TER
Teradyne, Inc.
Semiconductors
Market Cap$59.95B
5Y Perf.+471.3%
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Stock Comparison
TER vs AMAT
Revenue, margins, valuation, and 5-year total return — side by side.
AMAT
Applied Materials, Inc.
Semiconductors
Market Cap$339.90B
5Y Perf.+662.9%
TER vs AMAT — Key Financials
Market cap, revenue, margins, and valuation side-by-side.
| Company Snapshot | TER | AMAT |
|---|---|---|
| Industry | Semiconductors | Semiconductors |
| Market Cap | $59.95B | $339.90B |
| Revenue (TTM) | $3.79B | $28.37B |
| Net Income (TTM) | $854M | $7.00B |
| Gross Margin | 58.8% | 48.7% |
| Operating Margin | 26.9% | 29.2% |
| Forward P/E | 53.1x | 38.7x |
| Total Debt | $347M | $6.55B |
| Cash & Equiv. | $294M | $7.24B |
TER vs AMAT — Long-Term Stock Performance
Price return indexed to 100 at period start. Dividends excluded.
TER
AMAT
| Stock | May 20 | May 26 | Return |
|---|---|---|---|
| Teradyne, Inc. (TER) | 100 | 571.3 | +471.3% |
| Applied Materials, … (AMAT) | 100 | 762.9 | +662.9% |
Price return only. Dividends and distributions are not included.
Quick Verdict: TER vs AMAT
Each card shows where this stock fits in a portfolio — not just who wins on paper.
Bottom line: AMAT leads in 4 of 7 categories, making it the strongest pick for valuation and capital efficiency and profitability and margin quality. Teradyne, Inc. is the stronger pick specifically for growth and revenue expansion and recent price momentum and sentiment. As sector peers, any of these can serve as alternatives in the same allocation.
TER
Teradyne, Inc.
The Growth Play
TER is the clearest fit if your priority is growth exposure.
- Rev growth 13.1%, EPS growth 4.8%, 3Y rev CAGR 0.4%
- 13.1% revenue growth vs AMAT's 4.4%
- +417.6% vs AMAT's +181.3%
Best for: growth exposure
AMAT
Applied Materials, Inc.
The Income Pick
AMAT carries the broadest edge in this set and is the clearest fit for income & stability and long-term compounding.
- Dividend streak 8 yrs, beta 2.14, yield 0.4%
- 21.1% 10Y total return vs TER's 19.7%
- Lower volatility, beta 2.14, Low D/E 32.1%, current ratio 2.61x
Best for: income & stability and long-term compounding
See the full category breakdown
| Category | Winner | Why |
|---|---|---|
| Growth | TER | 13.1% revenue growth vs AMAT's 4.4% |
| Value | AMAT | Lower P/E (38.7x vs 53.1x) |
| Quality / Margins | AMAT | 24.7% margin vs TER's 22.6% |
| Stability / Safety | AMAT | Beta 2.14 vs TER's 2.60 |
| Dividends | AMAT | 0.4% yield, 8-year raise streak, vs TER's 0.1% |
| Momentum (1Y) | TER | +417.6% vs AMAT's +181.3% |
| Efficiency (ROA) | TER | 20.9% ROA vs AMAT's 19.3%, ROIC 19.8% vs 33.3% |
TER vs AMAT — Revenue Breakdown by Segment
How each company's revenue is distributed across its business units
FY 2025
FY 2024
TER vs AMAT — Financial Metrics
Side-by-side numbers across 2 stocks — who leads on profitability, valuation, growth, and risk.
BEST OVERALLAMATLAGGINGTER
TERTeradyne, Inc.
1leads
AMATApplied Materials, In…
4leads
6 Total Categories
CATEGORYLEADERvs TERMETRICS WON
Income & Cash FlowRevenue, margins, and cash flow strength
Tied
—
Valuation MetricsMultiples, price ratios, and targets
AMAT6/6
Profitability & EfficiencyROE, ROIC, leverage, and quality scores
AMAT5/9
Total Returns1Y, 3Y, 5Y total returns with dividends
TER4/6
Risk & VolatilityBeta, volatility, and downside exposure
AMAT2/2
Analyst OutlookRatings, price targets, and dividends
AMAT2/2
Income & Cash Flow (Last 12 Months)
Evenly matched — TER and AMAT each lead in 3 of 6 comparable metrics.
Income & Cash Flow (Last 12 Months)
AMAT is the larger business by revenue, generating $28.4B annually — 7.5x TER's $3.8B. Profitability is closely matched — net margins range from 24.7% (AMAT) to 22.6% (TER). On growth, TER holds the edge at +87.0% YoY revenue growth, suggesting stronger near-term business momentum.
| Metric | TERTeradyne, Inc. | AMATApplied Materials… |
|---|---|---|
| RevenueTrailing 12 months | $3.8B | $28.4B |
| EBITDAEarnings before interest/tax | $1.1B | $8.4B |
| Net IncomeAfter-tax profit | $854M | $7.0B |
| Free Cash FlowCash after capex | $553M | $5.7B |
| Gross MarginGross profit ÷ Revenue | +58.8% | +48.7% |
| Operating MarginEBIT ÷ Revenue | +26.9% | +29.2% |
| Net MarginNet income ÷ Revenue | +22.6% | +24.7% |
| FCF MarginFCF ÷ Revenue | +14.6% | +20.1% |
| Rev. Growth (YoY)Latest quarter vs prior year | +87.0% | -3.5% |
| EPS Growth (YoY)Latest quarter vs prior year | +3.1% | +13.9% |
Evenly matched — TER and AMAT each lead in 3 of 6 comparable metrics.
Valuation Metrics
AMAT leads this category, winning 6 of 6 comparable metrics.
Valuation Metrics
At 49.5x trailing earnings, AMAT trades at a 55% valuation discount to TER's 110.0x P/E. On an enterprise value basis, AMAT's 40.4x EV/EBITDA is more attractive than TER's 73.2x.
| Metric | TERTeradyne, Inc. | AMATApplied Materials… |
|---|---|---|
| Market CapShares × price | $59.9B | $339.9B |
| Enterprise ValueMkt cap + debt − cash | $60.0B | $339.2B |
| Trailing P/EPrice ÷ TTM EPS | 110.03x | 49.49x |
| Forward P/EPrice ÷ next-FY EPS est. | 53.11x | 38.70x |
| PEG RatioP/E ÷ EPS growth rate | — | 2.88x |
| EV / EBITDAEnterprise value multiple | 73.16x | 40.39x |
| Price / SalesMarket cap ÷ Revenue | 18.79x | 11.98x |
| Price / BookPrice ÷ Book value/share | 21.59x | 16.96x |
| Price / FCFMarket cap ÷ FCF | 133.10x | 59.65x |
AMAT leads this category, winning 6 of 6 comparable metrics.
Profitability & Efficiency
AMAT leads this category, winning 5 of 9 comparable metrics.
Profitability & Efficiency
AMAT delivers a 34.3% return on equity — every $100 of shareholder capital generates $34 in annual profit, vs $30 for TER. TER carries lower financial leverage with a 0.12x debt-to-equity ratio, signaling a more conservative balance sheet compared to AMAT's 0.32x. On the Piotroski fundamental quality scale (0–9), AMAT scores 7/9 vs TER's 6/9, reflecting strong financial health.
| Metric | TERTeradyne, Inc. | AMATApplied Materials… |
|---|---|---|
| ROE (TTM)Return on equity | +29.7% | +34.3% |
| ROA (TTM)Return on assets | +20.9% | +19.3% |
| ROICReturn on invested capital | +19.8% | +33.3% |
| ROCEReturn on capital employed | +22.5% | +30.6% |
| Piotroski ScoreFundamental quality 0–9 | 6 | 7 |
| Debt / EquityFinancial leverage | 0.12x | 0.32x |
| Net DebtTotal debt minus cash | $53M | -$686M |
| Cash & Equiv.Liquid assets | $294M | $7.2B |
| Total DebtShort + long-term debt | $347M | $6.6B |
| Interest CoverageEBIT ÷ Interest expense | 69.13x | 35.46x |
AMAT leads this category, winning 5 of 9 comparable metrics.
Total Returns (Dividends Reinvested)
TER leads this category, winning 4 of 6 comparable metrics.
Total Returns (Dividends Reinvested)
A $10,000 investment in AMAT five years ago would be worth $33,048 today (with dividends reinvested), compared to $30,584 for TER. Over the past 12 months, TER leads with a +417.6% total return vs AMAT's +181.3%. The 3-year compound annual growth rate (CAGR) favors TER at 61.4% vs AMAT's 55.3% — a key indicator of consistent wealth creation.
| Metric | TERTeradyne, Inc. | AMATApplied Materials… |
|---|---|---|
| YTD ReturnYear-to-date | +84.5% | +59.6% |
| 1-Year ReturnPast 12 months | +417.6% | +181.3% |
| 3-Year ReturnCumulative with dividends | +320.4% | +274.4% |
| 5-Year ReturnCumulative with dividends | +205.8% | +230.5% |
| 10-Year ReturnCumulative with dividends | +1966.5% | +2107.7% |
| CAGR (3Y)Annualised 3-year return | +61.4% | +55.3% |
TER leads this category, winning 4 of 6 comparable metrics.
Risk & Volatility
AMAT leads this category, winning 2 of 2 comparable metrics.
Risk & Volatility
AMAT is the less volatile stock with a 2.14 beta — it tends to amplify market swings less than TER's 2.60 beta. A beta below 1.0 means the stock typically moves less than the S&P 500. AMAT currently trades 99.0% from its 52-week high vs TER's 90.7% drawdown — a narrower gap to the peak suggests stronger recent price momentum.
| Metric | TERTeradyne, Inc. | AMATApplied Materials… |
|---|---|---|
| Beta (5Y)Sensitivity to S&P 500 | 2.60x | 2.14x |
| 52-Week HighHighest price in past year | $422.11 | $432.81 |
| 52-Week LowLowest price in past year | $73.11 | $151.51 |
| % of 52W HighCurrent price vs 52-week peak | +90.7% | +99.0% |
| RSI (14)Momentum oscillator 0–100 | 51.5 | 61.0 |
| Avg Volume (50D)Average daily shares traded | 3.4M | 6.1M |
AMAT leads this category, winning 2 of 2 comparable metrics.
Analyst Outlook
AMAT leads this category, winning 2 of 2 comparable metrics.
Analyst Outlook
Wall Street rates TER as "Buy" and AMAT as "Buy". Consensus price targets imply -0.5% upside for AMAT (target: $426) vs -8.3% for TER (target: $351). For income investors, AMAT offers the higher dividend yield at 0.40% vs TER's 0.13%.
| Metric | TERTeradyne, Inc. | AMATApplied Materials… |
|---|---|---|
| Analyst RatingConsensus buy/hold/sell | Buy | Buy |
| Price TargetConsensus 12-month target | $351.09 | $426.39 |
| # AnalystsCovering analysts | 31 | 53 |
| Dividend YieldAnnual dividend ÷ price | +0.1% | +0.4% |
| Dividend StreakConsecutive years of raises | 4 | 8 |
| Dividend / ShareAnnual DPS | $0.48 | $1.71 |
| Buyback YieldShare repurchases ÷ mkt cap | +1.2% | +1.4% |
AMAT leads this category, winning 2 of 2 comparable metrics.
Key Takeaway
AMAT leads in 4 of 6 categories (Valuation Metrics, Profitability & Efficiency). TER leads in 1 (Total Returns). 1 tied.
Best OverallApplied Materials, Inc. (AMAT)Leads 4 of 6 categories
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TER vs AMAT: Frequently Asked Questions
10 questions · data-driven answers · updated daily
01Is TER or AMAT a better buy right now?
For growth investors, Teradyne, Inc.
(TER) is the stronger pick with 13. 1% revenue growth year-over-year, versus 4. 4% for Applied Materials, Inc. (AMAT). Applied Materials, Inc. (AMAT) offers the better valuation at 49. 5x trailing P/E (38. 7x forward), making it the more compelling value choice. Analysts rate Teradyne, Inc. (TER) a "Buy" — based on 31 analyst ratings — the highest consensus in this comparison. The "better buy" depends entirely on your goals: growth investors should weight revenue trajectory, value investors should weight P/E and PEG, and income investors should weight dividend yield and streak.
02Which has the better valuation — TER or AMAT?
On trailing P/E, Applied Materials, Inc.
(AMAT) is the cheapest at 49. 5x versus Teradyne, Inc. at 110. 0x. On forward P/E, Applied Materials, Inc. is actually cheaper at 38. 7x.
03Which is the better long-term investment — TER or AMAT?
Over the past 5 years, Applied Materials, Inc.
(AMAT) delivered a total return of +230. 5%, compared to +205. 8% for Teradyne, Inc. (TER). Over 10 years, the gap is even starker: AMAT returned +21. 1% versus TER's +1967%. Past returns do not guarantee future results, and the stock with the higher historical return may already have its best growth priced in.
04Which is safer — TER or AMAT?
By beta (market sensitivity over 5 years), Applied Materials, Inc.
(AMAT) is the lower-risk stock at 2. 14β versus Teradyne, Inc. 's 2. 60β — meaning TER is approximately 21% more volatile than AMAT relative to the S&P 500. On balance sheet safety, Teradyne, Inc. (TER) carries a lower debt/equity ratio of 12% versus 32% for Applied Materials, Inc. — giving it more financial flexibility in a downturn.
05Which is growing faster — TER or AMAT?
By revenue growth (latest reported year), Teradyne, Inc.
(TER) is pulling ahead at 13. 1% versus 4. 4% for Applied Materials, Inc. (AMAT). On earnings-per-share growth, the picture is similar: Teradyne, Inc. grew EPS 4. 8% year-over-year, compared to 0. 6% for Applied Materials, Inc.. Over a 3-year CAGR, AMAT leads at 3. 2% annualised revenue growth. Higher growth typically commands a higher valuation multiple — check whether the premium P/E or P/S is justified by the growth rate using the PEG ratio.
06Which has better profit margins — TER or AMAT?
Applied Materials, Inc.
(AMAT) is the more profitable company, earning 24. 7% net margin versus 17. 4% for Teradyne, Inc. — meaning it keeps 24. 7% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: AMAT leads at 29. 2% versus 21. 7% for TER. At the gross margin level — before operating expenses — TER leads at 58. 6%, reflecting greater pricing power or product mix advantage. Stronger margins indicate durable pricing power, lower cost of revenue, or higher mix of software/services. They are one of the clearest signs of business quality.
07Is TER or AMAT more undervalued right now?
On forward earnings alone, Applied Materials, Inc.
(AMAT) trades at 38. 7x forward P/E versus 53. 1x for Teradyne, Inc. — 14. 4x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for AMAT: -0. 5% to $426. 39.
08Which pays a better dividend — TER or AMAT?
All stocks in this comparison pay dividends.
Applied Materials, Inc. (AMAT) offers the highest yield at 0. 4%, versus 0. 1% for Teradyne, Inc. (TER).
09Is TER or AMAT better for a retirement portfolio?
For long-horizon retirement investors, Teradyne, Inc.
(TER) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (+1967% 10Y return). Applied Materials, Inc. (AMAT) carries a higher beta of 2. 14 — meaning larger drawdowns in market downturns, which matters significantly when you cannot wait years for a recovery. Both have compounded well over 10 years (TER: +1967%, AMAT: +21. 1%), confirming both are viable long-term holds — but the lower-volatility option typically results in less emotional selling during corrections. Retirement portfolios generally favour predictability over maximum returns. Consult a financial advisor before making allocation decisions.
10What are the main differences between TER and AMAT?
Both stocks operate in the Technology sector, making this a peer-level intra-sector comparison — the same macro tailwinds and headwinds will affect both.
These fundamental differences mean investors should not choose between them on a single metric — the "better stock" depends entirely on which of these characteristics aligns with your investment strategy.
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Revenue Growth>
%
(TER: 87.0% · AMAT: -3.5%)Net Margin>
%
(TER: 22.6% · AMAT: 24.7%)P/E Ratio<
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