WallStSmart

AXT Inc (AXTI)vsTeradyne Inc (TER)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Teradyne Inc generates 3512% more annual revenue ($3.19B vs $88.33M). TER leads profitability with a 17.4% profit margin vs -24.1%. TER appears more attractively valued with a PEG of 1.61. TER earns a higher WallStSmart Score of 70/100 (B).

AXTI

Avoid

18

out of 100

Grade: F

Growth: 2.0Profit: 2.0Value: 4.0Quality: 5.0

TER

Strong Buy

70

out of 100

Grade: B

Growth: 10.0Profit: 8.5Value: 4.7Quality: 6.8
Piotroski: 4/9
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

Intrinsic value data unavailable for AXTI.

TERSignificantly Overvalued (-98.5%)

Margin of Safety

-98.5%

Fair Value

$161.93

Current Price

$323.36

$161.43 premium

UndervaluedFair: $161.93Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

AXTI0 strengths · Avg: 0/10

No standout strengths identified

TER5 strengths · Avg: 9.6/10
Operating MarginProfitability
30.3%10/10

Strong operational efficiency at 30.3%

Revenue GrowthGrowth
43.9%10/10

Revenue surging 43.9% year-over-year

EPS GrowthGrowth
81.4%10/10

Earnings expanding 81.4% YoY

Market CapQuality
$50.12B9/10

Large-cap with strong market position

Debt/EquityHealth
0.129/10

Conservative balance sheet, low leverage

Areas to Watch

AXTI4 concerns · Avg: 2.5/10
Price/BookValuation
13.6x4/10

Trading at 13.6x book value

PEG RatioValuation
12.092/10

Expensive relative to growth rate

Return on EquityProfitability
-7.9%2/10

ROE of -7.9% — below average capital efficiency

Revenue GrowthGrowth
-8.2%2/10

Revenue declined 8.2%

TER3 concerns · Avg: 3.3/10
PEG RatioValuation
1.614/10

Expensive relative to growth rate

Price/BookValuation
18.1x4/10

Trading at 18.1x book value

P/E RatioValuation
92.5x2/10

Premium valuation, high expectations priced in

Comparative Analysis Report

WallStSmart Research

Bull Case : AXTI

AXTI has a balanced fundamental profile.

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 : AXTI

The primary concerns for AXTI are Price/Book, PEG Ratio, Return on Equity.

Bear Case : TER

The primary concerns for TER are PEG Ratio, Price/Book, P/E Ratio. A P/E of 92.5x leaves little room for execution misses.

Key Dynamics to Monitor

AXTI profiles as a turnaround stock while TER is a growth play — different risk/reward profiles.

AXTI carries more volatility with a beta of 1.81 — expect wider price swings.

TER is growing revenue faster at 43.9% — sustainability is the question.

TER generates stronger free cash flow (219M), providing more financial flexibility.

Bottom Line

TER scores higher overall (70/100 vs 18/100), backed by strong 17.4% margins and 43.9% revenue growth. 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.

AXT Inc

TECHNOLOGY · SEMICONDUCTOR EQUIPMENT & MATERIALS · USA

AXT, Inc. designs, develops, manufactures and distributes single element and composite semiconductor substrates. The company is headquartered in Fremont, 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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