WallStSmart

Applied Materials Inc (AMAT)vsTeradyne Inc (TER)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Applied Materials Inc generates 550% more annual revenue ($29.02B vs $4.46B). AMAT leads profitability with a 29.3% profit margin vs 25.8%. TER appears more attractively valued with a PEG of 0.94. TER earns a higher WallStSmart Score of 79/100 (B+).

AMAT

Strong Buy

74

out of 100

Grade: B

Growth: 6.7Profit: 9.5Value: 4.3Quality: 8.5
Piotroski: 4/9Altman Z: 4.98

TER

Strong Buy

79

out of 100

Grade: B+

Growth: 8.0Profit: 8.5Value: 5.0Quality: 8.0
Piotroski: 4/9Altman Z: 2.98

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

AMAT6 strengths · Avg: 9.7/10
Market CapQuality
$433.99B10/10

Mega-cap, among the largest globally

Return on EquityProfitability
35.6%10/10

Every $100 of equity generates 36 in profit

Operating MarginProfitability
31.9%10/10

Strong operational efficiency at 31.9%

Altman Z-ScoreHealth
4.9810/10

Safe zone — low bankruptcy risk

Profit MarginProfitability
29.3%9/10

Keeps 29 of every $100 in revenue as profit

Debt/EquityHealth
0.279/10

Conservative balance sheet, low leverage

TER6 strengths · Avg: 9.8/10
Operating MarginProfitability
33.2%10/10

Strong operational efficiency at 33.2%

Revenue GrowthGrowth
103.9%10/10

Revenue surging 103.9% year-over-year

EPS GrowthGrowth
385.8%10/10

Earnings expanding 385.8% YoY

Debt/EquityHealth
0.0310/10

Conservative balance sheet, low leverage

Free Cash FlowQuality
$506.42B10/10

Generating 506.4B in free cash flow

Market CapQuality
$63.09B9/10

Large-cap with strong market position

Areas to Watch

AMAT2 concerns · Avg: 3.0/10
Price/BookValuation
17.9x4/10

Trading at 17.9x book value

P/E RatioValuation
51.5x2/10

Premium valuation, high expectations priced in

TER3 concerns · Avg: 3.0/10
Price/BookValuation
17.3x4/10

Trading at 17.3x book value

Return on EquityProfitability
0.0%3/10

ROE of 0.0% — below average capital efficiency

P/E RatioValuation
55.4x2/10

Premium valuation, high expectations priced in

Comparative Analysis Report

WallStSmart Research

Bull Case : AMAT

The strongest argument for AMAT centers on Market Cap, Return on Equity, Operating Margin. Profitability is solid with margins at 29.3% and operating margin at 31.9%. Revenue growth of 11.4% 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 25.8% and operating margin at 33.2%. Revenue growth of 103.9% demonstrates continued momentum.

Bear Case : AMAT

The primary concerns for AMAT are Price/Book, P/E Ratio. A P/E of 51.5x leaves little room for execution misses.

Bear Case : TER

The primary concerns for TER are Price/Book, Return on Equity, P/E Ratio. A P/E of 55.4x leaves little room for execution misses.

Key Dynamics to Monitor

AMAT profiles as a mature stock while TER is a growth play — different risk/reward profiles.

TER carries more volatility with a beta of 1.79 — expect wider price swings.

TER is growing revenue faster at 103.9% — sustainability is the question.

TER generates stronger free cash flow (506.4B), providing more financial flexibility.

Bottom Line

TER scores higher overall (79/100 vs 74/100), backed by strong 25.8% margins and 103.9% revenue growth. Both earn "Strong Buy" and "Strong 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 →

Want to dig deeper into these stocks?