WallStSmart

AXT Inc (AXTI)vsTeradyne Inc (TER)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Teradyne Inc generates 3457% more annual revenue ($4.46B vs $125.51M). TER leads profitability with a 25.8% profit margin vs 3.2%. TER appears more attractively valued with a PEG of 0.68. TER earns a higher WallStSmart Score of 79/100 (B+).

AXTI

Hold

43

out of 100

Grade: D

Growth: 4.7Profit: 4.5Value: 3.0Quality: 8.0
Piotroski: 2/9Altman Z: 2.30

TER

Strong Buy

79

out of 100

Grade: B+

Growth: 8.0Profit: 10.0Value: 5.0Quality: 8.0
Piotroski: 4/9Altman Z: 2.98

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

AXTI3 strengths · Avg: 9.3/10
Revenue GrowthGrowth
164.8%10/10

Revenue surging 164.8% year-over-year

Debt/EquityHealth
0.1010/10

Conservative balance sheet, low leverage

Operating MarginProfitability
21.9%8/10

Strong operational efficiency at 21.9%

TER6 strengths · Avg: 9.8/10
Return on EquityProfitability
33.5%10/10

Every $100 of equity generates 33 in profit

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

Market CapQuality
$59.37B9/10

Large-cap with strong market position

Areas to Watch

AXTI4 concerns · Avg: 2.5/10
Profit MarginProfitability
3.2%3/10

3.2% margin — thin

Piotroski F-ScoreQuality
2/93/10

Weak financial health signals

PEG RatioValuation
12.092/10

Expensive relative to growth rate

P/E RatioValuation
2159.0x2/10

Premium valuation, high expectations priced in

TER2 concerns · Avg: 3.0/10
Price/BookValuation
18.9x4/10

Trading at 18.9x book value

P/E RatioValuation
50.8x2/10

Premium valuation, high expectations priced in

Comparative Analysis Report

WallStSmart Research

Bull Case : AXTI

The strongest argument for AXTI centers on Revenue Growth, Debt/Equity, Operating Margin. Revenue growth of 164.8% demonstrates continued momentum.

Bull Case : TER

The strongest argument for TER centers on Return on Equity, Operating Margin, Revenue 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 : AXTI

The primary concerns for AXTI are Profit Margin, Piotroski F-Score, PEG Ratio. A P/E of 2159.0x leaves little room for execution misses. Thin 3.2% margins leave little buffer for downturns.

Bear Case : TER

The primary concerns for TER are Price/Book, P/E Ratio. A P/E of 50.8x leaves little room for execution misses.

Key Dynamics to Monitor

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

AXTI carries more volatility with a beta of 1.92 — expect wider price swings.

AXTI is growing revenue faster at 164.8% — sustainability is the question.

TER generates stronger free cash flow (378M), providing more financial flexibility.

Bottom Line

TER scores higher overall (79/100 vs 43/100), backed by strong 25.8% margins and 103.9% revenue growth. Both earn "Strong Buy" and "Hold" 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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