Star Group (NYSE:SGU – Get Free Report) and Teradyne (NASDAQ:TER – Get Free Report) are both computer and technology companies, but which is the better investment? We will contrast the two companies based on the strength of their dividends, institutional ownership, earnings, valuation, profitability, analyst recommendations and risk.
Earnings and Valuation
This table compares Star Group and Teradyne”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Star Group | $1.78 billion | 0.24 | $73.50 million | $2.23 | 5.82 |
| Teradyne | $3.19 billion | 18.35 | $554.05 million | $5.40 | 69.27 |
Analyst Recommendations
This is a breakdown of current ratings and recommmendations for Star Group and Teradyne, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Star Group | 0 | 0 | 1 | 0 | 3.00 |
| Teradyne | 0 | 4 | 11 | 1 | 2.81 |
Teradyne has a consensus target price of $394.53, suggesting a potential upside of 5.48%. Given Teradyne’s higher possible upside, analysts plainly believe Teradyne is more favorable than Star Group.
Profitability
This table compares Star Group and Teradyne’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Star Group | 5.31% | 28.64% | 9.59% |
| Teradyne | 22.55% | 31.79% | 22.36% |
Dividends
Star Group pays an annual dividend of $0.79 per share and has a dividend yield of 6.1%. Teradyne pays an annual dividend of $0.52 per share and has a dividend yield of 0.1%. Star Group pays out 35.4% of its earnings in the form of a dividend. Teradyne pays out 9.6% 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. Star Group has raised its dividend for 13 consecutive years and Teradyne has raised its dividend for 1 consecutive years. Star Group is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Risk & Volatility
Star Group has a beta of 0.33, suggesting that its stock price is 67% less volatile than the S&P 500. Comparatively, Teradyne has a beta of 1.74, suggesting that its stock price is 74% more volatile than the S&P 500.
Institutional and Insider Ownership
40.4% of Star Group shares are owned by institutional investors. Comparatively, 99.8% of Teradyne shares are owned by institutional investors. 20.4% of Star Group shares are owned by company insiders. Comparatively, 0.2% of Teradyne shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.
Summary
Teradyne beats Star Group on 14 of the 18 factors compared between the two stocks.
About Star Group
Star Group, L.P., together with its subsidiaries, provides home heating oil and propane products and services to residential and commercial customers in the United States. It offers gasoline and diesel fuel; and installs, maintain, and repairs heating and air conditioning equipment. As of September 30, 2023, the company served approximately 402,200 full service residential and commercial home heating oil and propane customers and 52,400 customers on a delivery only basis. It also sells gasoline and diesel fuel to approximately 26,600 customers. The company was formerly known as Star Gas Partners, L.P. and changed its name to Star Group, L.P. in October 2017. Star Group, L.P. was incorporated in 1995 and is based in Stamford, Connecticut.
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.
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