Reviewing Teradyne (NASDAQ:TER) & Spectris (OTCMKTS:SEPJY)

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

Profitability

This table compares Teradyne and Spectris’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Teradyne	16.59%	18.16%	13.80%
Spectris	N/A	N/A	N/A

Dividends

Teradyne pays an annual dividend of $0.48 per share and has a dividend yield of 0.4%. Spectris pays an annual dividend of $0.63 per share and has a dividend yield of 2.5%. Teradyne pays out 16.6% of its earnings in the form of a dividend. Teradyne has increased its dividend for 1 consecutive years.

Risk and Volatility

Teradyne has a beta of 1.72, meaning that its share price is 72% more volatile than the S&P 500. Comparatively, Spectris has a beta of 0.3, meaning that its share price is 70% less volatile than the S&P 500.

Institutional & Insider 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 stock will outperform the market over the long term.

Valuation & Earnings

This table compares Teradyne and Spectris”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Teradyne	$2.82 billion	6.06	$542.37 million	$2.89	37.19
Spectris	$1.66 billion	3.08	$298.52 million	N/A	N/A

Teradyne has higher revenue and earnings than Spectris.

Analyst Recommendations

This is a summary of recent recommendations and price targets for Teradyne and Spectris, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Teradyne	2	5	10	1	2.56
Spectris	0	0	1	0	3.00

Teradyne presently has a consensus price target of $114.4375, indicating a potential upside of 6.48%. Given Teradyne’s higher possible upside, research analysts clearly believe Teradyne is more favorable than Spectris.

Summary

Teradyne beats Spectris on 13 of the 16 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 Spectris

Spectris plc provides precision measurement solutions worldwide. It operates through Spectris Scientific, Spectris Dynamics, and Other segments. The Spectris Scientific segment provides advanced sensors and instruments used to measure, analyze, and characterize materials; and monitor ultra-clean manufacturing environments. Spectris Dynamics segment offers differentiated sensing, data acquisition, analysis modelling, and simulation solutions for product development and enhance product performance. The Other segment operates high-value precision in-line sensing and monitoring businesses. It serves life sciences/pharmaceuticals, technology-led industrials, automotive, electronics and semiconductor, academic research, and other markets, as well as metals, minerals, and mining. The company was formerly known as Fairey Group plc and changed its name to Spectris plc in May 2001. Spectris plc was incorporated in 1986 and is based in London, the United Kingdom.