Teradyne (TER) vs. Analogic (ALOG) Financial Contrast

Teradyne (NYSE: TER) and Analogic (NASDAQ:ALOG) are both computer and technology companies, but which is the better stock? We will compare the two companies based on the strength of their valuation, earnings, dividends, risk, profitability, analyst recommendations and institutional ownership.

Profitability

This table compares Teradyne and Analogic’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Teradyne 11.97% 23.45% 15.38%
Analogic -1.13% 6.77% 5.75%

Analyst Recommendations

This is a breakdown of recent recommendations for Teradyne and Analogic, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Teradyne 0 6 8 0 2.57
Analogic 0 1 0 0 2.00

Teradyne currently has a consensus target price of $46.67, indicating a potential upside of 19.47%. Analogic has a consensus target price of $80.00, indicating a potential downside of 4.61%. Given Teradyne’s stronger consensus rating and higher possible upside, equities analysts plainly believe Teradyne is more favorable than Analogic.

Insider & Institutional Ownership

96.4% of Teradyne shares are held by institutional investors. Comparatively, 94.5% of Analogic shares are held by institutional investors. 0.5% of Teradyne shares are held by company insiders. Comparatively, 1.4% of Analogic shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Valuation and Earnings

This table compares Teradyne and Analogic’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Teradyne $2.14 billion 3.57 $257.69 million $2.34 16.69
Analogic $486.37 million 2.16 -$74.23 million $1.72 48.76

Teradyne has higher revenue and earnings than Analogic. Teradyne is trading at a lower price-to-earnings ratio than Analogic, indicating that it is currently the more affordable of the two stocks.

Dividends

Teradyne pays an annual dividend of $0.36 per share and has a dividend yield of 0.9%. Analogic pays an annual dividend of $0.40 per share and has a dividend yield of 0.5%. Teradyne pays out 15.4% of its earnings in the form of a dividend. Analogic pays out 23.3% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Teradyne has increased its dividend for 3 consecutive years. Teradyne is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Risk & Volatility

Teradyne has a beta of 1.2, suggesting that its stock price is 20% more volatile than the S&P 500. Comparatively, Analogic has a beta of 0.64, suggesting that its stock price is 36% less volatile than the S&P 500.

Summary

Teradyne beats Analogic on 15 of the 17 factors compared between the two stocks.

Teradyne Company Profile

Teradyne, Inc. designs, develops, manufactures, sells, and supports automatic test equipment worldwide. Its Semiconductor Test segment offers semiconductor test products and services for wafer level and device package testing in automotive, industrial, communications, consumer, computer and electronic game, and other applications. This segment offers FLEX test platform systems; J750 test system to address the highest volume semiconductor devices; Magnum platform that tests memory devices, such as flash memory and DRAM; and ETS platform for use by semiconductor manufacturers, and assembly and test subcontractors in the analog/mixed signal markets. This segment serves integrated device manufacturers that integrate the fabrication of silicon wafers into their business; fabless companies that outsource the manufacturing of silicon wafers; foundries; and outsourced semiconductor assembly and test providers. The company's System Test segment offers defense/aerospace test instrumentation and systems; storage test systems; and circuit-board test and inspection systems. Its Industrial Automation segment provides collaborative robots for manufacturing and light industrial customers. The company's Wireless Test segment provides test solutions for use in the development and manufacture of wireless devices, smart phones, tablets, notebooks, laptops, peripherals, and Internet-of-Things (IoT) devices under the LitePoint brand name. This segment offers IQxel products for Wi-Fi and other standards; IQxstream solution for testing GSM, EDGE, CDMA2000, TD-SCDMA, WCDMA, HSPA+, LTE-FDD, TD_LTE, and LTE-A technologies; modular wireless test instruments for design verification test and production testing of wireless components; lab-in-a-box zSeries solution for design verification of RF power amplifier and smart device RF front end modules; and test software for wireless chipsets. The company was founded in 1960 and is headquartered in North Reading, Massachusetts.

Analogic Company Profile

Analogic Corporation designs, manufactures, and sells medical imaging systems, ultrasound and security systems, and subsystems to original equipment manufacturers (OEMs) and end users primarily for the medical and airport security markets worldwide. It operates in three segments: Medical Imaging, Ultrasound, and Security and Detection. The Medical Imaging segment offers computed tomography (CT) detector systems, data acquisition systems, data management systems, and integrated CT systems; magnetic resonance imaging products, including gradient and radio frequency amplifiers; and digital mammography products, such as detector plates, as well as motion control devices for use in computer-controlled automation systems primarily for the semiconductor, food and beverage, and laboratory automation markets. This segment sells its products through multinational OEMs. The Ultrasound segment designs and manufactures medical ultrasound systems under the BK Ultrasound brand for use in urology, surgery, point-of-care, anesthesia, and general imaging applications. It also provides its products for cardiology, radiology, OB/GYN, surgery, and interventional radiology applications, as well as offers various transducers. This segment sells its products through its direct sales force, as well as through a network of independent sales representatives and distributors. The Security and Detection segment designs and manufactures automated threat detection systems for aviation baggage inspection applications. It provides checked baggage, checkpoint CT, and high speed in-line baggage handling systems; and rapid DNA analysis systems to analyze multiple human DNA samples. This segment sells its products primarily through multinational partners. The company was founded in 1967 and is headquartered in Peabody, Massachusetts.

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