KLA (NASDAQ:KLAC) versus CCSC Technology International (NASDAQ:CCTG) Critical Analysis

CCSC Technology International (NASDAQ:CCTG) and KLA (NASDAQ:KLAC) are both computer and technology companies, but which is the superior business? We will contrast the two businesses based on the strength of their dividends, institutional ownership, risk, earnings, profitability, analyst recommendations and valuation.

Analyst Recommendations

This is a breakdown of recent ratings and target prices for CCSC Technology International and KLA, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
CCSC Technology International	1	0	0	0	1.00
KLA	0	14	12	0	2.46

KLA has a consensus target price of $1,241.50, indicating a potential upside of 13.16%. Given KLA’s stronger consensus rating and higher possible upside, analysts clearly believe KLA is more favorable than CCSC Technology International.

Profitability

This table compares CCSC Technology International and KLA’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
CCSC Technology International	N/A	N/A	N/A
KLA	33.83%	113.10%	30.03%

Insider & Institutional Ownership

86.7% of KLA shares are owned by institutional investors. 91.5% of KLA shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Valuation & Earnings

This table compares CCSC Technology International and KLA”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
CCSC Technology International	$17.63 million	0.16	-$1.41 million	N/A	N/A
KLA	$12.52 billion	11.51	$4.06 billion	$31.85	34.45

KLA has higher revenue and earnings than CCSC Technology International.

Volatility & Risk

CCSC Technology International has a beta of -1.41, meaning that its share price is 241% less volatile than the S&P 500. Comparatively, KLA has a beta of 1.52, meaning that its share price is 52% more volatile than the S&P 500.

Summary

KLA beats CCSC Technology International on 12 of the 12 factors compared between the two stocks.

About CCSC Technology International

CCSC Technology International Holdings Limited, through its subsidiaries, manufactures and sells interconnect products in Asia, Europe, and the Americas. It offers original equipment manufacturer and original design manufacture interconnect products, including connectors, cables, and wire harnesses used for a range of applications in various industries, such as industrial, automotive, robotics, medical equipment, computer, network and telecommunication, and consumer products. The company was founded in 1993 and is headquartered in Sha Tin, Hong Kong. CCSC Technology International Holdings Limited operates as a subsidiary of CCSC Investment Limited.

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.