Danaher Corporation vs KLA CORPORATION, two Scientific Instruments stocks. A side-by-side on valuation, growth, margins, returns, and what each price is betting.
Danaher earns 7% on its equity and KLA earns 80%, and the reasons are structural, not a matter of one team trying harder. KLA sells a narrow line of chip-inspection tools at a 36% net margin, while Danaher spreads across diagnostics and life-science instruments at a 15% net margin off a much larger, acquisition-built asset base that dilutes the return. KLA's 80% also leans on a 1.01 debt-to-equity that shrinks the equity it divides by, where Danaher carries a lighter 0.37, so part of the gap is leverage rather than economics. The market inverts the returns when it sets the price: Danaher trades near 35 times earnings and KLA near 7, with KLA throwing off a 12% free-cash yield to Danaher's 4%. The premium goes to the lower-returning business because its earnings are read as the steadier of the two.
Comparison updated 2026-06-15.
| Metric | DHR | KLAC |
|---|---|---|
| Price | $199.02 | $231.50 |
| Market cap | $141.5B | $30.5B |
| Sector | Scientific Instruments | Scientific Instruments |
| Stage | Mature | Growth |
| P/E | 38.4 | 6.6 |
| P/B | 2.67 | 5.23 |
| P/S | 5.71 | 2.33 |
| EV/EBITDA | 29.1 | 356.6 |
| Revenue growth | +4.0% | +13.8% |
| Gross margin | 60.3% | — |
| Operating margin | 22.6% | — |
| Net margin | 14.9% | 35.7% |
| Return on equity | 7.0% | 80.1% |
| Return on assets | 4.4% | 27.7% |
| Return on invested capital | 5.5% | — |
| FCF yield | 3.7% | 13.2% |
| Dividend yield | — | 2.9% |
| Debt / equity | 0.37 | 1.01 |
| Current ratio | 1.87 | 3.03 |
| Altman Z (solvency) | 7.24 | 3.24 |
| Piotroski F (quality) | 6 / 9 | 7 / 9 |
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The stronger value is highlighted per metric where one is strictly better on that single number; it is not an overall verdict on either company. For informational and research purposes only. Not investment advice. Not a recommendation to buy, sell, or hold any security. boothcheck is not a registered investment adviser. Past performance does not guarantee future results.