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 $253.4B against $33.2B — 7.6× the size. Teradyne, Inc. trades at the lower P/E: 24.8× against 27.7×. Teradyne, Inc. grew revenue faster over the last twelve months: 74.9% against 7.77%. Applied Materials, Inc. has the higher net margin (30.1% vs 27.5%) and the lower return on invested capital (24.9% vs 31.2%). Only Teradyne, Inc. pays a dividend (0.23%). Across the 23 metrics below, Teradyne, Inc. leads on 18 and Applied Materials, Inc. on 5.

Valuation

Metric AMAT TER Semiconductor Equipment & Materials median
P/E 27.69 24.76 33.70
P/S 8.32 6.79 4.22
P/B 10.01 9.20 2.94
Price to free cash flow 44.60 33.11 31.49
EV/EBITDA 26.26 19.32 22.64
EV/Sales 8.23 6.74 4.97
Earnings yield 3.61% 4.04% 2.02%
Free cash flow yield 2.24% 3.02% 2.27%

Profitability

Metric AMAT TER Semiconductor Equipment & Materials median
Gross margin 49.40% 59.32% 46.86%
Operating margin 29.64% 32.11% 12.02%
Net margin 30.05% 27.46% 10.16%
Free cash flow margin 18.25% 20.49% 6.73%
Return on equity 41.07% 42.87% 5.31%
Return on assets 23.84% 29.17% 4.10%
Return on invested capital 24.91% 31.16% 6.36%

Growth

Metric AMAT TER Semiconductor Equipment & Materials median
Revenue growth (TTM) 7.77% 74.88% 15.82%
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 2.08 3.56
Net debt to EBITDA (0.23) (0.16) (0.49)

Dividend

Metric AMAT TER Semiconductor Equipment & Materials median
Dividend yield 0.00% 0.23% 0.59%
Payout ratio 0.00 0.06 0.16

Size

Metric AMAT TER Semiconductor Equipment & Materials median
Market cap 253.36b 33.21b 3.04b

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