Teradyne (NYSE:TER) and Reliability (OTCMKTS:RLBY) are both computer and technology companies, but which is the superior stock? We will contrast the two companies based on the strength of their analyst recommendations, risk, dividends, profitability, valuation, earnings and institutional ownership.
Risk and Volatility
Teradyne has a beta of 1.25, meaning that its stock price is 25% more volatile than the S&P 500. Comparatively, Reliability has a beta of 0.61, meaning that its stock price is 39% less volatile than the S&P 500.
Teradyne pays an annual dividend of $0.36 per share and has a dividend yield of 1.1%. Reliability does not pay a dividend. Teradyne pays out 15.4% of its earnings in the form of a dividend. Teradyne has increased its dividend for 3 consecutive years.
Insider and Institutional Ownership
0.0% of Reliability shares are held by institutional investors. 0.5% of Teradyne shares are held by company insiders. Comparatively, 10.1% of Reliability shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.
This is a breakdown of current recommendations for Teradyne and Reliability, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Teradyne currently has a consensus target price of $42.67, indicating a potential upside of 30.84%. Given Teradyne’s higher probable upside, analysts clearly believe Teradyne is more favorable than Reliability.
Earnings & Valuation
This table compares Teradyne and Reliability’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Teradyne||$2.14 billion||2.74||$257.69 million||$2.34||13.94|
Teradyne has higher revenue and earnings than Reliability.
This table compares Teradyne and Reliability’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Teradyne beats Reliability on 10 of the 13 factors compared between the two stocks.
Teradyne, Inc. designs, develops, manufactures, sells, and supports automatic test equipment worldwide. Its Semiconductor Test segment offers semiconductor test products and services for wafer level and device package testing in automotive, industrial, communications, consumer, computer and electronic game, and other applications. This segment offers FLEX test platform systems; J750 test system to address the highest volume semiconductor devices; Magnum platform that tests memory devices, such as flash memory and DRAM; and ETS platform for use by semiconductor manufacturers, and assembly and test subcontractors in the analog/mixed signal markets. This segment 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 outsourced semiconductor assembly and test providers. The company's System Test segment offers defense/aerospace test instrumentation and systems; storage test systems; and circuit-board test and inspection systems. Its Industrial Automation segment provides collaborative robots for manufacturing and light industrial customers. The company's Wireless Test segment provides test solutions for use in the development and manufacture of wireless devices, smart phones, tablets, notebooks, laptops, peripherals, and Internet-of-Things (IoT) devices under the LitePoint brand name. This segment offers IQxel products for Wi-Fi and other standards; IQxstream solution for testing GSM, EDGE, CDMA2000, TD-SCDMA, WCDMA, HSPA+, LTE-FDD, TD_LTE, and LTE-A technologies; modular wireless test instruments for design verification test and production testing of wireless components; lab-in-a-box zSeries solution for design verification of RF power amplifier and smart device RF front end modules; and test software for wireless chipsets. The company was founded in 1960 and is headquartered in North Reading, Massachusetts.
Reliability Incorporated does not have significant operations. It intends to acquire, or identify a merger partner or other business combination. Previously, the company was involved in the design, manufacture, marketing, and support of high performance equipment used to test and condition integrated circuits. Reliability Incorporated was incorporated in 1953 and is based in Old Greenwich, Connecticut.
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