Teradyne vs. Apple: TER stock's similar valuation vs. AAPL appears counterintuitive

Last Updated: 11/21/2024

Apple Appears To Be A Better Choice Compared To Teradyne

AAPL valuation (P/EBIT) is similar vs. TER, but AAPL has performed better on growth and better on margins

This disconnect between valuation and financial performance implies that AAPL could be a better buy 

 

Teradyne valuation (P/EBIT) is similar compared to Apple

TER vs. AAPL P/EBIT Change In Last 3 Years: 29% vs. 14%

Teradyne revenue growth is worse compared to Apple

TER vs. AAPL Revenue Growth:   Last Q: 6.6% vs. 4.9%; Last 12 Months: -33% vs. 0.4%; Last 3 Years Average: -5.0% vs. 12%

Teradyne's EBIT margin expansion is worse compared to Apple

TER vs. AAPL EBIT Margin Change:   Last 3 Years: 0.6x vs. 1.1x

While Apple appears to be the better choice today, how has its stock performed vs. Teradyne in the past?

Since 2020, returns have been:

  • 241% for Teradyne (TER)
  • 504% for Apple (AAPL) 
  • 135% for S&P 500 
  • 510% for Trefis Multi-Strategy Portfolio 

Making Sense Of Counterintuitive Comparisons

Concepts, FAQ, And Things You May Want To Know

[1] What Is The Purpose Of Counterintuitive Comparisons?

[2] How Do You Find These Counterintuitive Pairs?

[3] If I Were To Decide Based On Counterintuitive Comparisons, How Likely Is It That I Will Make The Right Pick?

[4] Where Can I See More Such Counterintuitive Comparisons?

[5] I Don't Want To Go Through Multiple Comparisons, Can You Simplify Investment Decision For Me?

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