Comprehensive Stock Comparison
Compare Teradyne, Inc. (TER) vs Nova Ltd. (NVMI) Stock
Analyze side-by-side fundamentals, valuation, growth, and profitability to decide which stock is the better buy.
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Quick Verdict
| Category | Winner | Why |
|---|---|---|
| Growth | NVMI | 29.8% revenue growth vs TER's 13.1% |
| Value | NVMI | Lower P/E (42.8x vs 50.3x) |
| Quality / Margins | NVMI | 29.4% net margin vs TER's 17.4% |
| Stability / Safety | NVMI | Beta 1.83 vs TER's 1.90 |
| Dividends | TER | 0.2% yield; 4-year raise streak; NVMI pays no meaningful dividend |
| Momentum (1Y) | TER | +191.8% vs NVMI's +83.5% |
| Efficiency (ROA) | TER | 13.3% ROA vs NVMI's 11.0%, ROIC 19.8% vs 14.9% |
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
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.
Nova Ltd. is a semiconductor process control systems company that designs and sells metrology equipment used to measure and monitor chip manufacturing processes. It generates revenue primarily from selling its dimensional, films, and materials metrology platforms—which account for the vast majority of sales—to logic, foundry, and memory chip manufacturers worldwide. The company's competitive advantage lies in its deep expertise in complex measurement technologies and strong customer relationships with leading semiconductor manufacturers who rely on its precision tools for advanced process control.
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
NVMI leads in 2 of 6 categories (Valuation Metrics, Total Returns). TER leads in 1 (Profitability & Efficiency). 2 tied.
Financial Metrics (TTM)
TER is the larger business by revenue, generating $3.2B annually — 3.6x NVMI's $881M. NVMI is the more profitable business, keeping 29.4% of every revenue dollar as net income compared to TER's 17.4%. On growth, TER holds the edge at +43.9% YoY revenue growth, suggesting stronger near-term business momentum.
| Metric | TERTeradyne, Inc. | NVMINova Ltd. |
|---|---|---|
| RevenueTrailing 12 months | $3.2B | $881M |
| EBITDAEarnings before interest/tax | $794M | $276M |
| Net IncomeAfter-tax profit | $554M | $259M |
| Free Cash FlowCash after capex | $450M | $218M |
| Gross MarginGross profit ÷ Revenue | +58.3% | +57.4% |
| Operating MarginEBIT ÷ Revenue | +20.9% | +28.8% |
| Net MarginNet income ÷ Revenue | +17.4% | +29.4% |
| FCF MarginFCF ÷ Revenue | +14.1% | +24.7% |
| Rev. Growth (YoY)Latest quarter vs prior year | +43.9% | +14.3% |
| EPS Growth (YoY)Latest quarter vs prior year | +81.9% | +22.8% |
Valuation Metrics
At 76.3x trailing earnings, NVMI trades at a 17% valuation discount to TER's 92.0x P/E. On an enterprise value basis, TER's 61.2x EV/EBITDA is more attractive than NVMI's 63.1x.
| Metric | TERTeradyne, Inc. | NVMINova Ltd. |
|---|---|---|
| Market CapShares × price | $50.1B | $12.8B |
| Enterprise ValueMkt cap + debt − cash | $50.2B | $12.9B |
| Trailing P/EPrice ÷ TTM EPS | 91.96x | 76.32x |
| Forward P/EPrice ÷ next-FY EPS est. | 50.31x | 42.79x |
| PEG RatioP/E ÷ EPS growth rate | — | 2.11x |
| EV / EBITDAEnterprise value multiple | 61.18x | 63.09x |
| Price / SalesMarket cap ÷ Revenue | 15.71x | 19.11x |
| Price / BookPrice ÷ Book value/share | 18.05x | 15.20x |
| Price / FCFMarket cap ÷ FCF | 111.28x | 58.93x |
Profitability & Efficiency
TER delivers a 19.8% return on equity — every $100 of shareholder capital generates $20 in annual profit, vs $20 for NVMI. TER carries lower financial leverage with a 0.12x debt-to-equity ratio, signaling a more conservative balance sheet compared to NVMI's 0.25x. On the Piotroski fundamental quality scale (0–9), NVMI scores 8/9 vs TER's 6/9, reflecting strong financial health.
| Metric | TERTeradyne, Inc. | NVMINova Ltd. |
|---|---|---|
| ROE (TTM)Return on equity | +19.8% | +19.7% |
| ROA (TTM)Return on assets | +13.3% | +11.0% |
| ROICReturn on invested capital | +19.8% | +14.9% |
| ROCEReturn on capital employed | +22.5% | +20.7% |
| Piotroski ScoreFundamental quality 0–9 | 6 | 8 |
| Debt / EquityFinancial leverage | 0.12x | 0.25x |
| Net DebtTotal debt minus cash | $53M | $78M |
| Cash & Equiv.Liquid assets | $294M | $158M |
| Total DebtShort + long-term debt | $347M | $236M |
| Interest CoverageEBIT ÷ Interest expense | 81.33x | 116.20x |
Total Returns (with DRIP)
A $10,000 investment in NVMI five years ago would be worth $48,991 today (with dividends reinvested), compared to $24,052 for TER. Over the past 12 months, TER leads with a +191.8% total return vs NVMI's +83.5%. The 3-year compound annual growth rate (CAGR) favors NVMI at 69.2% vs TER's 47.0% — a key indicator of consistent wealth creation.
| Metric | TERTeradyne, Inc. | NVMINova Ltd. |
|---|---|---|
| YTD ReturnYear-to-date | +54.2% | +26.3% |
| 1-Year ReturnPast 12 months | +191.8% | +83.5% |
| 3-Year ReturnCumulative with dividends | +217.8% | +384.5% |
| 5-Year ReturnCumulative with dividends | +140.5% | +389.9% |
| 10-Year ReturnCumulative with dividends | +1598.0% | +4009.2% |
| CAGR (3Y)Annualised 3-year return | +47.0% | +69.2% |
Risk & Volatility
NVMI is the less volatile stock with a 1.83 beta — it tends to amplify market swings less than TER's 1.90 beta. A beta below 1.0 means the stock typically moves less than the S&P 500. TER currently trades 92.8% from its 52-week high vs NVMI's 86.5% drawdown — a narrower gap to the peak suggests stronger recent price momentum.
| Metric | TERTeradyne, Inc. | NVMINova Ltd. |
|---|---|---|
| Beta (5Y)Sensitivity to S&P 500 | 1.90x | 1.83x |
| 52-Week HighHighest price in past year | $344.92 | $507.27 |
| 52-Week LowLowest price in past year | $65.77 | $154.00 |
| % of 52W HighCurrent price vs 52-week peak | +92.8% | +86.5% |
| RSI (14)Momentum oscillator 0–100 | 68.4 | 50.4 |
| Avg Volume (50D)Average daily shares traded | 2.7M | 335K |
Analyst Outlook
Wall Street rates TER as "Buy" and NVMI as "Buy". Consensus price targets imply 11.5% upside for NVMI (target: $490) 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 | TERTeradyne, Inc. | NVMINova Ltd. |
|---|---|---|
| Analyst RatingConsensus buy/hold/sell | Buy | Buy |
| Price TargetConsensus 12-month target | $277.58 | $489.50 |
| # AnalystsCovering analysts | 31 | 12 |
| Dividend YieldAnnual dividend ÷ price | +0.2% | — |
| Dividend StreakConsecutive years of raises | 4 | — |
| Dividend / ShareAnnual DPS | $0.48 | — |
| Buyback YieldShare repurchases ÷ mkt cap | +1.4% | +0.2% |
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 |
|---|---|---|---|
| Teradyne, Inc. (TER) | 100 | 426.77 | +326.8% |
| Nova Ltd. (NVMI) | 100 | 1,247.32 | +1147.3% |
Nova Ltd. (NVMI) returned +390% over 5 years vs Teradyne, Inc. (TER)'s +141%. A $10,000 investment in NVMI 5 years ago would be worth $48,991 today (including dividends reinvested).
Chart 2Revenue Growth — 10 Years
| Stock | 2016 | 2025 | Change |
|---|---|---|---|
| Teradyne, Inc. (TER) | $1.8B | $3.2B | +81.9% |
| Nova Ltd. (NVMI) | $164M | $672M | +310.2% |
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 |
|---|---|---|---|
| Teradyne, Inc. (TER) | -2.5% | 17.4% | +801.3% |
| Nova Ltd. (NVMI) | 5.9% | 27.3% | +364.5% |
Teradyne, Inc.'s net margin went from -2% (2016) to 17% (2025).
Chart 4P/E Ratio History — 9 Years
| Stock | 2017 | 2025 | Change |
|---|---|---|---|
| Teradyne, Inc. (TER) | 32.7 | 55.6 | +70.0% |
| Nova Ltd. (NVMI) | 15.9 | 34.3 | +115.7% |
Teradyne, Inc. has traded in a 13x–56x P/E range over 9 years; current trailing P/E is ~92x. Nova Ltd. has traded in a 12x–47x P/E range over 8 years; current trailing P/E is ~76x.
Chart 5EPS Growth — 10 Years
| Stock | 2016 | 2025 | Change |
|---|---|---|---|
| Teradyne, Inc. (TER) | -0.21 | 3.48 | +1757.1% |
| Nova Ltd. (NVMI) | 0.35 | 5.75 | +1542.9% |
Teradyne, Inc.'s EPS grew from $-0.21 (2016) to $3.48 (2025).
Chart 6Free Cash Flow — 5 Years
Teradyne, Inc. generated $450M FCF in 2025 (-53% vs 2021). Nova Ltd. generated $218M FCF in 2024 (+71% vs 2021).
TER vs NVMI: Frequently Asked Questions
9 questions · data-driven answers · updated daily
01Is TER or NVMI a better buy right now?
Nova Ltd. (NVMI) offers the better valuation at 76.3x trailing P/E (42.8x forward), making it the more compelling value choice. Analysts rate Teradyne, Inc. (TER) a "Buy" — based on 31 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 — TER or NVMI?
On trailing P/E, Nova Ltd. (NVMI) is the cheapest at 76.3x versus Teradyne, Inc. at 92.0x. On forward P/E, Nova Ltd. is actually cheaper at 42.8x.
03Which is the better long-term investment — TER or NVMI?
Over the past 5 years, Nova Ltd. (NVMI) delivered a total return of +389.9%, compared to +140.5% for Teradyne, Inc. (TER). A $10,000 investment in NVMI five years ago would be worth approximately $49K today (assuming dividends reinvested). Over 10 years, the gap is even starker: NVMI returned +40.1% versus TER's +1598%. 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 — TER or NVMI?
By beta (market sensitivity over 5 years), Nova Ltd. (NVMI) is the lower-risk stock at 1.83β versus Teradyne, Inc.'s 1.90β — meaning TER is approximately 4% more volatile than NVMI relative to the S&P 500. On balance sheet safety, Teradyne, Inc. (TER) carries a lower debt/equity ratio of 12% versus 25% for Nova Ltd. — giving it more financial flexibility in a downturn.
05Which has better profit margins — TER or NVMI?
Nova Ltd. (NVMI) is the more profitable company, earning 27.3% net margin versus 17.4% for Teradyne, Inc. — meaning it keeps 27.3% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: NVMI leads at 27.9% versus 21.7% for TER. 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 TER or NVMI more undervalued right now?
On forward earnings alone, Nova Ltd. (NVMI) trades at 42.8x forward P/E versus 50.3x for Teradyne, Inc. — 7.5x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for NVMI: 11.5% to $489.50.
07Which pays a better dividend — TER or NVMI?
In this comparison, TER (0.2% yield) pays a dividend. NVMI does not pay a meaningful dividend and should not be held primarily for income.
08Is TER or NVMI 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). Nova Ltd. (NVMI) carries a higher beta of 1.83 — 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%, NVMI: +40.1%), 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 TER and NVMI?
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.
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