positioned?
This section dissects the operational DNA of KLAC and CRUS by comparing their revenue distribution and internal dynamics. The goal is to confront their economic moats to identify which model offers the most resilient, sustainable competitive advantage today.
Revenue Segmentation: The Strategic Mix
This visual comparison dissects how KLA Corporation and Cirrus Logic diversify their income streams and where their primary sector bets lie:
KLA leans heavily on Defect Inspection, which dwarfs its other segments at $6.2B in 2025. It anchors its portfolio with Service ($2.7B) and Patterning ($2.2B), showing moderate diversification. Cirrus Logic relies largely on Portable Audio Products at $1.1B, with High-Performance Mixed Signal Products trailing at $759M. KLA’s broader mix signals ecosystem lock-in, while Cirrus’s concentration invites risk from shifting consumer trends.
Strengths and Weaknesses Comparison
This table compares the strengths and weaknesses of KLA Corporation and Cirrus Logic, Inc.:
KLA Corporation Strengths
- High net margin at 33.41%
- ROE of 86.56% reflects strong profitability
- Diverse semiconductor inspection and service revenue streams
- Significant global presence with substantial China and Taiwan sales
- Favorable liquidity ratios with current ratio 2.62 and quick ratio 1.83
- Strong fixed asset turnover at 9.7
Cirrus Logic Strengths
- Favorable net margin at 17.48% and ROE at 17.01%
- Low debt-to-equity ratio at 0.07 enhances financial stability
- Favorable interest coverage of 495.45 indicates robust earnings to cover debt
- Solid global presence with meaningful China and India markets
- Diverse product portfolio with mixed signal and portable audio products
- Favorable quick ratio at 4.82 reflects liquidity strength
KLA Corporation Weaknesses
- Elevated WACC at 10.42% relative to ROIC
- High P/E at 29.34 and P/B at 25.39 may indicate overvaluation
- Debt-to-equity at 1.3 raises leverage concerns
- Moderate dividend yield of 0.76% may deter income investors
- Neutral asset turnover at 0.76 suggests room for operational improvement
- Some revenue concentration in defect inspection segment
Cirrus Logic Weaknesses
- Current ratio at 6.35 flagged unfavorable, potential asset management issue
- Zero dividend yield may not appeal to income-focused investors
- Moderate ROIC at 14.2% versus WACC 8.79% leaves less economic profit margin
- Neutral P/E at 15.95 and P/B at 2.71 indicate average market valuation
- Asset turnover neutral at 0.81, signaling average operational efficiency
- Less revenue diversification, concentrated in two main product lines
Both companies exhibit strong profitability and global reach, yet differ in financial leverage and valuation metrics. KLA’s higher profitability contrasts with its elevated leverage and valuation multiples. Cirrus Logic shows financial prudence with low debt but faces challenges in revenue diversification and dividend policy. These factors influence their capital allocation and strategic priorities.
The Moat Duel: Analyzing Competitive Defensibility
A structural moat is the only reliable shield protecting long-term profits from relentless competitive erosion. Let’s dissect the core advantages of two semiconductor players:
KLA Corporation: Precision Process Control Moat
KLA’s moat stems from unparalleled process control technology, driving above-average ROIC of 27.5% versus WACC. Its earnings boast margin stability and robust 40% EBIT margins. In 2026, expanding into advanced semiconductor inspection deepens this advantage against rising competition.
Cirrus Logic, Inc.: Integrated Audio Signal Processing Moat
Cirrus Logic’s moat lies in specialized mixed-signal ICs for audio applications, a niche distinct from KLA’s wafer inspection focus. It delivers value with a positive ROIC spread of 5.4%, demonstrating profitable growth but with thinner margins. Emerging AR/VR and automotive audio markets offer expansion but also expose it to competitive disruption.
Precision Control vs. Specialized Signal Processing
KLA commands a wider and deeper moat, reflected in a stronger ROIC premium and superior margin profile. Its entrenched technology and diversified semiconductor customer base better defend market share against innovation and price pressure. Cirrus Logic remains competitive but faces a narrower moat and higher vulnerability to market shifts.
Which stock offers better returns?
The past year shows stark divergence in stock price appreciation and trading dynamics between KLA Corporation and Cirrus Logic, Inc., with KLA accelerating sharply while Cirrus Logic advanced steadily.
Trend Comparison
KLA Corporation’s stock surged 104.22% over the past 12 months, marking a bullish trend with accelerating momentum and high volatility, reaching a peak price of 1567.82 and a low of 576.53.
Cirrus Logic’s stock rose 40.89% over the same period, also bullish with acceleration, but lower volatility and a peak price of 145.69, indicating a steadier upward movement.
KLA’s stock delivered the highest market performance with a more than twofold price increase, outperforming Cirrus Logic’s more moderate 41% gain.
Target Prices
Analysts present a clear target consensus for KLA Corporation and Cirrus Logic, Inc., reflecting their growth prospects.
| Company | Target Low | Target High | Consensus |
|---|---|---|---|
| KLA Corporation | 1400 | 1900 | 1672.25 |
| Cirrus Logic, Inc. | 100 | 155 | 138.75 |
The consensus target for KLA exceeds its current price of 1427.94, indicating upside potential. Cirrus Logic’s consensus of 138.75 also suggests modest appreciation from its 130.34 price.
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How do institutions grade them?
The following tables summarize recent institutional grades for KLA Corporation and Cirrus Logic, Inc.:
KLA Corporation Grades
The table below shows KLA Corporation’s current grades from leading financial institutions.
| Grading Company | Action | New Grade | Date |
|---|---|---|---|
| Oppenheimer | Maintain | Outperform | 2026-01-30 |
| Barclays | Maintain | Overweight | 2026-01-30 |
| Cantor Fitzgerald | Maintain | Overweight | 2026-01-30 |
| Jefferies | Maintain | Buy | 2026-01-30 |
| Stifel | Maintain | Buy | 2026-01-30 |
| Wells Fargo | Maintain | Overweight | 2026-01-30 |
| Needham | Maintain | Buy | 2026-01-30 |
| RBC Capital | Maintain | Sector Perform | 2026-01-30 |
| Deutsche Bank | Maintain | Hold | 2026-01-21 |
| Needham | Maintain | Buy | 2026-01-20 |
Cirrus Logic, Inc. Grades
The table below shows Cirrus Logic, Inc.’s current grades from leading financial institutions.
| Grading Company | Action | New Grade | Date |
|---|---|---|---|
| Keybanc | Maintain | Overweight | 2025-11-05 |
| Barclays | Maintain | Equal Weight | 2025-11-05 |
| Benchmark | Maintain | Buy | 2025-11-05 |
| Stifel | Maintain | Buy | 2025-11-05 |
| Susquehanna | Maintain | Positive | 2025-10-22 |
| Stifel | Maintain | Buy | 2025-10-17 |
| Stifel | Maintain | Buy | 2025-09-12 |
| Barclays | Maintain | Equal Weight | 2025-05-07 |
| Barclays | Maintain | Equal Weight | 2025-04-22 |
| Stifel | Maintain | Buy | 2025-04-17 |
Which company has the best grades?
KLA Corporation receives consistently stronger ratings, mostly “Buy,” “Outperform,” and “Overweight.” Cirrus Logic shows more mixed grades, including multiple “Equal Weight.” Investors may view KLA as favored by analysts, impacting confidence and potential demand.
Risks specific to each company
The following categories identify critical pressure points and systemic threats facing both firms in the 2026 market environment:
1. Market & Competition
KLA Corporation
- Operates in a highly specialized semiconductor process control niche facing intense innovation pressure and cyclical demand.
Cirrus Logic, Inc.
- Competes in mixed-signal and audio semiconductor markets with rising competition from integrated device manufacturers and shifting consumer preferences.
2. Capital Structure & Debt
KLA Corporation
- Moderate leverage with debt-to-equity at 1.3, increasing financial risk despite strong interest coverage at 16.4x.
Cirrus Logic, Inc.
- Low leverage with debt-to-equity of 0.07, indicating conservative capital structure and minimal financial risk.
3. Stock Volatility
KLA Corporation
- High beta of 1.44 suggests greater sensitivity to market swings, increasing share price volatility risk.
Cirrus Logic, Inc.
- Lower beta of 1.08 indicates more moderate volatility, offering relatively stable price movements.
4. Regulatory & Legal
KLA Corporation
- Subject to global export controls and IP litigation risks common in semiconductor capital equipment sector.
Cirrus Logic, Inc.
- Faces regulatory scrutiny primarily around product compliance and international trade, but less exposure to heavy litigation.
5. Supply Chain & Operations
KLA Corporation
- Dependence on advanced manufacturing inputs exposes it to supply chain disruptions and raw material cost inflation.
Cirrus Logic, Inc.
- Fabless model reduces capital intensity but risks delays from foundry partners and component shortages.
6. ESG & Climate Transition
KLA Corporation
- Increasing pressure to reduce carbon footprint in energy-intensive manufacturing and meet stricter environmental standards.
Cirrus Logic, Inc.
- Faces challenges in sustainable sourcing and energy consumption in semiconductor design and testing processes.
7. Geopolitical Exposure
KLA Corporation
- Significant exposure to US-China tensions affecting semiconductor equipment exports and global supply chains.
Cirrus Logic, Inc.
- Moderate geopolitical risk with diversified customer base but vulnerable to trade policy shifts impacting sales.
Which company shows a better risk-adjusted profile?
KLA’s most impactful risk is its high leverage combined with market volatility, exposing it to financial stress during downturns. Cirrus Logic’s main risk lies in supply chain dependencies inherent to fabless models. Overall, Cirrus Logic presents a better risk-adjusted profile, supported by stronger financial stability and lower debt. Its recent low debt-to-equity ratio and exceptional interest coverage underscore prudent capital management, contrasting KLA’s elevated leverage and valuation concerns.
Final Verdict: Which stock to choose?
KLA Corporation’s superpower lies in its exceptional capital efficiency and robust profitability, consistently generating returns well above its cost of capital. Its aggressive growth is fueled by strong innovation and operational excellence. A point of vigilance is its stretched valuation multiples, which could pressure returns if growth slows. KLAC fits well in portfolios focused on high-growth, innovation-driven sectors.
Cirrus Logic, Inc. boasts a strategic moat rooted in its niche audio semiconductor expertise and solid recurring cash flows. Its conservative leverage and stronger liquidity profile offer a safer harbor than KLAC’s more aggressive stance. CRUS suits investors seeking growth at a reasonable price combined with financial stability and a durable competitive position.
If you prioritize aggressive growth and can tolerate valuation risk, KLA outshines with superior capital returns and innovation leadership. However, if you seek steadier growth with a margin of safety and a reasonable valuation, Cirrus offers better stability and a compelling risk-adjusted profile. Both companies demonstrate durable moats, but your choice hinges on your risk appetite and portfolio strategy.
Disclaimer: Investment carries a risk of loss of initial capital. The past performance is not a reliable indicator of future results. Be sure to understand risks before making an investment decision.
Go Further
I encourage you to read the complete analyses of KLA Corporation and Cirrus Logic, Inc. to enhance your investment decisions:
