WallStSmart

Onto Innovation Inc (ONTO)vsTeradyne Inc (TER)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Teradyne Inc generates 217% more annual revenue ($3.19B vs $1.01B). TER leads profitability with a 17.4% profit margin vs 13.6%. ONTO appears more attractively valued with a PEG of 1.13. TER earns a higher WallStSmart Score of 70/100 (B).

ONTO

Hold

46

out of 100

Grade: D+

Growth: 3.3Profit: 6.0Value: 4.7Quality: 6.0
Piotroski: 2/9

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

ONTOSignificantly Overvalued (-1072.5%)

Margin of Safety

-1072.5%

Fair Value

$18.97

Current Price

$221.04

$202.07 premium

UndervaluedFair: $18.97Overvalued
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

ONTO1 strengths · Avg: 8.0/10
Operating MarginProfitability
20.9%8/10

Strong operational efficiency at 20.9%

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

ONTO4 concerns · Avg: 3.0/10
Revenue GrowthGrowth
1.1%4/10

1.1% revenue growth

Return on EquityProfitability
6.8%3/10

ROE of 6.8% — below average capital efficiency

Piotroski F-ScoreQuality
2/93/10

Weak financial health signals

P/E RatioValuation
78.7x2/10

Premium valuation, high expectations priced in

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 : ONTO

The strongest argument for ONTO centers on Operating Margin. PEG of 1.13 suggests the stock is reasonably priced for its growth.

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 : ONTO

The primary concerns for ONTO are Revenue Growth, Return on Equity, Piotroski F-Score. A P/E of 78.7x leaves little room for execution misses.

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

ONTO profiles as a value stock while TER is a growth play — different risk/reward profiles.

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.

Bottom Line

TER scores higher overall (70/100 vs 46/100), backed by strong 17.4% margins and 43.9% revenue growth. Both earn "Strong Buy" and "Hold" ratings respectively — the choice depends on your investment horizon and risk tolerance.

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

Onto Innovation Inc

TECHNOLOGY · SEMICONDUCTOR EQUIPMENT & MATERIALS · USA

Onto Innovation Inc. is dedicated to the design, development, manufacture and support of process control tools that perform macrodefect inspection and metrology, lithography systems, and process control analytical software worldwide. The company is headquartered in Wilmington, Massachusetts.

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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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