WallStSmart

Onto Innovation Inc (ONTO)vsTeradyne Inc (TER)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Teradyne Inc generates 299% more annual revenue ($4.46B vs $1.12B). TER leads profitability with a 25.8% profit margin vs 11.8%. TER appears more attractively valued with a PEG of 0.68. TER earns a higher WallStSmart Score of 79/100 (B+).

ONTO

Strong Buy

66

out of 100

Grade: B-

Growth: 8.0Profit: 6.0Value: 5.0Quality: 7.5
Piotroski: 2/9Altman Z: 6.34

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

ONTO5 strengths · Avg: 9.2/10
Revenue GrowthGrowth
35.3%10/10

Revenue surging 35.3% year-over-year

EPS GrowthGrowth
75.4%10/10

Earnings expanding 75.4% YoY

Altman Z-ScoreHealth
6.3410/10

Safe zone — low bankruptcy risk

PEG RatioValuation
0.768/10

Growing faster than its price suggests

Operating MarginProfitability
23.0%8/10

Strong operational efficiency at 23.0%

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

ONTO3 concerns · Avg: 2.7/10
Return on EquityProfitability
6.9%3/10

ROE of 6.9% — below average capital efficiency

Piotroski F-ScoreQuality
2/93/10

Weak financial health signals

P/E RatioValuation
104.9x2/10

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 : ONTO

The strongest argument for ONTO centers on Revenue Growth, EPS Growth, Altman Z-Score. Revenue growth of 35.3% demonstrates continued momentum. PEG of 0.76 suggests the stock is reasonably priced for its growth.

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 : ONTO

The primary concerns for ONTO are Return on Equity, Piotroski F-Score, P/E Ratio. A P/E of 104.9x leaves little room for execution misses.

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

TER carries more volatility with a beta of 1.78 — expect wider price swings.

TER is growing revenue faster at 103.9% — sustainability is the question.

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

Monitor SEMICONDUCTOR EQUIPMENT & MATERIALS industry trends, competitive dynamics, and regulatory changes.

Bottom Line

TER scores higher overall (79/100 vs 66/100), backed by strong 25.8% margins and 103.9% revenue growth. Both earn "Strong Buy" and "Strong Buy" ratings respectively — the choice depends on your investment horizon and risk tolerance.

This analysis is generated from publicly available financial data. Not financial advice.

Onto Innovation Inc

TECHNOLOGY · SEMICONDUCTOR EQUIPMENT & MATERIALS · USA

Onto Innovation Inc. is dedicated to the design, development, manufacture and support of process control tools that perform macrodefect inspection and metrology, lithography systems, and process control analytical software worldwide. The company is headquartered in Wilmington, Massachusetts.

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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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