Applied Materials Inc (AMAT)vsTeradyne Inc (TER)
AMAT
Applied Materials Inc
$349.47
+2.21%
TECHNOLOGY · Cap: $279.72B
TER
Teradyne Inc
$300.07
+0.22%
TECHNOLOGY · Cap: $46.70B
Smart Verdict
WallStSmart Research — data-driven comparison
Applied Materials Inc generates 784% more annual revenue ($28.21B vs $3.19B). AMAT leads profitability with a 27.8% profit margin vs 17.4%. TER appears more attractively valued with a PEG of 1.65. TER earns a higher WallStSmart Score of 70/100 (B).
AMAT
Buy64
out of 100
Grade: C+
TER
Strong Buy70
out of 100
Grade: B
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+23.2%
Fair Value
$465.19
Current Price
$349.47
$115.72 discount
Margin of Safety
-98.5%
Fair Value
$161.93
Current Price
$300.07
$138.14 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Mega-cap, among the largest globally
Every $100 of equity generates 39 in profit
Earnings expanding 75.2% YoY
Safe zone — low bankruptcy risk
Keeps 28 of every $100 in revenue as profit
Strong operational efficiency at 29.9%
Strong operational efficiency at 30.3%
Revenue surging 43.9% year-over-year
Earnings expanding 81.4% YoY
Conservative balance sheet, low leverage
Areas to Watch
Expensive relative to growth rate
Premium valuation, high expectations priced in
Trading at 12.8x book value
Revenue declined 2.1%
Expensive relative to growth rate
Trading at 16.8x book value
Premium valuation, high expectations priced in
Comparative Analysis Report
WallStSmart ResearchBull Case : AMAT
The strongest argument for AMAT centers on Market Cap, Return on Equity, EPS Growth. Profitability is solid with margins at 27.8% and operating margin at 29.9%.
Bull Case : TER
The strongest argument for TER centers on Operating Margin, Revenue Growth, EPS Growth. Profitability is solid with margins at 17.4% and operating margin at 30.3%. Revenue growth of 43.9% demonstrates continued momentum.
Bear Case : AMAT
The primary concerns for AMAT are PEG Ratio, P/E Ratio, Price/Book.
Bear Case : TER
The primary concerns for TER are PEG Ratio, Price/Book, P/E Ratio. A P/E of 86.2x leaves little room for execution misses.
Key Dynamics to Monitor
AMAT profiles as a declining stock while TER is a growth play — different risk/reward profiles.
TER carries more volatility with a beta of 1.80 — expect wider price swings.
TER is growing revenue faster at 43.9% — sustainability is the question.
AMAT generates stronger free cash flow (1.0B), providing more financial flexibility.
Bottom Line
TER scores higher overall (70/100 vs 64/100), backed by strong 17.4% margins and 43.9% revenue growth. AMAT offers better value entry with a 23.2% margin of safety. Both earn "Strong Buy" and "Buy" ratings respectively — the choice depends on your investment horizon and risk tolerance.
This analysis is generated from publicly available financial data. Not financial advice.
Applied Materials Inc
TECHNOLOGY · SEMICONDUCTOR EQUIPMENT & MATERIALS · USA
Applied Materials, Inc. is an American corporation that supplies equipment, services and software for the manufacture of semiconductor (integrated circuit) chips for electronics, flat panel displays for computers, smartphones and televisions, and solar products. The company also supplies equipment to produce coatings for flexible electronics, packaging and other applications. The company is headquartered in Santa Clara, California, in Silicon Valley.
Visit Website →Teradyne Inc
TECHNOLOGY · SEMICONDUCTOR EQUIPMENT & MATERIALS · USA
Teradyne, Inc. is an American automatic test equipment (ATE) designer and manufacturer based in North Reading, Massachusetts.
Visit Website →Compare with Other SEMICONDUCTOR EQUIPMENT & MATERIALS Stocks
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