In today’s dynamic market landscape, I am comparing two intriguing companies: Teradyne, Inc. (TER) and Columbus McKinnon Corporation (CMCO). Both firms operate in distinct industries—semiconductors and industrial machinery, respectively—but share a commitment to innovation and technology-driven solutions. This comparison will shed light on their growth strategies and market potential. As an investor, you will want to stay tuned to discover which company might be the more compelling choice for your portfolio.
Table of contents
Company Overview
Teradyne, Inc. Overview
Teradyne, Inc. is a leading provider of automatic test equipment, primarily serving the semiconductor and telecommunications industries. Founded in 1960 and headquartered in North Reading, Massachusetts, Teradyne designs and manufactures testing solutions for various applications, including automotive, industrial, and consumer electronics. The company’s product portfolio includes advanced testing systems for semiconductor devices, wireless devices, and industrial automation solutions, such as collaborative robots. With a market capitalization of approximately $29.2B, Teradyne’s mission is to enhance the reliability and performance of electronic devices, enabling innovations across diverse sectors.
Columbus McKinnon Corporation Overview
Columbus McKinnon Corporation, established in 1875 and based in Buffalo, New York, specializes in intelligent motion solutions designed to move, lift, and secure materials. The company offers a wide range of products, including hoists, crane systems, rigging equipment, and automation technology. With a market cap of around $472M, Columbus McKinnon serves multiple industries such as construction, energy, and logistics. Its mission focuses on providing ergonomic and innovative solutions to improve productivity and safety in material handling.
Key similarities and differences
While both Teradyne and Columbus McKinnon operate in technology-driven sectors, their business models differ significantly. Teradyne focuses on semiconductor testing and automated solutions for electronics, while Columbus McKinnon specializes in material handling and lifting technologies. Both companies emphasize innovation and reliability but target distinct customer bases within their respective industries.
Income Statement Comparison
The following table presents a comparison of the most recent income statements for Teradyne, Inc. and Columbus McKinnon Corporation to help investors assess their financial performance.
| Metric | Teradyne, Inc. (TER) | Columbus McKinnon Corporation (CMCO) |
|---|---|---|
| Market Cap | 29.22B | 472.29M |
| Revenue | 2.82B | 963.03M |
| EBITDA | 732.41M | 75.11M |
| EBIT | 612.67M | 26.92M |
| Net Income | 542.37M | -5.14M |
| EPS | 3.41 | -0.18 |
| Fiscal Year | 2024 | 2024 |
Interpretation of Income Statement
In the latest fiscal year, Teradyne, Inc. reported a revenue increase to 2.82B, reflecting strong demand in the semiconductor sector. Meanwhile, Columbus McKinnon experienced a lower revenue of 963.03M, with a notable decline in net income, resulting in a loss of 5.14M. Teradyne’s EBITDA margin improved slightly, indicating operational efficiency, while Columbus McKinnon’s negative net income highlights ongoing challenges. Overall, Teradyne shows positive growth trends, whereas Columbus McKinnon is grappling with profitability issues. Investors should consider these factors when evaluating potential investments.
Financial Ratios Comparison
The table below summarizes the most recent financial ratios for Teradyne, Inc. (TER) and Columbus McKinnon Corporation (CMCO), providing a clear comparison of their financial health.
| Metric | Teradyne, Inc. (TER) | Columbus McKinnon (CMCO) |
|---|---|---|
| ROE | 19.24% | -0.58% |
| ROIC | 17.25% | 3.68% |
| P/E | 36.93 | -94.69 |
| P/B | 7.10 | 0.55 |
| Current Ratio | 2.91 | 1.81 |
| Quick Ratio | 1.84 | 1.04 |
| D/E | 0.03 | 0.61 |
| Debt-to-Assets | 0.02 | 0.31 |
| Interest Coverage | 165.54 | 1.68 |
| Asset Turnover | 0.76 | 0.55 |
| Fixed Asset Turnover | 4.88 | 9.07 |
| Payout Ratio | 14.09% | -156.52% |
| Dividend Yield | 0.38% | 1.65% |
Interpretation of Financial Ratios
Teradyne presents strong financial metrics, particularly with a solid ROE of 19.24% and an excellent interest coverage ratio of 165.54, indicating robust profitability and a strong ability to cover interest obligations. In contrast, Columbus McKinnon struggles with negative ROE and a high debt-to-equity ratio (0.61), raising concerns about financial stability and operational efficiency. The disparity suggests Teradyne may represent a more attractive option for risk-averse investors.
Dividend and Shareholder Returns
Teradyne, Inc. (TER) pays dividends with a modest payout ratio of 14.1%, offering a dividend yield of 0.38%. In contrast, Columbus McKinnon Corporation (CMCO) does not distribute dividends due to negative net income, opting instead for reinvestment strategies that may enhance long-term value. Both companies engage in share buybacks, indicating a commitment to returning capital to shareholders. Overall, Teradyne’s consistent dividend policy may support sustainable value creation, while CMCO’s reinvestment approach could be beneficial if executed effectively.
Strategic Positioning
Teradyne, Inc. (TER) holds a significant position in the semiconductor testing market, leveraging its advanced testing solutions across various sectors, including automotive and communications. With a market cap of $29.2B, the company faces competitive pressure from emerging tech firms and established players in automation. Columbus McKinnon Corporation (CMCO), valued at $472M, specializes in material handling solutions, competing with both legacy manufacturers and innovative startups. Both companies must navigate technological disruptions to maintain their market shares.
Stock Comparison
In this section, I will analyze the weekly stock price movements of Teradyne, Inc. (TER) and Columbus McKinnon Corporation (CMCO) over the past year, highlighting significant price dynamics and trading behaviors.
Trend Analysis
For Teradyne, Inc. (TER), the stock has experienced a remarkable price change of +76.99% over the past year. This indicates a bullish trend. The highest price recorded was 182.28, while the lowest was 68.72, reflecting notable volatility with a standard deviation of 24.53. The recent trend, from September 14, 2025, to November 30, 2025, shows a price change of +62.05%, confirming the acceleration of the bullish trend with a trend slope of 5.94 and a standard deviation of 23.47.
In contrast, Columbus McKinnon Corporation (CMCO) has faced a significant decline with a price change of -55.48% over the same period, denoting a bearish trend. The stock reached a high of 44.9 and a low of 12.96, with a standard deviation of 11.26, indicating volatility. In the recent trend from September 14, 2025, to November 30, 2025, there was a slight positive shift of +13.85%, but the overall trend remains bearish. The trend slope during this period is minimal at 0.12, and the standard deviation is low at 0.65, suggesting reduced volatility compared to the overall trend.
In summary, Teradyne presents a strong bullish opportunity, while Columbus McKinnon continues to struggle, warranting caution for investors.
Analyst Opinions
Recent analyses suggest a positive outlook for both Teradyne, Inc. (TER) and Columbus McKinnon Corporation (CMCO). Analysts rate TER with a “B,” highlighting strong return on assets (5) but cautioning about its price-to-earnings (1) and price-to-book (1) scores. CMCO received a “B+” rating, with solid discounted cash flow (5) and price-to-book (5) scores, though it lags in return on equity (2). Overall, the consensus for both companies leans towards a “buy” for 2025, reflecting confidence in their growth potential despite some risk factors.
Stock Grades
In this section, I present the latest stock ratings for Teradyne, Inc. (TER) and Columbus McKinnon Corporation (CMCO) based on reliable grading data.
Teradyne, Inc. Grades
| Grading Company | Action | New Grade | Date |
|---|---|---|---|
| Citigroup | Maintain | Buy | 2025-11-12 |
| JP Morgan | Maintain | Neutral | 2025-10-30 |
| Goldman Sachs | Maintain | Sell | 2025-10-30 |
| Evercore ISI Group | Maintain | Outperform | 2025-10-30 |
| UBS | Maintain | Buy | 2025-10-30 |
| Stifel | Maintain | Hold | 2025-10-28 |
| Evercore ISI Group | Maintain | Outperform | 2025-10-28 |
| UBS | Maintain | Buy | 2025-10-20 |
| Morgan Stanley | Maintain | Equal Weight | 2025-10-14 |
| Stifel | Maintain | Hold | 2025-10-13 |
Columbus McKinnon Corporation Grades
| Grading Company | Action | New Grade | Date |
|---|---|---|---|
| DA Davidson | Downgrade | Neutral | 2025-02-11 |
| DA Davidson | Maintain | Buy | 2024-02-05 |
| DA Davidson | Maintain | Buy | 2022-10-04 |
| DA Davidson | Maintain | Buy | 2022-10-03 |
| Barrington Research | Maintain | Outperform | 2022-07-29 |
| Barrington Research | Maintain | Outperform | 2022-07-28 |
| JP Morgan | Downgrade | Neutral | 2022-05-26 |
| Barrington Research | Maintain | Outperform | 2022-05-26 |
| Barrington Research | Maintain | Outperform | 2022-05-25 |
| JP Morgan | Downgrade | Neutral | 2022-05-25 |
Overall, Teradyne maintains a stable outlook with a mix of “Buy” and “Neutral” ratings, while Columbus McKinnon has seen a downgrade to “Neutral” from “Buy,” indicating a shift in sentiment. Investors should consider these trends when evaluating their positions in these stocks.
Target Prices
The consensus target prices for the companies analyzed reveal varied expectations from analysts.
| Company | Target High | Target Low | Consensus |
|---|---|---|---|
| Teradyne, Inc. (TER) | 215 | 119 | 172.67 |
| Columbus McKinnon Corporation (CMCO) | 50 | 48 | 49 |
For Teradyne, the consensus target of 172.67 suggests a slight potential downside from its current price of 181.9, indicating mixed analyst sentiment. In contrast, Columbus McKinnon shows a target consensus of 49 compared to its current price of 16.44, suggesting significant upside potential.
Strengths and Weaknesses
In the table below, I summarize the strengths and weaknesses of Teradyne, Inc. (TER) and Columbus McKinnon Corporation (CMCO) based on the most recent data.
| Criterion | Teradyne (TER) | Columbus McKinnon (CMCO) |
|---|---|---|
| Diversification | High | Moderate |
| Profitability | Strong (19.2% net margin) | Weak (Negative net margin) |
| Innovation | High | Moderate |
| Global presence | Strong | Moderate |
| Market Share | Leading | Niche |
| Debt level | Low (2.1%) | High (31.1%) |
Key takeaways indicate that Teradyne exhibits strong profitability and low debt levels, making it a robust investment option. Conversely, Columbus McKinnon faces profitability challenges and higher debt, suggesting a more cautious approach when considering investments in this company.
Risk Analysis
The following table outlines the key risks associated with two companies: Teradyne, Inc. (TER) and Columbus McKinnon Corporation (CMCO).
| Metric | Teradyne, Inc. (TER) | Columbus McKinnon Corporation (CMCO) |
|---|---|---|
| Market Risk | High | Moderate |
| Regulatory Risk | Moderate | High |
| Operational Risk | Moderate | High |
| Environmental Risk | Low | Moderate |
| Geopolitical Risk | Moderate | High |
In my analysis, the most significant risks for both companies are regulatory and operational. Teradyne faces challenges due to the semiconductor industry’s volatility, while Columbus McKinnon is impacted by fluctuating demand in industrial sectors, potentially leading to revenue instability.
Which one to choose?
When comparing Teradyne, Inc. (TER) and Columbus McKinnon Corporation (CMCO), Teradyne shows stronger fundamentals. With a market cap of approximately $20B, TER has a net profit margin of 19.23% and a return on equity of 19.24%, reflecting solid profitability. In contrast, CMCO, with a market cap of around $486M, struggles with negative net income margins and lower efficiency ratios.
TER’s stock trend is bullish, with a 76.99% price increase over the last year, while CMCO’s trend is bearish, having decreased by 55.48%. Analysts rate TER as a B, driven by its robust operational metrics, whereas CMCO holds a B+ rating, primarily due to its discounted cash flow score.
Investors focused on growth may prefer TER for its favorable growth trajectory, while those seeking value opportunities might find CMCO’s valuation attractive despite its current challenges. However, both companies face industry risks, such as competition and market dependence.
Disclaimer: This article is not financial advice. Each investor is responsible for their own investment decisions.
Go further
I encourage you to read the complete analyses of Teradyne, Inc. and Columbus McKinnon Corporation to enhance your investment decisions:
