Ambarella Inc (AMBA)vsTeradyne Inc (TER)
AMBA
Ambarella Inc
$86.78
+3.57%
TECHNOLOGY · Cap: $3.77B
TER
Teradyne Inc
$379.31
-1.45%
TECHNOLOGY · Cap: $63.09B
Smart Verdict
WallStSmart Research — data-driven comparison
Teradyne Inc generates 1002% more annual revenue ($4.46B vs $405.19M). TER leads profitability with a 25.8% profit margin vs -17.2%. TER appears more attractively valued with a PEG of 0.94. TER earns a higher WallStSmart Score of 79/100 (B+).
AMBA
Avoid28
out of 100
Grade: F
TER
Strong Buy79
out of 100
Grade: B+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+15.3%
Fair Value
$78.92
Current Price
$86.78
$7.86 discount
Intrinsic value data unavailable for TER.
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Conservative balance sheet, low leverage
16.9% revenue growth
Strong operational efficiency at 33.2%
Revenue surging 103.9% year-over-year
Earnings expanding 385.8% YoY
Conservative balance sheet, low leverage
Generating 506.4B in free cash flow
Large-cap with strong market position
Areas to Watch
0.0% earnings growth
Distress zone — elevated risk
Weak financial health signals
Expensive relative to growth rate
Trading at 17.3x book value
ROE of 0.0% — below average capital efficiency
Premium valuation, high expectations priced in
Comparative Analysis Report
WallStSmart ResearchBull Case : AMBA
The strongest argument for AMBA centers on Debt/Equity, Revenue Growth. Revenue growth of 16.9% 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 : AMBA
The primary concerns for AMBA are EPS Growth, Altman Z-Score, Piotroski F-Score.
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
AMBA carries more volatility with a beta of 2.11 — 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.
Monitor SEMICONDUCTOR EQUIPMENT & MATERIALS industry trends, competitive dynamics, and regulatory changes.
Bottom Line
TER scores higher overall (79/100 vs 28/100), backed by strong 25.8% margins and 103.9% revenue growth. AMBA offers better value entry with a 15.3% 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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