Applied Materials, Inc. (AMAT) vs Teradyne, Inc. (TER)

Applied Materials, Inc. and Teradyne, Inc. are both Semiconductor Equipment & Materials companies. Applied Materials, Inc. is the larger, with a market value of $341.3B against $53.7B — 6.4× the size. Applied Materials, Inc. trades at the lower P/E: 35.1× against 44.3×. Teradyne, Inc. grew revenue faster over the last twelve months: 57.9% against 7.77%. Applied Materials, Inc. has the higher net margin (30.1% vs 25.8%) and the lower return on invested capital (24.9% vs 27.0%). Only Teradyne, Inc. pays a dividend (0.16%). Across the 23 metrics below, Applied Materials, Inc. leads on 15 and Teradyne, Inc. on 8.

Valuation

Metric AMAT TER Semiconductor Equipment & Materials median
P/E 35.07 44.32 45.03
P/S 10.54 11.39 4.64
P/B 12.68 14.63 3.22
Price to free cash flow 56.50 63.54 48.18
EV/EBITDA 33.34 34.23 33.11
EV/Sales 10.45 11.36 5.52
Earnings yield 2.85% 2.26% 1.41%
Free cash flow yield 1.77% 1.57% 1.67%

Profitability

Metric AMAT TER Semiconductor Equipment & Materials median
Gross margin 49.40% 59.24% 43.95%
Operating margin 29.64% 30.23% 10.32%
Net margin 30.05% 25.77% 7.45%
Free cash flow margin 18.25% 17.92% 6.77%
Return on equity 41.07% 36.45% 4.78%
Return on assets 23.84% 26.48% 3.62%
Return on invested capital 24.91% 27.04% 6.10%

Growth

Metric AMAT TER Semiconductor Equipment & Materials median
Revenue growth (TTM) 7.77% 57.87% 14.60%
EPS growth (last fiscal year) 0.58% 4.52% (4.56%)
Revenue growth, 5-year CAGR 10.52% 0.44% 10.11%
Net income growth, 5-year CAGR 14.10% (6.71%) 0.00%

Health

Metric AMAT TER Semiconductor Equipment & Materials median
Debt to equity 0.26 0.00 0.09
Current ratio 2.42 2.12 3.66
Net debt to EBITDA (0.23) (0.16) (0.49)

Dividend

Metric AMAT TER Semiconductor Equipment & Materials median
Dividend yield 0.00% 0.16% 0.42%
Payout ratio 0.00 0.07 0.19

Size

Metric AMAT TER Semiconductor Equipment & Materials median
Market cap 341.25b 53.66b 3.80b

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