How Does Teradyne Stock Compare With Peers?
With Teradyne surging 20% in a Day, it makes sense to re-evaluate vs its peers. Consistently assessing alternatives is core to a sound investment approach. Here is how Teradyne (TER) stock stacks up against its peers in size, valuation, growth and margin.
- TER’s operating margin of 19.2% is strong, lower than most peers – trailing KLAC (41.2%).
- TER’s revenue growth of 4.6% in the last 12 months is low, lagging KEYS, FORM, LRCX, AMAT, KLAC.
- TER’s stock gained 54.3% over the past year and trades at a PE of 59.3, though peers like LRCX, KLAC delivered stronger returns.
As a quick background, Teradyne provides test solutions for semiconductor, system, industrial automation, and wireless device development and manufacturing, including smartphones, tablets, laptops, and IoT devices.
A single stock can be risky, but there is a huge value to a broader, diversified approach we take with the Trefis High Quality Portfolio. Trefis works with Empirical Asset Management — a Boston area wealth manager — whose asset allocation strategies yielded positive returns during the 2008-09 period when the S&P lost more than 40%. Empirical has incorporated the Trefis HQ Portfolio in this asset allocation framework to provide clients with higher returns while taking on lower levels of risk versus the benchmark index.
| TER | KEYS | FORM | LRCX | AMAT | KLAC | |
|---|---|---|---|---|---|---|
| Market Cap ($ Bil) | 27.8 | 29.3 | 3.7 | 203.2 | 188.1 | 163.1 |
| Revenue ($ Bil) | 2.8 | 5.2 | 0.8 | 19.6 | 28.6 | 12.2 |
| PE Ratio | 59.3 | 53.9 | 83.8 | 35.0 | 27.5 | 40.2 |
| LTM Revenue Growth | 4.6% | 4.8% | 8.3% | 25.7% | 6.6% | 23.9% |
| LTM Operating Margin | 19.2% | 17.0% | 5.4% | 33.0% | 30.1% | 41.2% |
| LTM FCF Margin | 20.1% | 27.0% | 0.5% | 28.3% | 20.4% | 30.8% |
| 12M Market Return | 54.3% | 9.8% | 5.6% | 107.3% | 25.3% | 79.1% |
Why does this matter? TER just went up 26.4% in a month – peer comparison puts stock performance, valuation, and financials in context – highlighting whether it is truly outperforming, lagging behind, and above all – can this continue? Read Buy or Sell TER Stock to see if Teradyne holds up as a quality investment. Furthermore, there is always a risk of fall after a strong rally – see how the stock has dipped and recovered in the past through TER Dip Buyer Analysis lens.
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Revenue Growth Comparison
| LTM | 2025 | 2024 | 2023 | 2022 | |
|---|---|---|---|---|---|
| TER | 4.6% | – | 5.4% | -15.2% | -14.8% |
| KEYS | 4.8% | – | -8.9% | 0.8% | 9.7% |
| FORM | 8.3% | – | 15.2% | -11.3% | -2.8% |
| LRCX | 25.7% | 23.7% | -14.5% | 1.2% | |
| AMAT | 6.6% | – | 2.5% | 2.8% | 11.8% |
| KLAC | 23.9% | 23.9% | -6.5% | 13.9% |
Operating Margin Comparison
| LTM | 2025 | 2024 | 2023 | 2022 | |
|---|---|---|---|---|---|
| TER | 19.2% | – | 19.6% | 19.5% | 26.9% |
| KEYS | 17.0% | – | 16.7% | 24.9% | 24.6% |
| FORM | 5.4% | – | 5.8% | 1.5% | 7.3% |
| LRCX | 33.0% | 32.0% | 28.7% | 29.9% | |
| AMAT | 30.1% | – | 28.9% | 28.9% | 30.2% |
| KLAC | 41.2% | 41.2% | 37.1% | 38.1% |
PE Ratio Comparison
| LTM | 2025 | 2024 | 2023 | 2022 | |
|---|---|---|---|---|---|
| TER | 59.3 | – | 36.9 | 37.3 | 19.3 |
| KEYS | 53.9 | – | 45.5 | 26.8 | 27.4 |
| FORM | 83.8 | – | 48.9 | 39.2 | 34.0 |
| LRCX | 35.0 | 17.3 | 26.9 | 12.6 | |
| AMAT | 27.5 | – | 18.7 | 19.9 | 13.0 |
| KLAC | 40.2 | 20.6 | 28.5 | 15.5 |
While peer comparison is critical, the Trefis High Quality (HQ) Portfolio, with a collection of 30 stocks, has a track record of comfortably outperforming its benchmark that includes all 3 — the S&P 500, S&P mid-cap, and Russell 2000 indices. Why is that? As a group, HQ Portfolio stocks provided better returns with less risk versus the benchmark index; less of a roller-coaster ride, as evident in HQ Portfolio performance metrics.