Onto Innovation Inc (ONTO)vsTeradyne Inc (TER)
ONTO
Onto Innovation Inc
$221.04
+0.72%
TECHNOLOGY · Cap: $10.91B
TER
Teradyne Inc
$323.36
+1.01%
TECHNOLOGY · Cap: $50.12B
Smart Verdict
WallStSmart Research — data-driven comparison
Teradyne Inc generates 217% more annual revenue ($3.19B vs $1.01B). TER leads profitability with a 17.4% profit margin vs 13.6%. ONTO appears more attractively valued with a PEG of 1.13. TER earns a higher WallStSmart Score of 70/100 (B).
ONTO
Hold46
out of 100
Grade: D+
TER
Strong Buy70
out of 100
Grade: B
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-1072.5%
Fair Value
$18.97
Current Price
$221.04
$202.07 premium
Margin of Safety
-98.5%
Fair Value
$161.93
Current Price
$323.36
$161.43 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Strong operational efficiency at 20.9%
Strong operational efficiency at 30.3%
Revenue surging 43.9% year-over-year
Earnings expanding 81.4% YoY
Large-cap with strong market position
Conservative balance sheet, low leverage
Areas to Watch
1.1% revenue growth
ROE of 6.8% — below average capital efficiency
Weak financial health signals
Premium valuation, high expectations priced in
Expensive relative to growth rate
Trading at 18.1x book value
Premium valuation, high expectations priced in
Comparative Analysis Report
WallStSmart ResearchBull Case : ONTO
The strongest argument for ONTO centers on Operating Margin. PEG of 1.13 suggests the stock is reasonably priced for its growth.
Bull Case : TER
The strongest argument for TER centers on Operating Margin, Revenue Growth, EPS Growth. Profitability is solid with margins at 17.4% and operating margin at 30.3%. Revenue growth of 43.9% demonstrates continued momentum.
Bear Case : ONTO
The primary concerns for ONTO are Revenue Growth, Return on Equity, Piotroski F-Score. A P/E of 78.7x leaves little room for execution misses.
Bear Case : TER
The primary concerns for TER are PEG Ratio, Price/Book, P/E Ratio. A P/E of 92.5x leaves little room for execution misses.
Key Dynamics to Monitor
ONTO profiles as a value stock while TER is a growth play — different risk/reward profiles.
TER carries more volatility with a beta of 1.80 — expect wider price swings.
TER is growing revenue faster at 43.9% — sustainability is the question.
TER generates stronger free cash flow (219M), providing more financial flexibility.
Bottom Line
TER scores higher overall (70/100 vs 46/100), backed by strong 17.4% margins and 43.9% revenue growth. Both earn "Strong Buy" and "Hold" 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.
Visit Website →Teradyne Inc
TECHNOLOGY · SEMICONDUCTOR EQUIPMENT & MATERIALS · USA
Teradyne, Inc. is an American automatic test equipment (ATE) designer and manufacturer based in North Reading, Massachusetts.
Visit Website →Compare with Other SEMICONDUCTOR EQUIPMENT & MATERIALS Stocks
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