WallStSmart

IPG Photonics Corporation (IPGP)vsTeradyne Inc (TER)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Teradyne Inc generates 218% more annual revenue ($3.19B vs $1.00B). TER leads profitability with a 17.4% profit margin vs 3.1%. TER appears more attractively valued with a PEG of 1.61. TER earns a higher WallStSmart Score of 70/100 (B).

IPGP

Buy

51

out of 100

Grade: C-

Growth: 6.7Profit: 4.0Value: 4.7Quality: 7.8
Piotroski: 4/9Altman Z: 6.90

TER

Strong Buy

70

out of 100

Grade: B

Growth: 10.0Profit: 8.5Value: 4.7Quality: 6.8
Piotroski: 4/9
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

IPGPSignificantly Overvalued (-224.7%)

Margin of Safety

-224.7%

Fair Value

$34.16

Current Price

$127.01

$92.85 premium

UndervaluedFair: $34.16Overvalued
TERSignificantly Overvalued (-98.5%)

Margin of Safety

-98.5%

Fair Value

$161.93

Current Price

$323.36

$161.43 premium

UndervaluedFair: $161.93Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

IPGP4 strengths · Avg: 9.0/10
EPS GrowthGrowth
69.3%10/10

Earnings expanding 69.3% YoY

Altman Z-ScoreHealth
6.9010/10

Safe zone — low bankruptcy risk

Price/BookValuation
2.5x8/10

Reasonable price relative to book value

Revenue GrowthGrowth
17.1%8/10

17.1% revenue growth

TER5 strengths · Avg: 9.6/10
Operating MarginProfitability
30.3%10/10

Strong operational efficiency at 30.3%

Revenue GrowthGrowth
43.9%10/10

Revenue surging 43.9% year-over-year

EPS GrowthGrowth
81.4%10/10

Earnings expanding 81.4% YoY

Market CapQuality
$50.12B9/10

Large-cap with strong market position

Debt/EquityHealth
0.129/10

Conservative balance sheet, low leverage

Areas to Watch

IPGP4 concerns · Avg: 3.3/10
PEG RatioValuation
1.834/10

Expensive relative to growth rate

Return on EquityProfitability
1.5%3/10

ROE of 1.5% — below average capital efficiency

Profit MarginProfitability
3.1%3/10

3.1% margin — thin

Operating MarginProfitability
2.1%3/10

Operating margin of 2.1%

TER3 concerns · Avg: 3.3/10
PEG RatioValuation
1.614/10

Expensive relative to growth rate

Price/BookValuation
18.1x4/10

Trading at 18.1x book value

P/E RatioValuation
92.5x2/10

Premium valuation, high expectations priced in

Comparative Analysis Report

WallStSmart Research

Bull Case : IPGP

The strongest argument for IPGP centers on EPS Growth, Altman Z-Score, Price/Book. Revenue growth of 17.1% demonstrates continued momentum.

Bull Case : TER

The strongest argument for TER centers on Operating Margin, Revenue Growth, EPS Growth. Profitability is solid with margins at 17.4% and operating margin at 30.3%. Revenue growth of 43.9% demonstrates continued momentum.

Bear Case : IPGP

The primary concerns for IPGP are PEG Ratio, Return on Equity, Profit Margin. A P/E of 172.2x leaves little room for execution misses. Thin 3.1% margins leave little buffer for downturns.

Bear Case : TER

The primary concerns for TER are PEG Ratio, Price/Book, P/E Ratio. A P/E of 92.5x leaves little room for execution misses.

Key Dynamics to Monitor

TER carries more volatility with a beta of 1.80 — expect wider price swings.

TER is growing revenue faster at 43.9% — sustainability is the question.

TER generates stronger free cash flow (219M), providing more financial flexibility.

Monitor SEMICONDUCTOR EQUIPMENT & MATERIALS industry trends, competitive dynamics, and regulatory changes.

Bottom Line

TER scores higher overall (70/100 vs 51/100), backed by strong 17.4% margins and 43.9% revenue growth. Both earn "Strong Buy" and "Buy" ratings respectively — the choice depends on your investment horizon and risk tolerance.

This analysis is generated from publicly available financial data. Not financial advice.

IPG Photonics Corporation

TECHNOLOGY · SEMICONDUCTOR EQUIPMENT & MATERIALS · USA

IPG Photonics is a manufacturer of fiber lasers.

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Teradyne Inc

TECHNOLOGY · SEMICONDUCTOR EQUIPMENT & MATERIALS · USA

Teradyne, Inc. is an American automatic test equipment (ATE) designer and manufacturer based in North Reading, Massachusetts.

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