Ambarella Inc (AMBA)vsTeradyne Inc (TER)
AMBA
Ambarella Inc
$76.30
+2.73%
TECHNOLOGY · Cap: $3.31B
TER
Teradyne Inc
$359.77
+1.60%
TECHNOLOGY · Cap: $55.43B
Smart Verdict
WallStSmart Research — data-driven comparison
Teradyne Inc generates 869% more annual revenue ($3.79B vs $390.70M). TER leads profitability with a 22.6% profit margin vs -19.4%. TER appears more attractively valued with a PEG of 1.51. TER earns a higher WallStSmart Score of 75/100 (B+).
AMBA
Avoid32
out of 100
Grade: F
TER
Strong Buy75
out of 100
Grade: B+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+19.3%
Fair Value
$82.90
Current Price
$76.30
$6.60 discount
Intrinsic value data unavailable for TER.
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Conservative balance sheet, low leverage
Revenue surging 20.1% year-over-year
Strong operational efficiency at 37.6%
Revenue surging 87.0% year-over-year
Earnings expanding 314.8% YoY
Large-cap with strong market position
Every $100 of equity generates 29 in profit
Keeps 23 of every $100 in revenue as profit
Areas to Watch
Expensive relative to growth rate
0.0% earnings growth
Weak financial health signals
ROE of -13.1% — below average capital efficiency
Expensive relative to growth rate
Premium valuation, high expectations priced in
Trading at 20.1x book value
Comparative Analysis Report
WallStSmart ResearchBull Case : AMBA
The strongest argument for AMBA centers on Debt/Equity, Revenue Growth. Revenue growth of 20.1% demonstrates continued momentum.
Bull Case : TER
The strongest argument for TER centers on Operating Margin, Revenue Growth, EPS Growth. Profitability is solid with margins at 22.6% and operating margin at 37.6%. Revenue growth of 87.0% demonstrates continued momentum.
Bear Case : AMBA
The primary concerns for AMBA are PEG Ratio, EPS Growth, Piotroski F-Score.
Bear Case : TER
The primary concerns for TER are PEG Ratio, P/E Ratio, Price/Book. A P/E of 65.7x leaves little room for execution misses.
Key Dynamics to Monitor
AMBA carries more volatility with a beta of 2.16 — expect wider price swings.
TER is growing revenue faster at 87.0% — sustainability is the question.
TER generates stronger free cash flow (200M), providing more financial flexibility.
Monitor SEMICONDUCTOR EQUIPMENT & MATERIALS industry trends, competitive dynamics, and regulatory changes.
Bottom Line
TER scores higher overall (75/100 vs 32/100), backed by strong 22.6% margins and 87.0% revenue growth. AMBA offers better value entry with a 19.3% margin of safety. Both earn "Strong Buy" and "Avoid" ratings respectively — the choice depends on your investment horizon and risk tolerance.
This analysis is generated from publicly available financial data. Not financial advice.
Ambarella Inc
TECHNOLOGY · SEMICONDUCTOR EQUIPMENT & MATERIALS · USA
Ambarella, Inc. develops semiconductor video solutions that enable high definition (HD) and ultra HD compression, image processing, and deep neural network processing globally. The company is headquartered in Santa Clara, California.
Teradyne Inc
TECHNOLOGY · SEMICONDUCTOR EQUIPMENT & MATERIALS · USA
Teradyne, Inc. is an American automatic test equipment (ATE) designer and manufacturer based in North Reading, Massachusetts.
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