Teradyne (NASDAQ:TER) and Osram Licht (OTCMKTS:OSAGF) Head-To-Head Review

Teradyne (NASDAQ:TER) and Osram Licht (OTCMKTS:OSAGF) are both large-cap computer and technology companies, but which is the superior stock? We will contrast the two companies based on the strength of their earnings, profitability, analyst recommendations, dividends, risk, valuation and institutional ownership.

Insider and Institutional Ownership

99.8% of Teradyne shares are held by institutional investors. 0.2% of Teradyne shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Risk and Volatility

Teradyne has a beta of 1.74, indicating that its share price is 74% more volatile than the S&P 500. Comparatively, Osram Licht has a beta of 0.14, indicating that its share price is 86% less volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Teradyne	22.55%	31.79%	22.36%
Osram Licht	-6.18%	0.79%	0.11%

Valuation & Earnings

This table compares Teradyne and Osram Licht”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Teradyne	$3.19 billion	16.38	$554.05 million	$5.40	61.81
Osram Licht	$3.76 billion	16.53	-$147.08 million	($2.39)	-26.04

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

Analyst Recommendations

This is a breakdown of recent recommendations for Teradyne and Osram Licht, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Teradyne	0	3	12	1	2.88
Osram Licht	0	0	0	0	0.00

Teradyne presently has a consensus price target of $394.53, suggesting a potential upside of 18.21%. Given Teradyne’s stronger consensus rating and higher possible upside, research analysts plainly believe Teradyne is more favorable than Osram Licht.

Summary

Teradyne beats Osram Licht on 13 of the 15 factors compared between the two stocks.

About Teradyne

Teradyne, Inc. designs, develops, manufactures, and sells automated test systems and robotics products worldwide. It operates through four segments; Semiconductor Test, System Test, Robotics, and Wireless Test. The Semiconductor Test segment offers products and services for wafer level and device package testing of semiconductor devices in automotive, industrial, communications, consumer, smartphones, cloud, computer and electronic game, and other applications. This segment also provides FLEX test platform systems; J750 test system to address the volume semiconductor devices, including microcontrollers; Magnum platform that tests memory devices, such as flash memory and DRAM; and ETS platform for semiconductor manufacturers, and assembly and test subcontractors in the analog/mixed signal markets. It 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 semiconductor assembly and test providers. The System Test segment offers defense/aerospace test instrumentation and systems; storage and system level test systems; and circuit-board test and inspection systems. The Wireless Test segment provides wireless test solutions for silicon validation, wireless module manufacturing, and wireless end device manufacturing under the LitePoint brand. This segment also offers IQxel-MX and IQxel-MW7G series products for edge measurement performance in the manufacturing of connectivity products; IQxstream-5G and IQgig-5G family products to support 4G and 5G technologies; and IQgig-UWB+ for certification and manufacturing test support for ultra wideband products. The Robotics segment provides collaborative robotic arms, autonomous mobile robots, and advanced robotic control software for manufacturing, logistics, and industrial customers. The company was incorporated in 1960 and is headquartered in North Reading, Massachusetts.

About Osram Licht

OSRAM Licht AG provides various lighting products and solutions worldwide. It operates through three segments: Opto Semiconductors, Automotive, and Digital. The company was formerly known as Kyros A AG and changed its name to OSRAM Licht AG in November 2012. OSRAM Licht AG was incorporated in 2012 and is headquartered in Munich, Germany. OSRAM Licht AG operates as a subsidiary of ams-OSRAM AG.