Comparing Teradyne (NASDAQ:TER) & XCHG (NASDAQ:XCH)

XCHG (NASDAQ:XCH) and Teradyne (NASDAQ:TER) are both computer and technology companies, but which is the better stock? We will contrast the two businesses based on the strength of their profitability, earnings, analyst recommendations, dividends, institutional ownership, valuation and risk.

Profitability

This table compares XCHG and Teradyne’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
XCHG	N/A	N/A	N/A
Teradyne	22.55%	31.79%	22.36%

Valuation & Earnings

This table compares XCHG and Teradyne”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
XCHG	$25.10 million	2.40	-$11.94 million	($0.08)	-12.69
Teradyne	$3.19 billion	16.95	$554.05 million	$5.40	63.97

Teradyne has higher revenue and earnings than XCHG. XCHG is trading at a lower price-to-earnings ratio than Teradyne, indicating that it is currently the more affordable of the two stocks.

Institutional & Insider Ownership

99.8% of Teradyne shares are owned by institutional investors. 0.2% of Teradyne shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Analyst Recommendations

This is a breakdown of current ratings for XCHG and Teradyne, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
XCHG	1	1	0	0	1.50
Teradyne	0	5	11	0	2.69

Teradyne has a consensus target price of $339.80, indicating a potential downside of 1.63%. Given Teradyne’s stronger consensus rating and higher probable upside, analysts plainly believe Teradyne is more favorable than XCHG.

Volatility and Risk

XCHG has a beta of -0.69, meaning that its share price is 169% less volatile than the S&P 500. Comparatively, Teradyne has a beta of 1.79, meaning that its share price is 79% more volatile than the S&P 500.

Summary

Teradyne beats XCHG on 14 of the 14 factors compared between the two stocks.

About XCHG

XCHG Limited, branded as XCharge, is a company whose subsidiaries design, manufacture, and sell electric vehicle (EV) charging solutions under the X-Charge name in Europe, China, the United States, and other international markets. The company focuses on DC fast-charging infrastructure, including its C6 and C7 series chargers and Net Zero battery-integrated fast-charging systems, and also provides related software upgrades and hardware maintenance services for EV manufacturers, energy companies, and charge point operators. Founded in 2015, XCHG positions itself as a global provider of integrated EV charging solutions that combine high-power charging with smart energy management.

About Teradyne

Teradyne, Inc. designs, develops, manufactures, and sells automated test systems and robotics products worldwide. It operates through four segments; Semiconductor Test, System Test, Robotics, and Wireless Test. The Semiconductor Test segment offers products and services for wafer level and device package testing of semiconductor devices in automotive, industrial, communications, consumer, smartphones, cloud, computer and electronic game, and other applications. This segment also provides FLEX test platform systems; J750 test system to address the volume semiconductor devices, including microcontrollers; Magnum platform that tests memory devices, such as flash memory and DRAM; and ETS platform for semiconductor manufacturers, and assembly and test subcontractors in the analog/mixed signal markets. It serves integrated device manufacturers that integrate the fabrication of silicon wafers into their business; fabless companies that outsource the manufacturing of silicon wafers; foundries; and semiconductor assembly and test providers. The System Test segment offers defense/aerospace test instrumentation and systems; storage and system level test systems; and circuit-board test and inspection systems. The Wireless Test segment provides wireless test solutions for silicon validation, wireless module manufacturing, and wireless end device manufacturing under the LitePoint brand. This segment also offers IQxel-MX and IQxel-MW7G series products for edge measurement performance in the manufacturing of connectivity products; IQxstream-5G and IQgig-5G family products to support 4G and 5G technologies; and IQgig-UWB+ for certification and manufacturing test support for ultra wideband products. The Robotics segment provides collaborative robotic arms, autonomous mobile robots, and advanced robotic control software for manufacturing, logistics, and industrial customers. The company was incorporated in 1960 and is headquartered in North Reading, Massachusetts.