Comprehensive Stock Comparison
Compare Teradyne, Inc. (TER) vs Broadcom Inc. (AVGO) Stock
Analyze side-by-side fundamentals, valuation, growth, and profitability to decide which stock is the better buy.
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Quick Verdict
| Category | Winner | Why |
|---|---|---|
| Growth | AVGO | 23.9% revenue growth vs TER's 13.1% |
| Value | AVGO | Lower P/E (31.1x vs 50.3x) |
| Quality / Margins | AVGO | 36.2% net margin vs TER's 17.4% |
| Stability / Safety | AVGO | Beta 1.75 vs TER's 1.90 |
| Dividends | AVGO | 0.7% yield, 15-year raise streak, vs TER's 0.2% |
| Momentum (1Y) | TER | +191.8% vs AVGO's +61.4% |
| Efficiency (ROA) | AVGO | 13.5% ROA vs TER's 13.3%, ROIC 14.9% vs 19.8% |
Who Each Stock Is For
Income & stability
Growth exposure
Long-term compounding (10Y)
Sleep-well-at-night portfolio
Defensive / Recession hedge
Business Model
What each company does and how it makes money
Teradyne is a leading manufacturer of automated test equipment used to verify semiconductor chips and electronic systems before they reach customers. It generates revenue primarily from semiconductor test systems (~70% of sales) and industrial automation robots (~20%), with the remainder from system test and wireless test equipment. The company's moat comes from its deep expertise in complex test methodologies and long-standing relationships with major semiconductor manufacturers who rely on its equipment for quality assurance.
Broadcom is a semiconductor and infrastructure software company that designs and supplies critical components for data centers, networking, and connectivity. It generates revenue primarily from semiconductor sales (~70%) and infrastructure software licensing (~30%), with key segments including wired infrastructure, wireless communications, and enterprise storage. The company's moat lies in its deep engineering expertise, extensive patent portfolio, and entrenched positions in mission-critical infrastructure where customers face high switching costs.
Revenue Breakdown by Segment
How each company's revenue is distributed across its business units
Financial Metrics Comparison
Side-by-side fundamentals across 2 stocks. BestLagging
Financial Scorecard
AVGO leads in 4 of 6 categories (Financial Metrics, Valuation Metrics). TER leads in 1 (Profitability & Efficiency). 1 tied.
Financial Metrics (TTM)
AVGO is the larger business by revenue, generating $63.9B annually — 20.0x TER's $3.2B. AVGO is the more profitable business, keeping 36.2% of every revenue dollar as net income compared to TER's 17.4%. On growth, TER holds the edge at +43.9% YoY revenue growth, suggesting stronger near-term business momentum.
| Metric | TERTeradyne, Inc. | AVGOBroadcom Inc. |
|---|---|---|
| RevenueTrailing 12 months | $3.2B | $63.9B |
| EBITDAEarnings before interest/tax | $794M | $34.2B |
| Net IncomeAfter-tax profit | $554M | $23.1B |
| Free Cash FlowCash after capex | $450M | $26.9B |
| Gross MarginGross profit ÷ Revenue | +58.3% | +67.8% |
| Operating MarginEBIT ÷ Revenue | +20.9% | +39.9% |
| Net MarginNet income ÷ Revenue | +17.4% | +36.2% |
| FCF MarginFCF ÷ Revenue | +14.1% | +42.1% |
| Rev. Growth (YoY)Latest quarter vs prior year | +43.9% | +22.0% |
| EPS Growth (YoY)Latest quarter vs prior year | +81.9% | +3.1% |
Valuation Metrics
At 67.0x trailing earnings, AVGO trades at a 27% valuation discount to TER's 92.0x P/E. On an enterprise value basis, AVGO's 44.1x EV/EBITDA is more attractive than TER's 61.2x.
| Metric | TERTeradyne, Inc. | AVGOBroadcom Inc. |
|---|---|---|
| Market CapShares × price | $50.1B | $1.52T |
| Enterprise ValueMkt cap + debt − cash | $50.2B | $1.56T |
| Trailing P/EPrice ÷ TTM EPS | 91.96x | 66.99x |
| Forward P/EPrice ÷ next-FY EPS est. | 50.31x | 31.10x |
| PEG RatioP/E ÷ EPS growth rate | — | 4.80x |
| EV / EBITDAEnterprise value multiple | 61.18x | 44.06x |
| Price / SalesMarket cap ÷ Revenue | 15.71x | 23.71x |
| Price / BookPrice ÷ Book value/share | 18.05x | 19.08x |
| Price / FCFMarket cap ÷ FCF | 111.28x | 56.29x |
Profitability & Efficiency
AVGO delivers a 28.4% return on equity — every $100 of shareholder capital generates $28 in annual profit, vs $20 for TER. TER carries lower financial leverage with a 0.12x debt-to-equity ratio, signaling a more conservative balance sheet compared to AVGO's 0.80x. On the Piotroski fundamental quality scale (0–9), TER scores 6/9 vs AVGO's 4/9, reflecting solid financial health.
| Metric | TERTeradyne, Inc. | AVGOBroadcom Inc. |
|---|---|---|
| ROE (TTM)Return on equity | +19.8% | +28.4% |
| ROA (TTM)Return on assets | +13.3% | +13.5% |
| ROICReturn on invested capital | +19.8% | +14.9% |
| ROCEReturn on capital employed | +22.5% | +16.9% |
| Piotroski ScoreFundamental quality 0–9 | 6 | 4 |
| Debt / EquityFinancial leverage | 0.12x | 0.80x |
| Net DebtTotal debt minus cash | $53M | $49.0B |
| Cash & Equiv.Liquid assets | $294M | $16.2B |
| Total DebtShort + long-term debt | $347M | $65.1B |
| Interest CoverageEBIT ÷ Interest expense | 81.33x | 8.09x |
Total Returns (with DRIP)
A $10,000 investment in AVGO five years ago would be worth $67,244 today (with dividends reinvested), compared to $24,052 for TER. Over the past 12 months, TER leads with a +191.8% total return vs AVGO's +61.4%. The 3-year compound annual growth rate (CAGR) favors AVGO at 76.4% vs TER's 47.0% — a key indicator of consistent wealth creation.
| Metric | TERTeradyne, Inc. | AVGOBroadcom Inc. |
|---|---|---|
| YTD ReturnYear-to-date | +54.2% | -8.1% |
| 1-Year ReturnPast 12 months | +191.8% | +61.4% |
| 3-Year ReturnCumulative with dividends | +217.8% | +448.6% |
| 5-Year ReturnCumulative with dividends | +140.5% | +572.4% |
| 10-Year ReturnCumulative with dividends | +1598.0% | +2389.2% |
| CAGR (3Y)Annualised 3-year return | +47.0% | +76.4% |
Risk & Volatility
AVGO is the less volatile stock with a 1.75 beta — it tends to amplify market swings less than TER's 1.90 beta. A beta below 1.0 means the stock typically moves less than the S&P 500. TER currently trades 92.8% from its 52-week high vs AVGO's 77.1% drawdown — a narrower gap to the peak suggests stronger recent price momentum.
| Metric | TERTeradyne, Inc. | AVGOBroadcom Inc. |
|---|---|---|
| Beta (5Y)Sensitivity to S&P 500 | 1.90x | 1.75x |
| 52-Week HighHighest price in past year | $344.92 | $414.61 |
| 52-Week LowLowest price in past year | $65.77 | $138.10 |
| % of 52W HighCurrent price vs 52-week peak | +92.8% | +77.1% |
| RSI (14)Momentum oscillator 0–100 | 68.4 | 44.2 |
| Avg Volume (50D)Average daily shares traded | 2.7M | 21.0M |
Analyst Outlook
Wall Street rates TER as "Buy" and AVGO as "Buy". Consensus price targets imply 38.9% upside for AVGO (target: $444) vs -13.3% for TER (target: $278). For income investors, AVGO offers the higher dividend yield at 0.72% vs TER's 0.15%.
| Metric | TERTeradyne, Inc. | AVGOBroadcom Inc. |
|---|---|---|
| Analyst RatingConsensus buy/hold/sell | Buy | Buy |
| Price TargetConsensus 12-month target | $277.58 | $443.72 |
| # AnalystsCovering analysts | 31 | 57 |
| Dividend YieldAnnual dividend ÷ price | +0.2% | +0.7% |
| Dividend StreakConsecutive years of raises | 4 | 15 |
| Dividend / ShareAnnual DPS | $0.48 | $2.30 |
| Buyback YieldShare repurchases ÷ mkt cap | +1.4% | +0.4% |
Historical Charts
Charts are rendered on first load. Hover for details.
Chart 1Total Return — 5 Years (Rebased to 100)
| Stock | Mar 20 | Feb 26 | Change |
|---|---|---|---|
| Teradyne, Inc. (TER) | 100 | 426.77 | +326.8% |
| Broadcom Inc. (AVGO) | 100 | 1,207.11 | +1107.1% |
Broadcom Inc. (AVGO) returned +572% over 5 years vs Teradyne, Inc. (TER)'s +141%. A $10,000 investment in AVGO 5 years ago would be worth $67,244 today (including dividends reinvested).
Chart 2Revenue Growth — 10 Years
| Stock | 2016 | 2025 | Change |
|---|---|---|---|
| Teradyne, Inc. (TER) | $1.8B | $3.2B | +81.9% |
| Broadcom Inc. (AVGO) | $13.2B | $63.9B | +382.5% |
Teradyne, Inc.'s revenue grew from $1.8B (2016) to $3.2B (2025) — a 6.9% CAGR. Broadcom Inc.'s revenue grew from $13.2B (2016) to $63.9B (2025) — a 19.1% CAGR.
Chart 3Net Margin Trend — 10 Years
| Stock | 2016 | 2025 | Change |
|---|---|---|---|
| Teradyne, Inc. (TER) | -2.5% | 17.4% | +801.3% |
| Broadcom Inc. (AVGO) | -13.1% | 36.2% | +375.6% |
Teradyne, Inc.'s net margin went from -2% (2016) to 17% (2025). Broadcom Inc.'s net margin went from -13% (2016) to 36% (2025).
Chart 4P/E Ratio History — 9 Years
| Stock | 2017 | 2025 | Change |
|---|---|---|---|
| Teradyne, Inc. (TER) | 32.7 | 55.6 | +70.0% |
| Broadcom Inc. (AVGO) | 61.2 | 72.6 | +18.6% |
Teradyne, Inc. has traded in a 13x–56x P/E range over 9 years; current trailing P/E is ~92x. Broadcom Inc. has traded in a 9x–189x P/E range over 9 years; current trailing P/E is ~67x.
Chart 5EPS Growth — 10 Years
| Stock | 2016 | 2025 | Change |
|---|---|---|---|
| Teradyne, Inc. (TER) | -0.21 | 3.48 | +1757.1% |
| Broadcom Inc. (AVGO) | -0.44 | 4.77 | +1184.1% |
Teradyne, Inc.'s EPS grew from $-0.21 (2016) to $3.48 (2025). Broadcom Inc.'s EPS grew from $-0.44 (2016) to $4.77 (2025).
Chart 6Free Cash Flow — 5 Years
Teradyne, Inc. generated $450M FCF in 2025 (-53% vs 2021). Broadcom Inc. generated $27B FCF in 2025 (+102% vs 2021).
TER vs AVGO: Frequently Asked Questions
9 questions · data-driven answers · updated daily
01Is TER or AVGO a better buy right now?
Broadcom Inc. (AVGO) offers the better valuation at 67.0x trailing P/E (31.1x 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 AVGO?
On trailing P/E, Broadcom Inc. (AVGO) is the cheapest at 67.0x versus Teradyne, Inc. at 92.0x. On forward P/E, Broadcom Inc. is actually cheaper at 31.1x.
03Which is the better long-term investment — TER or AVGO?
Over the past 5 years, Broadcom Inc. (AVGO) delivered a total return of +572.4%, compared to +140.5% for Teradyne, Inc. (TER). A $10,000 investment in AVGO five years ago would be worth approximately $67K today (assuming dividends reinvested). Over 10 years, the gap is even starker: AVGO returned +23.9% versus TER's +1598%. 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 AVGO?
By beta (market sensitivity over 5 years), Broadcom Inc. (AVGO) is the lower-risk stock at 1.75β versus Teradyne, Inc.'s 1.90β — meaning TER is approximately 8% more volatile than AVGO relative to the S&P 500. On balance sheet safety, Teradyne, Inc. (TER) carries a lower debt/equity ratio of 12% versus 80% for Broadcom Inc. — giving it more financial flexibility in a downturn.
05Which has better profit margins — TER or AVGO?
Broadcom Inc. (AVGO) is the more profitable company, earning 36.2% net margin versus 17.4% for Teradyne, Inc. — meaning it keeps 36.2% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: AVGO leads at 39.9% versus 21.7% for TER. At the gross margin level — before operating expenses — AVGO leads at 67.8%, 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.
06Is TER or AVGO more undervalued right now?
On forward earnings alone, Broadcom Inc. (AVGO) trades at 31.1x forward P/E versus 50.3x for Teradyne, Inc. — 19.2x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for AVGO: 38.9% to $443.72.
07Which pays a better dividend — TER or AVGO?
All stocks in this comparison pay dividends. Broadcom Inc. (AVGO) offers the highest yield at 0.7%, versus 0.2% for Teradyne, Inc. (TER).
08Is TER or AVGO 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 (+1598% 10Y return). Broadcom Inc. (AVGO) carries a higher beta of 1.75 — 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: +1598%, AVGO: +23.9%), 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.
09What are the main differences between TER and AVGO?
Both stocks operate in the Technology sector, making this a peer-level intra-sector comparison — the same macro tailwinds and headwinds will affect both. AVGO pays a dividend while TER does not, making them suitable for different income and tax situations. 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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