Teradyne (NASDAQ:TER) versus One Stop Systems (NASDAQ:OSS) Critical Analysis

Teradyne (NASDAQ:TERGet Free Report) and One Stop Systems (NASDAQ:OSSGet Free Report) are both computer and technology companies, but which is the better investment? We will contrast the two companies based on the strength of their profitability, dividends, institutional ownership, earnings, risk, analyst recommendations and valuation.

Profitability

This table compares Teradyne and One Stop Systems’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Teradyne 22.55% 31.79% 22.36%
One Stop Systems 12.44% -0.24% -0.18%

Analyst Recommendations

This is a summary of current ratings and target prices for Teradyne and One Stop Systems, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Teradyne 0 3 12 1 2.88
One Stop Systems 0 2 3 0 2.60

Teradyne currently has a consensus target price of $382.87, suggesting a potential upside of 3.73%. One Stop Systems has a consensus target price of $16.00, suggesting a potential upside of 1.98%. Given Teradyne’s stronger consensus rating and higher probable upside, equities analysts clearly believe Teradyne is more favorable than One Stop Systems.

Valuation and Earnings

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

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Teradyne $3.79 billion 15.26 $554.05 million $5.40 68.35
One Stop Systems $32.22 million 12.05 $5.09 million $0.25 62.76

Teradyne has higher revenue and earnings than One Stop Systems. One Stop Systems 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. Comparatively, 32.7% of One Stop Systems shares are owned by institutional investors. 0.2% of Teradyne shares are owned by company insiders. Comparatively, 3.9% of One Stop Systems shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Risk and Volatility

Teradyne has a beta of 1.74, suggesting that its share price is 74% more volatile than the S&P 500. Comparatively, One Stop Systems has a beta of 1.43, suggesting that its share price is 43% more volatile than the S&P 500.

Summary

Teradyne beats One Stop Systems on 14 of the 15 factors compared between the two stocks.

About Teradyne

(Get Free Report)

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.

About One Stop Systems

(Get Free Report)

One Stop Systems, Inc. engages in the design, manufacture, and marketing of high-performance compute, high speed storage hardware and software, switch fabrics, and systems for edge deployments in the United States and internationally. The company's systems are built using the central processing unit, graphical processing unit, high-speed switch fabrics, and flash storage technologies. It provides custom servers, data acquisition platforms, compute accelerators, solid-state storage arrays, and system I/O expansion systems, as well as edge optimized industrial and panel PCs, tablets, and handheld compute devices. The company also offers ruggedized mobile tablets and handhelds that meet the specialized requirement for devices deployed at the edge in a diverse set of environmental conditions. It sells its products to multinational companies, governmental agencies, military contractors, military services, and technology providers through its website, web store, direct sales team, and original equipment manufacturer focused sales, as well as through a network of resellers and distributors. The company was founded in 1998 and is headquartered in Escondido, California.

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