FormFactor, Inc. (FORM) vs Teradyne, Inc. (TER)

FormFactor, Inc. and Teradyne, Inc. are both Semiconductor Equipment & Materials companies. Teradyne, Inc. is the larger, with a market value of $62.4B against $10.3B — 6.1× the size. Teradyne, Inc. trades at the lower P/E: 54.3× against 87.8×. Teradyne, Inc. grew revenue faster over the last twelve months: 57.9% against 18.0%. Teradyne, Inc. has the higher net margin (25.8% vs 12.8%) and the higher return on invested capital (27.0% vs 9.33%). Across the 22 metrics below, Teradyne, Inc. leads on 14 and FormFactor, Inc. on 8.

Valuation

Metric FORM TER Semiconductor Equipment & Materials median
P/E 87.75 54.35 54.39
P/S 11.23 13.96 6.08
P/B 9.12 17.95 4.89
Price to free cash flow 74.19 77.92 60.92
EV/EBITDA 64.77 42.01 39.95
EV/Sales 10.86 13.94 6.36
Earnings yield 1.14% 1.84% 1.14%
Free cash flow yield 1.35% 1.28% 1.28%

Profitability

Metric FORM TER Semiconductor Equipment & Materials median
Gross margin 43.13% 59.24% 43.95%
Operating margin 12.85% 30.23% 10.32%
Net margin 12.80% 25.77% 7.45%
Free cash flow margin 15.14% 17.92% 6.77%
Return on equity 10.99% 36.45% 4.78%
Return on assets 9.15% 26.48% 3.62%
Return on invested capital 9.33% 27.04% 6.10%

Growth

Metric FORM TER Semiconductor Equipment & Materials median
Revenue growth (TTM) 18.01% 57.87% 14.60%
EPS growth (last fiscal year) (22.47%) 4.52% —
Revenue growth, 5-year CAGR 2.51% 0.44% 8.85%
Net income growth, 5-year CAGR (7.09%) (6.71%) 0.00%

Health

Metric FORM TER Semiconductor Equipment & Materials median
Debt to equity 0.01 0.00 0.09
Current ratio 4.08 2.12 3.66
Net debt to EBITDA (2.85) (0.16) (0.49)

Dividend

Metric FORM TER Semiconductor Equipment & Materials median
Dividend yield — 0.47% 0.85%
Payout ratio 0.00 0.13 0.00

Size

Metric FORM TER Semiconductor Equipment & Materials median
Market cap 10.27b 62.38b 4.63b

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