For the past year, TER and AMAT have traded very closely to each other. Now AMAT is trading at 77 while TER trades at 59.
Both TER and AMAT are leaders in their fields. However, TER is expected to make consiedrably more than AMAT in the next 12 months. TER is expected to amke 84 cents in the next quarter while AMAT is expected to make 75 cents. Moreover, TER has a wildcard in its software businesses. These can payoff big if they are successful. Or perhaps, TER will spin these companies off in the next year or two.
Moreover the megatrends favor TER. As the complexity and variety of chips increases, the testing requirements will grow much faster than wafer fabrication equipment (AMAT). Besides, AMAT has become so big that very high growth rates become increasingly difficult.
IMHO, if AMAT is trading at $77, TER should be trading at $85. As time passes, I would expect TER's premium over AMAT to increase.
I was talking about earnings per share. Thus, size is normalized out. Why do you think that I only mention earnings per share for the next quarter? And maybe you should take a close at a one year chart for TER and AMAT.