Contrasting Odysight.Ai (NASDAQ:ODYS) & KLA (NASDAQ:KLAC)

Odysight.Ai (NASDAQ:ODYS) and KLA (NASDAQ:KLAC) are both business services companies, but which is the better investment? We will contrast the two companies based on the strength of their institutional ownership, earnings, risk, dividends, valuation, analyst recommendations and profitability.

Institutional & Insider Ownership

19.7% of Odysight.Ai shares are owned by institutional investors. Comparatively, 86.7% of KLA shares are owned by institutional investors. 0.1% of KLA shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Volatility & Risk

Odysight.Ai has a beta of 0.56, indicating that its stock price is 44% less volatile than the S&P 500. Comparatively, KLA has a beta of 1.37, indicating that its stock price is 37% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent recommendations for Odysight.Ai and KLA, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Odysight.Ai	0	0	1	0	3.00
KLA	0	6	12	0	2.67

Odysight.Ai currently has a consensus price target of $10.00, suggesting a potential upside of 86.92%. KLA has a consensus price target of $814.11, suggesting a potential upside of 28.32%. Given Odysight.Ai’s stronger consensus rating and higher possible upside, equities analysts clearly believe Odysight.Ai is more favorable than KLA.

Valuation & Earnings

This table compares Odysight.Ai 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
Odysight.Ai	$3.96 million	22.01	-$9.44 million	($1.03)	-5.19
KLA	$10.85 billion	7.77	$2.76 billion	$23.78	26.68

KLA has higher revenue and earnings than Odysight.Ai. Odysight.Ai is trading at a lower price-to-earnings ratio than KLA, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Odysight.Ai and KLA’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Odysight.Ai	-207.38%	-56.78%	-43.36%
KLA	29.58%	108.60%	24.20%

Summary

KLA beats Odysight.Ai on 11 of the 14 factors compared between the two stocks.

About Odysight.Ai

Odysight.ai Inc., together with its subsidiaries, develops, produces, and markets visual sensing and AI-based video analytics solutions in Israel, the United States, the United Kingdom, and internationally. The company, through its visualization technology offers solutions across predictive maintenance and condition-based monitoring markets in various sectors, such as medical, defense, energy, automotive, transportation, aviation, maritime, and industrial non-destructing-testing. Odysight.ai Inc. is based in Omer, Israel.

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.