TER vs COHU vs AMAT vs FORM

For growth investors, Teradyne, Inc.

(TER) is the stronger pick with 13. 1% revenue growth year-over-year, versus 2. 8% for FormFactor, Inc. (FORM). Applied Materials, Inc. (AMAT) offers the better valuation at 47. 4x trailing P/E (37. 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.

On trailing P/E, Applied Materials, Inc.

(AMAT) is the cheapest at 47. 4x versus FormFactor, Inc. at 209. 7x. On forward P/E, Applied Materials, Inc. is actually cheaper at 37. 1x.

Over the past 5 years, FormFactor, Inc.

(FORM) delivered a total return of +273. 9%, compared to +22. 2% for Cohu, Inc. (COHU). Over 10 years, the gap is even starker: AMAT returned +20. 1% versus COHU's +330. 2%. Past returns do not guarantee future results, and the stock with the higher historical return may already have its best growth priced in.

By beta (market sensitivity over 5 years), FormFactor, Inc.

(FORM) is the lower-risk stock at 2. 02β versus Teradyne, Inc. 's 2. 60β — meaning TER is approximately 28% more volatile than FORM relative to the S&P 500. On balance sheet safety, FormFactor, Inc. (FORM) carries a lower debt/equity ratio of 4% versus 46% for Cohu, Inc. — giving it more financial flexibility in a downturn.

By revenue growth (latest reported year), Teradyne, Inc.

(TER) is pulling ahead at 13. 1% versus 2. 8% for FormFactor, Inc. (FORM). On earnings-per-share growth, the picture is similar: Teradyne, Inc. grew EPS 4. 8% year-over-year, compared to -22. 5% for FormFactor, 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.

Applied Materials, Inc.

(AMAT) is the more profitable company, earning 24. 7% net margin versus -16. 4% for Cohu, 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 -13. 3% for COHU. 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.

On forward earnings alone, Applied Materials, Inc.

(AMAT) trades at 37. 1x forward P/E versus 89. 2x for Cohu, Inc. — 52. 1x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for COHU: 4. 8% to $49. 75.

In this comparison, AMAT (0.

4% yield), TER (0. 1% yield) pay a dividend. COHU, FORM do not pay a meaningful dividend and should not be held primarily for income.

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 (+1803% 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: +1803%, AMAT: +20. 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.

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.