Teradyne Inc (TER)vsWaters Corporation (WAT)
TER
Teradyne Inc
$323.36
+1.01%
TECHNOLOGY · Cap: $50.12B
WAT
Waters Corporation
$302.32
+0.13%
HEALTHCARE · Cap: $29.66B
Smart Verdict
WallStSmart Research — data-driven comparison
Teradyne Inc generates 1% more annual revenue ($3.19B vs $3.17B). WAT leads profitability with a 20.3% profit margin vs 17.4%. WAT appears more attractively valued with a PEG of 1.25. TER earns a higher WallStSmart Score of 70/100 (B).
TER
Strong Buy70
out of 100
Grade: B
WAT
Buy60
out of 100
Grade: C
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-98.5%
Fair Value
$161.93
Current Price
$323.36
$161.43 premium
Margin of Safety
-349.9%
Fair Value
$73.17
Current Price
$302.32
$229.15 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
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
Strong operational efficiency at 33.8%
Safe zone — low bankruptcy risk
Every $100 of equity generates 29 in profit
Keeps 20 of every $100 in revenue as profit
Areas to Watch
Expensive relative to growth rate
Trading at 18.1x book value
Premium valuation, high expectations priced in
Moderate valuation
Earnings declined 3.1%
Comparative Analysis Report
WallStSmart ResearchBull 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.
Bull Case : WAT
The strongest argument for WAT centers on Operating Margin, Altman Z-Score, Return on Equity. Profitability is solid with margins at 20.3% and operating margin at 33.8%. PEG of 1.25 suggests the stock is reasonably priced for its growth.
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.
Bear Case : WAT
The primary concerns for WAT are P/E Ratio, EPS Growth.
Key Dynamics to Monitor
TER profiles as a growth stock while WAT is a mature 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 60/100), backed by strong 17.4% margins and 43.9% revenue growth. Both earn "Strong Buy" and "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.
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 →Waters Corporation
HEALTHCARE · DIAGNOSTICS & RESEARCH · USA
Waters Corporation is a publicly traded Analytical Laboratory instrument and software company headquartered in Milford, Massachusetts.
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