AMAT vs. TER: Applied Materials vs. Teradyne Stock Comparison

November 11, 2026

How do Applied Materials (AMAT) and Teradyne (TER) stack up? This page sets them side by side across company profile, performance and risk, profitability, growth, financial strength, dividends, and valuation, with selected fundamentals also measured against each stock's industry-group peers.

Company Profile

Applied Materials (AMAT) and Teradyne (TER) are both classified in the Semiconductor Materials & Equipment sub-industry within the broader Semiconductors & Semiconductor Equipment industry, placing them in the closest GICS peer bucket.

Company profile comparison for Applied Materials (AMAT) and Teradyne (TER)
Profile Item	AMAT	TER
Name	Applied Materials Inc.	Teradyne, Inc.
Country/Region	United States	United States
GICS Sector	Information Technology	Information Technology
GICS Industry Group	Semiconductors & Semiconductor Equipment	Semiconductors & Semiconductor Equipment
GICS Industry	Semiconductors & Semiconductor Equipment	Semiconductors & Semiconductor Equipment
GICS Sub-Industry	Semiconductor Materials & Equipment	Semiconductor Materials & Equipment
Market Capitalization	264.04 billion USD	34.07 billion USD
Currency	USD	USD
Exchange	Nasdaq	Nasdaq
Listing Date	March 17, 1980	February 21, 1973
Security Type	Common Stock	Common Stock

Price Performance

Cumulative Growth

AMAT

TER

GSPC

Applied Materials (AMAT) vs. Teradyne (TER), with S&P 500 (GSPC) for reference: Growth of a $10,000 investment over the past five years. Adjusted for dividends and splits.

Trailing Returns

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Trailing total returns for Applied Materials (AMAT) and Teradyne (TER). Returns over one year are annualized.

Calendar-Year Returns

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Calendar-year total returns for Applied Materials (AMAT) and Teradyne (TER). Each bar is that year's total return, measured year-end to year-end.

Performance Metrics

Price performance metrics for Applied Materials (AMAT) and Teradyne (TER)
Metric	AMAT	TER
Total Return (1Y)	62.12%	31.13%
Total Return (3Y, Annualized)	38.42%	41.60%
Total Return (5Y, Annualized)	19.86%	10.83%

Risk Profile

Drawdown History

AMAT

TER

GSPC

Applied Materials (AMAT) vs. Teradyne (TER), with S&P 500 (GSPC) for reference: Drawdown from the running peak over the past five years. Each line shows the decline from its prior peak; 0% marks a new high.

Return Distribution

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Distribution of monthly total returns for Applied Materials (AMAT) and Teradyne (TER). Each bar is the share of months whose return fell in that 5% bucket.

Risk Metrics

Risk profile metrics for Applied Materials (AMAT) and Teradyne (TER)
Metric	AMAT	TER
Volatility (1Y, Annualized)	63.72%	78.35%
Beta (5Y)	1.68	1.78
Max Drawdown (5Y)	-55.80%	-59.12%
Avg. Volume (3M)	7.16M	3.01M

Risk-Adjusted Performance

Risk-Return Positioning

AMAT and TER are plotted by 1-year volatility (risk) and 1-year return. The dashed Capital Allocation Line runs from the risk-free rate through the shared industry median.

Risk-Adjusted Metrics

Risk-adjusted metrics for Applied Materials (AMAT) and Teradyne (TER)
Metric	AMAT	TER
Sharpe Ratio (1Y)	0.91	0.34
Sortino Ratio (1Y)	1.35	0.48

Profitability

ROE (TTM)

Both Applied Materials (AMAT) at 41.07% and Teradyne (TER) at 42.72% sit in the top peer quartile for ROE, suggesting each generates more profit from shareholders’ equity than typical industry peers.

AMAT

Semiconductors & Semiconductor Equipment industry group

41.07%

Max: 52.82%
AMAT: 41.07%
Q3: 22.26%
Median: 10.58%
Q1: 1.29%
Min: -16.89%

TER

Semiconductors & Semiconductor Equipment industry group

42.72%

Max: 52.82%
TER: 42.72%
Q3: 22.26%
Median: 10.58%
Q1: 1.29%
Min: -16.89%

Applied Materials (AMAT) vs. Teradyne (TER): A comparison of their ROE against the Semiconductors & Semiconductor Equipment industry group benchmark.

Net Margin (TTM)

Applied Materials (AMAT) at 30.05% retains a top-quartile share of revenue as profit, ahead of Teradyne (TER) at 27.46%, which keeps about the industry-typical share.

AMAT

Semiconductors & Semiconductor Equipment industry group

30.05%

Max: 63.80%
AMAT: 30.05%
Q3: 28.36%
Median: 11.44%
Q1: 0.90%
Min: -37.77%

TER

Semiconductors & Semiconductor Equipment industry group

27.46%

Max: 63.80%
Q3: 28.36%
TER: 27.46%
Median: 11.44%
Q1: 0.90%
Min: -37.77%

Applied Materials (AMAT) vs. Teradyne (TER): A comparison of their net margin against the Semiconductors & Semiconductor Equipment industry group benchmark.

Operating Margin (TTM)

Both Applied Materials (AMAT) at 33.74% and Teradyne (TER) at 30.87% convert sales into operating profit at a top-quartile rate, pointing to tighter cost discipline before financing and tax.

AMAT

Semiconductors & Semiconductor Equipment industry group

33.74%

Max: 58.66%
AMAT: 33.74%
Q3: 30.23%
Median: 15.91%
Q1: 7.54%
Min: -25.74%

TER

Semiconductors & Semiconductor Equipment industry group

30.87%

Max: 58.66%
TER: 30.87%
Q3: 30.23%
Median: 15.91%
Q1: 7.54%
Min: -25.74%

Applied Materials (AMAT) vs. Teradyne (TER): A comparison of their operating margin against the Semiconductors & Semiconductor Equipment industry group benchmark.

Profitability Metrics

Profitability metrics for Applied Materials (AMAT) and Teradyne (TER)
Metric	AMAT	TER
ROE (TTM)	41.07%	42.72%
ROA (TTM)	15.48%	21.59%
Net Margin (TTM)	30.05%	27.46%
Operating Margin (TTM)	33.74%	30.87%
Gross Margin (TTM)	49.40%	59.32%

Growth

Revenue Growth

Both Applied Materials (AMAT) at 4.39% and Teradyne (TER) at 13.13% land near their industries' usual revenue growth ranges, so top-line momentum looks broadly in line with peers on both sides.

Applied Materials (AMAT) vs. Teradyne (TER): A comparison of their Revenue Growth across different time periods.

EPS Growth

Both Applied Materials (AMAT) at 0.58% and Teradyne (TER) at 4.52% land near their industries' usual EPS growth ranges, so bottom-line momentum looks broadly in line with peers on both sides.

Applied Materials (AMAT) vs. Teradyne (TER): A comparison of their EPS Growth across different time periods.

Growth Metrics

Growth metrics for Applied Materials (AMAT) and Teradyne (TER)
Metric	AMAT	TER
Revenue Growth (YoY)	4.39%	13.13%
Revenue Growth (3Y CAGR)	3.23%	0.37%
EPS Growth (YoY)	0.58%	4.52%
EPS Growth (3Y CAGR)	5.19%	-6.31%

Financial Strength

Current Ratio (MRQ)

Applied Materials (AMAT) at 2.42 keeps current ratio within its industry’s typical mid-range, while Teradyne (TER) at 2.08 runs in the tighter-liquidity quartile — a thinner cushion against current liabilities for TER.

AMAT

Semiconductors & Semiconductor Equipment industry group

2.42

Max: 10.33
Q3: 5.62
Median: 3.33
AMAT: 2.42
Q1: 2.35
Min: 1.03

TER

Semiconductors & Semiconductor Equipment industry group

2.08

Max: 10.33
Q3: 5.62
Median: 3.33
Q1: 2.35
TER: 2.08
Min: 1.03

Applied Materials (AMAT) vs. Teradyne (TER): A comparison of their current ratio against the Semiconductors & Semiconductor Equipment industry group benchmark.

Debt / Equity (MRQ)

Teradyne (TER) at 0.04 keeps leverage in the lower industry quartile, while Applied Materials (AMAT) at 0.29 runs a more typical debt-to-equity mix.

AMAT

Semiconductors & Semiconductor Equipment industry group

0.29

Max: 1.46
Q3: 0.65
AMAT: 0.29
Median: 0.27
Q1: 0.04
Min: 0.00

TER

Semiconductors & Semiconductor Equipment industry group

0.04

Max: 1.46
Q3: 0.65
Median: 0.27
Q1: 0.04
TER: 0.04
Min: 0.00

Applied Materials (AMAT) vs. Teradyne (TER): A comparison of their debt-to-equity ratio against the Semiconductors & Semiconductor Equipment industry group benchmark.

Financial Strength Metrics

Financial strength metrics for Applied Materials (AMAT) and Teradyne (TER)
Metric	AMAT	TER
Current Ratio (MRQ)	2.42	2.08
Debt / Equity (MRQ)	0.29	0.04
Net Debt / EBITDA	-0.19	-0.19

Dividends

Dividend Yield (TTM)

Both Applied Materials (AMAT) at 0.62% and Teradyne (TER) at 0.24% pay solid, industry-typical yields, sitting squarely within their peers’ usual range.

AMAT

Semiconductors & Semiconductor Equipment industry group

0.62%

Max: 1.37%
Q3: 0.65%
AMAT: 0.62%
Median: 0.00%
Q1: 0.00%
Min: 0.00%

TER

Semiconductors & Semiconductor Equipment industry group

0.24%

Max: 1.37%
Q3: 0.65%
TER: 0.24%
Median: 0.00%
Q1: 0.00%
Min: 0.00%

Applied Materials (AMAT) vs. Teradyne (TER): A comparison of their dividend yield against the Semiconductors & Semiconductor Equipment industry group benchmark.

Dividend Payout Ratio (TTM)

Both Applied Materials (AMAT) at 16.48% and Teradyne (TER) at 5.86% keep payout ratio within their industries’ typical mid-ranges — dividend policies that share earnings without consuming too much of them.

AMAT

Semiconductors & Semiconductor Equipment industry group

16.48%

Max: 49.64%
Q3: 21.71%
AMAT: 16.48%
Median: 0.00%
Q1: 0.00%
Min: 0.00%

TER

Semiconductors & Semiconductor Equipment industry group

5.86%

Max: 49.64%
Q3: 21.71%
TER: 5.86%
Median: 0.00%
Q1: 0.00%
Min: 0.00%

Applied Materials (AMAT) vs. Teradyne (TER): A comparison of their payout ratio against the Semiconductors & Semiconductor Equipment industry group benchmark.

Dividend Metrics

Dividend metrics for Applied Materials (AMAT) and Teradyne (TER)
Metric	AMAT	TER
Dividend Yield (TTM)	0.62%	0.24%
Dividend Payout Ratio (TTM)	16.48%	5.86%

Valuation

P/E Ratio (TTM)

Both Applied Materials (AMAT) at 28.71 and Teradyne (TER) at 25.08 land around their industries’ usual P/E ratio levels — neither is getting a clear earnings-multiple discount or premium versus peers.

AMAT

Semiconductors & Semiconductor Equipment industry group

28.71

Max: 110.34
Q3: 66.81
Median: 37.02
AMAT: 28.71
Q1: 23.96
Min: 8.12

TER

Semiconductors & Semiconductor Equipment industry group

25.08

Max: 110.34
Q3: 66.81
Median: 37.02
TER: 25.08
Q1: 23.96
Min: 8.12

Applied Materials (AMAT) vs. Teradyne (TER): A comparison of their P/E ratio against the Semiconductors & Semiconductor Equipment industry group benchmark.

P/S Ratio (TTM)

On P/S ratio, both Applied Materials (AMAT) at 8.56 and Teradyne (TER) at 6.81 are priced roughly in line with their industries — neither looks cheap nor rich on a sales basis.

AMAT

Semiconductors & Semiconductor Equipment industry group

8.56

Max: 21.42
Q3: 12.27
AMAT: 8.56
Median: 5.76
Q1: 2.73
Min: 0.00

TER

Semiconductors & Semiconductor Equipment industry group

6.81

Max: 21.42
Q3: 12.27
TER: 6.81
Median: 5.76
Q1: 2.73
Min: 0.00

Applied Materials (AMAT) vs. Teradyne (TER): A comparison of their P/S ratio against the Semiconductors & Semiconductor Equipment industry group benchmark.

P/B Ratio (MRQ)

Both Applied Materials (AMAT) at 10.30 and Teradyne (TER) at 9.24 carry a premium to book value versus peers, sitting in the upper P/B ratio quartile of their industries.

AMAT

Semiconductors & Semiconductor Equipment industry group

10.30

Max: 14.06
AMAT: 10.30
Q3: 7.44
Median: 4.29
Q1: 2.30
Min: 0.20

TER

Semiconductors & Semiconductor Equipment industry group

9.24

Max: 14.06
TER: 9.24
Q3: 7.44
Median: 4.29
Q1: 2.30
Min: 0.20

Applied Materials (AMAT) vs. Teradyne (TER): A comparison of their P/B ratio against the Semiconductors & Semiconductor Equipment industry group benchmark.

Valuation Metrics

Valuation metrics for Applied Materials (AMAT) and Teradyne (TER)
Metric	AMAT	TER
P/E Ratio (TTM)	28.71	25.08
P/S Ratio (TTM)	8.56	6.81
P/B Ratio (MRQ)	10.30	9.24
Free Cash Flow Yield (TTM)	1.16%	1.76%