ASML Holding N.V. (ASML) vs Teradyne, Inc. (TER)

ASML Holding N.V. and Teradyne, Inc. are both Semiconductor Equipment & Materials companies. ASML Holding N.V. is the larger, with a market value of $638.8B against $53.7B — 11.9× the size. ASML Holding N.V. trades at the lower P/E: 40.4× against 44.3×. Teradyne, Inc. grew revenue faster over the last twelve months: 57.9% against 28.8%. ASML Holding N.V. has the higher net margin (34.1% vs 25.8%) and the higher return on invested capital (84.9% vs 27.0%). Both pay a dividend; ASML Holding N.V. yields more (0.55% vs 0.16%). Across the 23 metrics below, ASML Holding N.V. leads on 14 and Teradyne, Inc. on 9.

Valuation

Metric ASML TER Semiconductor Equipment & Materials median
P/E 40.38 44.32 45.03
P/S 13.73 11.39 4.64
P/B 28.34 14.63 3.22
Price to free cash flow 26.25 63.54 48.18
EV/EBITDA 32.88 34.23 33.11
EV/Sales 13.50 11.36 5.52
Earnings yield 2.48% 2.26% 1.41%
Free cash flow yield 3.81% 1.57% 1.67%

Profitability

Metric ASML TER Semiconductor Equipment & Materials median
Gross margin 54.35% 59.24% 43.95%
Operating margin 38.55% 30.23% 10.32%
Net margin 34.13% 25.77% 7.45%
Free cash flow margin 52.28% 17.92% 6.77%
Return on equity 0.00% 36.45% 4.78%
Return on assets 25.93% 26.48% 3.62%
Return on invested capital 84.93% 27.04% 6.10%

Growth

Metric ASML TER Semiconductor Equipment & Materials median
Revenue growth (TTM) 28.77% 57.87% 14.60%
EPS growth (last fiscal year) 34.25% 4.52% (4.56%)
Revenue growth, 5-year CAGR 18.28% 0.44% 10.11%
Net income growth, 5-year CAGR 21.78% (6.71%) 0.00%

Health

Metric ASML TER Semiconductor Equipment & Materials median
Debt to equity 0.09 0.00 0.09
Current ratio 1.49 2.12 3.66
Net debt to EBITDA (0.72) (0.16) (0.49)

Dividend

Metric ASML TER Semiconductor Equipment & Materials median
Dividend yield 0.55% 0.16% 0.42%
Payout ratio 0.22 0.07 0.19

Size

Metric ASML TER Semiconductor Equipment & Materials median
Market cap 638.81b 53.66b 3.80b

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