Comprehensive Stock Comparison
Compare Onto Innovation Inc. (ONTO) vs Teradyne, Inc. (TER) Stock
Analyze side-by-side fundamentals, valuation, growth, and profitability to decide which stock is the better buy.
Selected Stocks
Add up to 10 tickers. Use presets or search to get started.
Quick Verdict
| Category | Winner | Why |
|---|---|---|
| Growth | ONTO | 21.0% revenue growth vs TER's 13.1% |
| Value | ONTO | Lower P/E (43.4x vs 50.3x) |
| Quality / Margins | ONTO | 17.5% net margin vs TER's 17.4% |
| Stability / Safety | TER | Beta 1.90 vs ONTO's 2.24 |
| Dividends | TER | 0.2% yield; 4-year raise streak; ONTO pays no meaningful dividend |
| Momentum (1Y) | TER | +191.8% vs ONTO's +48.2% |
| Efficiency (ROA) | TER | 13.3% ROA vs ONTO's 8.0%, ROIC 19.8% vs 8.6% |
Who Each Stock Is For
Income & stability
Growth exposure
Long-term compounding (10Y)
Sleep-well-at-night portfolio
Defensive / Recession hedge
Business Model
What each company does and how it makes money
Onto Innovation is a semiconductor equipment company that makes process control tools for defect inspection, optical metrology, and lithography systems used in chip manufacturing. It generates revenue primarily from selling these capital equipment systems — along with software licenses and spare parts — to semiconductor manufacturers and advanced packaging facilities. The company's competitive advantage lies in its integrated portfolio of inspection, metrology, and lithography technologies that help chipmakers improve yields and process control across multiple manufacturing steps.
Teradyne is a leading manufacturer of automated test equipment used to verify semiconductor chips and electronic systems before they reach customers. It generates revenue primarily from semiconductor test systems (~70% of sales) and industrial automation robots (~20%), with the remainder from system test and wireless test equipment. The company's moat comes from its deep expertise in complex test methodologies and long-standing relationships with major semiconductor manufacturers who rely on its equipment for quality assurance.
Revenue Breakdown by Segment
How each company's revenue is distributed across its business units
Financial Metrics Comparison
Side-by-side fundamentals across 2 stocks. BestLagging
Financial Scorecard
TER leads in 2 of 6 categories (Financial Metrics, Total Returns). ONTO leads in 1 (Valuation Metrics). 2 tied.
Financial Metrics (TTM)
TER is the larger business by revenue, generating $3.2B annually — 3.2x ONTO's $1.0B. Profitability is closely matched — net margins range from 17.5% (ONTO) to 17.4% (TER). On growth, TER holds the edge at +43.9% YoY revenue growth, suggesting stronger near-term business momentum.
| Metric | ONTOOnto Innovation I… | TERTeradyne, Inc. |
|---|---|---|
| RevenueTrailing 12 months | $1.0B | $3.2B |
| EBITDAEarnings before interest/tax | $215M | $794M |
| Net IncomeAfter-tax profit | $175M | $554M |
| Free Cash FlowCash after capex | $261M | $450M |
| Gross MarginGross profit ÷ Revenue | +50.7% | +58.3% |
| Operating MarginEBIT ÷ Revenue | +16.1% | +20.9% |
| Net MarginNet income ÷ Revenue | +17.5% | +17.4% |
| FCF MarginFCF ÷ Revenue | +26.1% | +14.1% |
| Rev. Growth (YoY)Latest quarter vs prior year | -13.5% | +43.9% |
| EPS Growth (YoY)Latest quarter vs prior year | -46.7% | +81.9% |
Valuation Metrics
At 53.2x trailing earnings, ONTO trades at a 42% valuation discount to TER's 92.0x P/E. On an enterprise value basis, ONTO's 41.8x EV/EBITDA is more attractive than TER's 61.2x.
| Metric | ONTOOnto Innovation I… | TERTeradyne, Inc. |
|---|---|---|
| Market CapShares × price | $10.6B | $50.1B |
| Enterprise ValueMkt cap + debt − cash | $10.4B | $50.2B |
| Trailing P/EPrice ÷ TTM EPS | 53.17x | 91.96x |
| Forward P/EPrice ÷ next-FY EPS est. | 43.45x | 50.31x |
| PEG RatioP/E ÷ EPS growth rate | 0.41x | — |
| EV / EBITDAEnterprise value multiple | 41.83x | 61.18x |
| Price / SalesMarket cap ÷ Revenue | 10.77x | 15.71x |
| Price / BookPrice ÷ Book value/share | 5.57x | 18.05x |
| Price / FCFMarket cap ÷ FCF | 49.73x | 111.28x |
Profitability & Efficiency
TER delivers a 19.8% return on equity — every $100 of shareholder capital generates $20 in annual profit, vs $9 for ONTO. ONTO carries lower financial leverage with a 0.01x debt-to-equity ratio, signaling a more conservative balance sheet compared to TER's 0.12x. On the Piotroski fundamental quality scale (0–9), ONTO scores 7/9 vs TER's 6/9, reflecting strong financial health.
| Metric | ONTOOnto Innovation I… | TERTeradyne, Inc. |
|---|---|---|
| ROE (TTM)Return on equity | +8.7% | +19.8% |
| ROA (TTM)Return on assets | +8.0% | +13.3% |
| ROICReturn on invested capital | +8.6% | +19.8% |
| ROCEReturn on capital employed | +10.1% | +22.5% |
| Piotroski ScoreFundamental quality 0–9 | 7 | 6 |
| Debt / EquityFinancial leverage | 0.01x | 0.12x |
| Net DebtTotal debt minus cash | -$198M | $53M |
| Cash & Equiv.Liquid assets | $213M | $294M |
| Total DebtShort + long-term debt | $15M | $347M |
| Interest CoverageEBIT ÷ Interest expense | — | 81.33x |
Total Returns (with DRIP)
A $10,000 investment in ONTO five years ago would be worth $32,666 today (with dividends reinvested), compared to $24,052 for TER. Over the past 12 months, TER leads with a +191.8% total return vs ONTO's +48.2%. The 3-year compound annual growth rate (CAGR) favors TER at 47.0% vs ONTO's 37.8% — a key indicator of consistent wealth creation.
| Metric | ONTOOnto Innovation I… | TERTeradyne, Inc. |
|---|---|---|
| YTD ReturnYear-to-date | +30.2% | +54.2% |
| 1-Year ReturnPast 12 months | +48.2% | +191.8% |
| 3-Year ReturnCumulative with dividends | +161.8% | +217.8% |
| 5-Year ReturnCumulative with dividends | +226.7% | +140.5% |
| 10-Year ReturnCumulative with dividends | +1455.4% | +1598.0% |
| CAGR (3Y)Annualised 3-year return | +37.8% | +47.0% |
Risk & Volatility
TER is the less volatile stock with a 1.90 beta — it tends to amplify market swings less than ONTO's 2.24 beta. A beta below 1.0 means the stock typically moves less than the S&P 500.
| Metric | ONTOOnto Innovation I… | TERTeradyne, Inc. |
|---|---|---|
| Beta (5Y)Sensitivity to S&P 500 | 2.24x | 1.90x |
| 52-Week HighHighest price in past year | $232.49 | $344.92 |
| 52-Week LowLowest price in past year | $85.88 | $65.77 |
| % of 52W HighCurrent price vs 52-week peak | +92.9% | +92.8% |
| RSI (14)Momentum oscillator 0–100 | 55.6 | 68.4 |
| Avg Volume (50D)Average daily shares traded | 713K | 2.7M |
Analyst Outlook
Wall Street rates ONTO as "Buy" and TER as "Buy". Consensus price targets imply 21.2% upside for ONTO (target: $262) vs -13.3% for TER (target: $278). TER is the only dividend payer here at 0.15% yield — a key consideration for income-focused portfolios.
| Metric | ONTOOnto Innovation I… | TERTeradyne, Inc. |
|---|---|---|
| Analyst RatingConsensus buy/hold/sell | Buy | Buy |
| Price TargetConsensus 12-month target | $261.67 | $277.58 |
| # AnalystsCovering analysts | 11 | 31 |
| Dividend YieldAnnual dividend ÷ price | — | +0.2% |
| Dividend StreakConsecutive years of raises | — | 4 |
| Dividend / ShareAnnual DPS | — | $0.48 |
| Buyback YieldShare repurchases ÷ mkt cap | +0.2% | +1.4% |
Historical Charts
Charts are rendered on first load. Hover for details.
Chart 1Total Return — 5 Years (Rebased to 100)
| Stock | Mar 20 | Feb 26 | Change |
|---|---|---|---|
| Onto Innovation Inc. (ONTO) | 100 | 647.98 | +548.0% |
| Teradyne, Inc. (TER) | 100 | 426.77 | +326.8% |
Onto Innovation Inc. (ONTO) returned +227% over 5 years vs Teradyne, Inc. (TER)'s +141%. A $10,000 investment in ONTO 5 years ago would be worth $32,666 today (including dividends reinvested).
Chart 2Revenue Growth — 10 Years
| Stock | 2016 | 2025 | Change |
|---|---|---|---|
| Onto Innovation Inc. (ONTO) | $233M | $987M | +324.1% |
| Teradyne, Inc. (TER) | $1.8B | $3.2B | +81.9% |
Teradyne, Inc.'s revenue grew from $1.8B (2016) to $3.2B (2025) — a 6.9% CAGR.
Chart 3Net Margin Trend — 10 Years
| Stock | 2016 | 2025 | Change |
|---|---|---|---|
| Onto Innovation Inc. (ONTO) | 15.9% | 20.4% | +28.7% |
| Teradyne, Inc. (TER) | -2.5% | 17.4% | +801.3% |
Teradyne, Inc.'s net margin went from -2% (2016) to 17% (2025).
Chart 4P/E Ratio History — 9 Years
| Stock | 2017 | 2025 | Change |
|---|---|---|---|
| Onto Innovation Inc. (ONTO) | 24.4 | 41.1 | +68.4% |
| Teradyne, Inc. (TER) | 32.7 | 55.6 | +70.0% |
Onto Innovation Inc. has traded in a 15x–76x P/E range over 7 years; current trailing P/E is ~53x. Teradyne, Inc. has traded in a 13x–56x P/E range over 9 years; current trailing P/E is ~92x.
Chart 5EPS Growth — 10 Years
| Stock | 2016 | 2025 | Change |
|---|---|---|---|
| Onto Innovation Inc. (ONTO) | 1.16 | 4.06 | +250.0% |
| Teradyne, Inc. (TER) | -0.21 | 3.48 | +1757.1% |
Teradyne, Inc.'s EPS grew from $-0.21 (2016) to $3.48 (2025).
Chart 6Free Cash Flow — 5 Years
Onto Innovation Inc. generated $214M FCF in 2024 (+31% vs 2021). Teradyne, Inc. generated $450M FCF in 2025 (-53% vs 2021).
ONTO vs TER: Frequently Asked Questions
9 questions · data-driven answers · updated daily
01Is ONTO or TER a better buy right now?
Onto Innovation Inc. (ONTO) offers the better valuation at 53.2x trailing P/E (43.4x forward), making it the more compelling value choice. Analysts rate Onto Innovation Inc. (ONTO) a "Buy" — based on 11 analyst ratings — the highest consensus in this comparison. The "better buy" depends entirely on your goals: growth investors should weight revenue trajectory, value investors should weight P/E and PEG, and income investors should weight dividend yield and streak.
02Which has the better valuation — ONTO or TER?
On trailing P/E, Onto Innovation Inc. (ONTO) is the cheapest at 53.2x versus Teradyne, Inc. at 92.0x. On forward P/E, Onto Innovation Inc. is actually cheaper at 43.4x.
03Which is the better long-term investment — ONTO or TER?
Over the past 5 years, Onto Innovation Inc. (ONTO) delivered a total return of +226.7%, compared to +140.5% for Teradyne, Inc. (TER). A $10,000 investment in ONTO five years ago would be worth approximately $33K today (assuming dividends reinvested). Over 10 years, the gap is even starker: TER returned +1598% versus ONTO's +1455%. Past returns do not guarantee future results, and the stock with the higher historical return may already have its best growth priced in.
04Which is safer — ONTO or TER?
By beta (market sensitivity over 5 years), Teradyne, Inc. (TER) is the lower-risk stock at 1.90β versus Onto Innovation Inc.'s 2.24β — meaning ONTO is approximately 18% more volatile than TER relative to the S&P 500. On balance sheet safety, Onto Innovation Inc. (ONTO) carries a lower debt/equity ratio of 1% versus 12% for Teradyne, Inc. — giving it more financial flexibility in a downturn.
05Which has better profit margins — ONTO or TER?
Onto Innovation Inc. (ONTO) is the more profitable company, earning 20.4% net margin versus 17.4% for Teradyne, Inc. — meaning it keeps 20.4% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: TER leads at 21.7% versus 19.0% for ONTO. At the gross margin level — before operating expenses — TER leads at 58.6%, reflecting greater pricing power or product mix advantage. Stronger margins indicate durable pricing power, lower cost of revenue, or higher mix of software/services. They are one of the clearest signs of business quality.
06Is ONTO or TER more undervalued right now?
On forward earnings alone, Onto Innovation Inc. (ONTO) trades at 43.4x forward P/E versus 50.3x for Teradyne, Inc. — 6.9x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for ONTO: 21.2% to $261.67.
07Which pays a better dividend — ONTO or TER?
In this comparison, TER (0.2% yield) pays a dividend. ONTO does not pay a meaningful dividend and should not be held primarily for income.
08Is ONTO or TER better for a retirement portfolio?
For long-horizon retirement investors, Teradyne, Inc. (TER) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (+1598% 10Y return). Onto Innovation Inc. (ONTO) carries a higher beta of 2.24 — meaning larger drawdowns in market downturns, which matters significantly when you cannot wait years for a recovery. Both have compounded well over 10 years (TER: +1598%, ONTO: +1455%), confirming both are viable long-term holds — but the lower-volatility option typically results in less emotional selling during corrections. Retirement portfolios generally favour predictability over maximum returns. Consult a financial advisor before making allocation decisions.
09What are the main differences between ONTO and TER?
Both stocks operate in the Technology sector, making this a peer-level intra-sector comparison — the same macro tailwinds and headwinds will affect both. These fundamental differences mean investors should not choose between them on a single metric — the "better stock" depends entirely on which of these characteristics aligns with your investment strategy.
Find Stocks Like These
Explore pre-built screens for each stock's profile, or build a custom screen to find stocks that beat both.