Which is better, KLAC or TSM?

On the Buffett-Fit framework, KLA Corporation (KLAC) currently grades higher than TSM — 80/100 (A grade) vs 67/100 (B). That said, "better" depends on which framework you trust — KLAC wins on Warren Buffett, Benjamin Graham, Philip Fisher, Peter Lynch, Joel Greenblatt, Charlie Munger, and Terry Smith; TSM wins on none. The full pillar breakdown is on this page.

Should I buy KLAC or TSM?

This page is an educational comparison, not investment advice. Both KLAC and TSM are graded against the same Buffett 5-pillar framework (moat, earnings durability, management quality, financial health, valuation) plus six other documented investor frameworks. Read the side-by-side breakdown to see which one matches the criteria you care about most — and always do your own research before making any investment decision.

Is KLAC better than TSM for value investing?

On the Buffett-style value-investing framework, KLAC currently grades higher — 80/100 vs 67/100, a 13-point gap. The gap is driven by which pillars each stock passes; the table on this page shows moat, durability, management, financial health, and valuation side-by-side.

What's the difference between KLAC and TSM on Warren Buffett's framework?

Both stocks are evaluated on the same five pillars: economic moat (durable competitive advantage), earnings durability (consistent profitability), management quality (capital allocation), financial health (conservative balance sheet), and valuation (margin of safety). KLAC currently scores 80/100 (A grade); TSM scores 67/100 (B grade). The "Where each wins" section on this page breaks down which pillar each stock dominates.

Which has the stronger moat, KLAC or TSM?

Moat strength is one of the five pillars in the Buffett-Fit score on this page. KLAC and TSM are each scored on ROIC sustainability, gross-margin durability, and qualitative signals like brand strength, switching costs, network effects, and regulatory barriers. The pillar breakdown on this page shows the moat sub-score side-by-side so you can see which one has the more durable competitive advantage.

Which is more undervalued, KLAC or TSM?

Valuation is one of the five Buffett-Fit pillars on this page. Both stocks are scored on owner-earnings yield, price-to-intrinsic-value vs the underlying compounding rate, and the margin of safety relative to a conservative DCF. The valuation sub-score in the table below tells you which one currently trades at a more attractive price relative to its underlying business quality.

Are KLAC and TSM both Technology stocks?

Yes — both KLA Corporation (KLAC) and Taiwan Semiconductor Manufacturing Company Limited (TSM) operate in the Technology sector. That makes this a direct sector-peer comparison, which is the apples-to-apples way to use the Buffett-Fit framework: the score weighs each stock against its sector's specific quality and valuation benchmarks (sector-relative bonus), so the cross-stock comparison isn't distorted by inter-sector base-rate differences.

Is this KLAC vs TSM comparison investment advice?

No. This page is an educational pattern-match against documented public frameworks (Buffett, Graham, Fisher, Lynch, Greenblatt, Munger, Smith), not personalised investment advice. The scores reflect how closely each stock matches each framework's documented criteria — they are not buy/hold/sell recommendations. Always do your own research and consult a licensed financial adviser for personalised advice.

Stock comparison

KLA

KLAC$235.69BTechnology Market cap, Sector

Taiwan Semiconductor Manufacturing Company Limited

TSM$2.1TTechnology Market cap, Sector

Overall winner

KLA

KLAC 70 TSM

Wins on the combined sum of fit scores across all four strategies. Per-strategy breakdown below.

Scored across Buffett, Graham, Lynch and Greenblatt - plus a side-by-side metric table covering valuation, quality, growth and balance sheet.

Fit scores by strategy

KLAC7wins

0winsTSM

Warren Buffett

80B

C67

Benjamin Graham

94A

B80

Philip Fisher

90A

B83

Peter Lynch

77B

B70

Joel Greenblatt

78B

C69

Charlie Munger

93A

B77

Terry Smith

94A

B73

Side-by-side metrics

Metric	KLAC	TSM
Market cap	$235.69B	$2.1T Winner
P/E (TTM)	50.6x	30.5x Winner
EV/EBIT	45.8x	29.0x Winner
ROIC (TTM)	Winner: 36.29%	25.8%
Gross margin	61.75%	61.87% Winner
Net margin	35.66%	47.0% Winner
Revenue CAGR 5y	15.13%	24.78% Winner
EPS CAGR 5y	22.65%	30.83% Winner
Debt / Equity	1.1x	0.2x Winner
Dividend yield	0.42%	0.91% Winner

Where each one wins

The metrics with the biggest gap between the two - sorted so the most decisive edges read first.

KLAC leads on

ROIC (TTM)36.29%vs 25.8%+29%

TSM leads on

Market cap$2.1Tvs $235.69B+89%
Debt / Equity0.2xvs 1.1x+84%
Dividend yield0.91%vs 0.42%+53%
P/E (TTM)30.5xvs 50.6x+40%

More like KLAC

KLAC vs FICO KLAC vs CAMS.BO KLAC vs FTNT KLAC vs 4071.T

More like TSM

TSM vs FICO TSM vs CAMS.BO TSM vs FTNT TSM vs 4071.T

Read the full Buffett-Brain analysis for KLAC Read the full Buffett-Brain analysis for TSM

Related on invest-like

Strongest Moat Highest ROIC Warren Buffett strategy Economic Moat

Key terms in this analysis

ROIC Free Cash Flow (FCF)Economic Moat P/E Ratio Margin of Safety Quality Score

Educational tool. Fit scores are deterministic projections from public financials onto each investor's published criteria - not personal recommendations or advice.