Analyzing Casio Computer (OTCMKTS:CSIOY) & Teradyne (NASDAQ:TER)

Casio Computer (OTCMKTS:CSIOY) and Teradyne (NASDAQ:TER) are both computer and technology companies, but which is the superior stock? We will compare the two businesses based on the strength of their institutional ownership, risk, earnings, dividends, valuation, profitability and analyst recommendations.

Analyst Recommendations

This is a summary of current ratings and recommmendations for Casio Computer and Teradyne, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Casio Computer	0	0	0	0	0.00
Teradyne	0	4	13	2	2.89

Teradyne has a consensus target price of $185.75, suggesting a potential downside of 5.54%. Given Teradyne’s stronger consensus rating and higher possible upside, analysts clearly believe Teradyne is more favorable than Casio Computer.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Casio Computer	4.89%	4.10%	2.69%
Teradyne	15.49%	18.04%	13.31%

Earnings and Valuation

This table compares Casio Computer and Teradyne”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Casio Computer	$1.72 billion	1.14	$53.22 million	$3.71	22.20
Teradyne	$2.82 billion	10.92	$542.37 million	$2.75	71.50

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

Dividends

Casio Computer pays an annual dividend of $2.19 per share and has a dividend yield of 2.7%. Teradyne pays an annual dividend of $0.48 per share and has a dividend yield of 0.2%. Casio Computer pays out 59.0% of its earnings in the form of a dividend. Teradyne pays out 17.5% 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 raised its dividend for 1 consecutive years.

Insider & 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 large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Volatility and Risk

Casio Computer has a beta of 0.19, meaning that its share price is 81% less volatile than the S&P 500. Comparatively, Teradyne has a beta of 1.85, meaning that its share price is 85% more volatile than the S&P 500.

Summary

Teradyne beats Casio Computer on 16 of the 18 factors compared between the two stocks.

About Casio Computer

Casio Computer Co.,Ltd. develops, produces, and sells consumer, system equipment, and other products. The company operates in Timepieces, Consumer, System Equipment, and Other segments. It offers timepieces, electronic dictionaries, calculators, label printers, electronic musical instruments, handheld terminals, cash registers, management support systems, data projectors, formed parts, and molds products. The company was incorporated in 1946 and is headquartered in Tokyo, Japan.

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.