TER vs. AMAT

Last updated Jun 4, 2026

TER (Teradyne, Inc.) and AMAT (Applied Materials, Inc.) are both stocks. Both operate in the Semiconductor Equipment & Materials industry within the Technology sector. Over the past 10 years, TER returned 36.21%/yr vs 36.77%/yr for AMAT. A 0.62 correlation means they provide meaningful diversification when combined.

Performance

TER vs. AMAT - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Teradyne, Inc. (TER) and Applied Materials, Inc. (AMAT). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, TER achieves a 111.82% return, which is significantly higher than AMAT's 95.35% return. Both investments have delivered pretty close results over the past 10 years, with TER having a 36.21% annualized return and AMAT not far ahead at 36.77%.

TER

• 1D: 4.34%
• 1M: 21.45%
• YTD: 111.82%
• 6M: 110.17%
• 1Y: 404.26%
• 3Y*: 58.93%
• 5Y*: 25.97%
• 10Y*: 36.21%

AMAT

• 1D: 2.19%
• 1M: 28.11%
• YTD: 95.35%
• 6M: 86.88%
• 1Y: 211.89%
• 3Y*: 56.21%
• 5Y*: 30.15%
• 10Y*: 36.77%

*Multi-year figures are annualized to reflect compound growth (CAGR)

TER vs. AMAT - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
TER Teradyne, Inc.	111.82%	54.39%	16.51%	24.78%	-46.35%	36.81%	76.73%	118.93%	-24.37%	66.16%
AMAT Applied Materials, Inc.	95.35%	59.60%	1.13%	67.97%	-37.54%	83.64%	43.29%	89.86%	-34.92%	59.86%

Correlation

The correlation between TER and AMAT is 0.72, which is moderate. They share some common price drivers but move independently often enough to provide real diversification benefit when combined.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.72
Correlation (3Y) Calculated over the trailing 3-year period	0.74
Correlation (5Y) Calculated over the trailing 5-year period	0.80
Correlation (10Y) Calculated over the trailing 10-year period	0.79
Correlation (All Time) Calculated using the full available price history since Mar 12, 1987	0.62

The correlation between TER and AMAT shifts across timeframes, from 0.62 (all time) to 0.80 (5 years), reflecting how their relationship changes across market environments.

Fundamentals

Market Cap TER : $64.58B AMAT : $400.12B
EPS TER : $5.38 AMAT : $10.61
PE Ratio TER : 76.20 AMAT : 47.19
PS Ratio TER : 17.19 AMAT : 13.83
PB Ratio TER : 20.54 AMAT : 16.73
Total Revenue (TTM) TER : $3.79B AMAT : $29.02B
Gross Profit (TTM) TER : $2.23B AMAT : $14.21B
EBITDA (TTM) TER : $1.11B AMAT : $9.92B

Return for Risk

TER vs. AMAT — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.

TER

TER Risk / Return Rank: 98
TER Sharpe Ratio Rank: 99
TER Sortino Ratio Rank: 97
TER Omega Ratio Rank: 97
TER Calmar Ratio Rank: 99
TER Martin Ratio Rank: 99

AMAT

AMAT Risk / Return Rank: 96
AMAT Sharpe Ratio Rank: 98
AMAT Sortino Ratio Rank: 95
AMAT Omega Ratio Rank: 95
AMAT Calmar Ratio Rank: 97
AMAT Martin Ratio Rank: 97

The rank (0–100) shows how this investment's returns compare to the risk taken. Higher = better. Based on the past 12 months of data, combining Sharpe, Sortino, and other metrics used by quantitative funds and institutional investors.

TER vs. AMAT - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Teradyne, Inc. (TER) and Applied Materials, Inc. (AMAT). Risk-adjusted metrics are performance indicators that assess an investment's returns in relation to its risk, enabling a more accurate comparison of different investment options.

	TER	AMAT	Difference
Sharpe ratio: Return per unit of total volatility	6.28	4.63	+1.65
Sortino ratio: Return per unit of downside risk	4.92	4.14	+0.78
Omega ratio: Gain probability vs. loss probability	1.70	1.59	+0.11
Calmar ratio: Return relative to maximum drawdown	15.25	9.98	+5.27
Martin ratio: Return relative to average drawdown	55.87	28.53	+27.34
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

TER vs. AMAT - Sharpe Ratio Comparison

The current TER Sharpe Ratio is 6.28, which is higher than the AMAT Sharpe Ratio of 4.63. The chart below compares the historical Sharpe Ratios of TER and AMAT, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Sharpe Ratios by Period

	TER	AMAT	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	6.28	4.63	+1.65
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.53	0.70	-0.17
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.81	0.87	-0.06
Sharpe Ratio (All Time) Calculated using the full available price history	0.23	0.43	-0.20

Drawdowns

TER vs. AMAT - Drawdown Comparison

The maximum TER drawdown since its inception was -97.30%, which is greater than AMAT's maximum drawdown of -85.22%. Use the drawdown chart below to compare losses from any high point for TER and AMAT.

Drawdown Indicators

	TER	AMAT	Difference
Max Drawdown Largest peak-to-trough decline	-97.30%	-85.22%	-12.08%
Max Drawdown (1Y) Largest decline over 1 year	-26.73%	-21.37%	-5.36%
Max Drawdown (3Y) Largest decline over 3 years	-58.18%	-49.88%	-8.30%
Max Drawdown (5Y) Largest decline over 5 years	-59.12%	-55.14%	-3.98%
Max Drawdown (10Y) Largest decline over 10 years	-59.12%	-55.14%	-3.98%
Current Drawdown Current decline from peak	-1.97%	0.00%	-1.97%
Average Drawdown Average peak-to-trough decline	-58.71%	-38.81%	-19.90%
Ulcer Index Depth and duration of drawdowns from previous peaks	7.28%	7.46%	-0.18%

Volatility

TER vs. AMAT - Volatility Comparison

Teradyne, Inc. (TER) has a higher volatility of 20.31% compared to Applied Materials, Inc. (AMAT) at 15.12%. This indicates that TER's price experiences larger fluctuations and is considered to be riskier than AMAT based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	TER	AMAT	Difference
Volatility (1M) Calculated over the trailing 1-month period	20.31%	15.12%	+5.19%
Volatility (6M) Calculated over the trailing 6-month period	50.09%	35.27%	+14.82%
Volatility (1Y) Calculated over the trailing 1-year period	64.87%	46.10%	+18.77%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	49.61%	43.57%	+6.04%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	44.96%	42.61%	+2.35%

Dividends

TER vs. AMAT - Dividend Comparison

TER's dividend yield for the trailing twelve months is around 0.12%, less than AMAT's 0.38% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
AMAT Applied Materials, Inc.	0.38%	0.69%	0.93%	0.75%	1.05%	0.60%	1.01%	1.36%	2.14%	0.78%	1.24%	2.14%
TER Teradyne, Inc.	0.12%	0.25%	0.38%	0.41%	0.50%	0.24%	0.33%	0.53%	1.15%	0.67%	0.94%	1.16%

Financials

TER vs. AMAT - Profitability Comparison

The chart below illustrates the profitability comparison between Teradyne, Inc. and Applied Materials, Inc. over time, highlighting three key metrics: Gross Profit Margin, Operating Margin, and Net Profit Margin.

TER - Gross Margin

Gross margin is calculated as gross profit divided by revenue. For the three months ending on Jun 2026, Teradyne, Inc. reported a gross profit of 780.95M and revenue of 1.28B. Therefore, the gross margin over that period was 60.9%.

AMAT - Gross Margin

Gross margin is calculated as gross profit divided by revenue. For the three months ending on Jun 2026, Applied Materials, Inc. reported a gross profit of 3.95B and revenue of 7.91B. Therefore, the gross margin over that period was 49.9%.

TER - Operating Margin

Operating margin is calculated as operating income divided by revenue. For the three months ending on Jun 2026, Teradyne, Inc. reported an operating income of 473.00M and revenue of 1.28B, resulting in an operating margin of 36.9%.

AMAT - Operating Margin

Operating margin is calculated as operating income divided by revenue. For the three months ending on Jun 2026, Applied Materials, Inc. reported an operating income of 2.52B and revenue of 7.91B, resulting in an operating margin of 31.9%.

TER - Net Margin

Net margin is calculated as net income divided by revenue. For the three months ending on Jun 2026, Teradyne, Inc. reported a net income of 398.91M and revenue of 1.28B, resulting in a net margin of 31.1%.

AMAT - Net Margin

Net margin is calculated as net income divided by revenue. For the three months ending on Jun 2026, Applied Materials, Inc. reported a net income of 2.81B and revenue of 7.91B, resulting in a net margin of 35.5%.

Frequently Asked Questions

Can I hold both TER and AMAT in my portfolio?

TER and AMAT have a correlation of 0.72, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, TER or AMAT?

TER has higher volatility (20.31%) compared to AMAT (15.12%). In terms of maximum drawdown, TER dropped -97.30% vs AMAT's -85.22%.

Which has better risk-adjusted returns?

TER currently has the higher Sharpe Ratio (6.28 vs 4.63), meaning it's delivered slightly more return per unit of risk over the trailing 12 months. However, this ranking shifts over time - use the Risk/Return Score above for a more comprehensive view that combines Sharpe, Sortino, and other measures used by quantitative funds.