In today’s rapidly evolving market landscape, comparing companies across different sectors can illuminate unique investment opportunities. This analysis focuses on Teradyne, Inc. (TER), a key player in the semiconductor industry, and JBT Marel Corporation (JBTM), which specializes in innovative solutions for the food processing sector. Both companies share a commitment to technological advancement and operational efficiency, but they operate in distinct markets. Join me as we explore which of these two companies holds more promise for your investment portfolio.
Table of contents
Company Overview
Teradyne, Inc. Overview
Teradyne, Inc. is a leader in the design and manufacturing of automatic test equipment, primarily for the semiconductor industry. Founded in 1960 and headquartered in North Reading, Massachusetts, the company operates through various segments, including Semiconductor Test, System Test, Industrial Automation, and Wireless Test. Teradyne’s products are vital for testing a range of devices, from automotive components to advanced consumer electronics. With a market cap of approximately $29.2B, Teradyne serves a global clientele consisting of integrated device manufacturers, fabless companies, and semiconductor assembly providers, making it a pivotal player in the high-tech landscape.
JBT Marel Corporation Overview
JBT Marel Corporation, formerly known as John Bean Technologies Corporation, specializes in technology solutions for the food and beverage processing industry. Established in 1994 and based in Chicago, Illinois, JBT Marel offers an expansive suite of processing technologies, including chilling, cooking, and packaging solutions. The company has a market capitalization of around $7.3B and operates in various sectors, from baby food to pharmaceuticals, catering to a diverse array of clients worldwide. Their commitment to innovation positions them as a key player in the industrial machinery sector.
Key similarities and differences
Both Teradyne and JBT Marel operate in distinct sectors—technology and industrial machinery—yet share a commitment to providing advanced solutions for their respective industries. Teradyne focuses on semiconductor testing, while JBT Marel emphasizes food processing technology. Their business models diverge, with Teradyne leaning heavily on electronics and automation, whereas JBT Marel centers on the food and beverage market, showcasing their unique market niches.
Income Statement Comparison
The following table provides a comprehensive overview of the most recent income statements for Teradyne, Inc. and JBT Marel Corporation, allowing for an insightful comparison of their financial performance.
| Metric | Teradyne, Inc. | JBT Marel Corporation |
|---|---|---|
| Market Cap | 29.22B | 7.30B |
| Revenue | 2.82B | 1.72B |
| EBITDA | 732M | 204M |
| EBIT | 613M | 115M |
| Net Income | 542M | 85M |
| EPS | 3.41 | 2.67 |
| Fiscal Year | 2024 | 2024 |
Interpretation of Income Statement
In the latest fiscal year, Teradyne reported a revenue increase to 2.82B, reflecting a growth trend compared to prior periods. However, JBT Marel also demonstrated strong performance with revenues of 1.72B, marking a consistent upward trajectory. Teradyne’s net income of 542M indicates solid profitability, although it represents a decline from previous years, highlighting potential margin pressures. In contrast, JBT Marel’s net income of 85M shows resilience and improvement in its operations. Both companies exhibit stability in margins, but Teradyne’s recent performance suggests a need for strategic adjustments to sustain growth.
Financial Ratios Comparison
Below is a comparative table of the most recent financial ratios for Teradyne, Inc. (TER) and JBT Marel Corporation (JBTM):
| Metric | TER | JBTM |
|---|---|---|
| ROE | 19.24% | 5.53% |
| ROIC | 17.25% | 3.65% |
| P/E | 36.93 | 47.63 |
| P/B | 7.10 | 2.63 |
| Current Ratio | 2.91 | 3.48 |
| Quick Ratio | 1.84 | 3.04 |
| D/E | 0.03 | 0.81 |
| Debt-to-Assets | 0.02 | 0.37 |
| Interest Coverage | 165.54 | 6.10 |
| Asset Turnover | 0.76 | 0.50 |
| Fixed Asset Turnover | 4.88 | 7.34 |
| Payout Ratio | 14.09% | 15.34% |
| Dividend Yield | 0.38% | 0.32% |
Interpretation of Financial Ratios
The comparison reveals that Teradyne (TER) has superior return metrics (ROE and ROIC) and a significantly higher interest coverage ratio, indicating stronger profitability and financial health. JBTM shows a higher current and quick ratio, suggesting better short-term liquidity but a higher debt ratio may indicate potential risk. Overall, TER appears to be a more robust investment option, albeit with a higher valuation (P/E and P/B ratios) compared to JBTM.
Dividend and Shareholder Returns
Teradyne, Inc. (TER) pays a dividend of $0.48 per share, with a payout ratio of approximately 14.1% and an annual yield of 0.38%. The company engages in share buybacks, which can enhance shareholder value but carries risks of unsustainable distributions. Conversely, JBT Marel Corporation (JBTM) currently does not pay dividends, focusing instead on reinvesting for growth. However, it has a modest payout ratio of approximately 2.2%, indicating potential for future distributions. Overall, both companies’ strategies reflect a balanced approach to shareholder value creation, though TER appears to provide more immediate returns.
Strategic Positioning
Teradyne, Inc. (TER) commands a significant market share in the semiconductor testing industry, driven by its advanced test solutions across various sectors, including automotive and consumer electronics. In contrast, JBT Marel Corporation (JBTM) focuses on the food and beverage processing market, offering comprehensive technology solutions. Both companies face competitive pressures from emerging technologies and market entrants, but their established reputations and innovative offerings provide a robust defense against potential disruptions. As an investor, I prioritize companies with strong market positions and adaptability to technological changes.
Stock Comparison
Over the past year, Teradyne, Inc. (TER) and JBT Marel Corporation (JBTM) have exhibited significant stock price movements, with both companies demonstrating bullish trends. The trading dynamics reflect a strong investor interest, showcasing their performance amidst changing market conditions.
Trend Analysis
For Teradyne, Inc. (TER), the overall percentage change over the past year stands at +76.99%, indicating a robust bullish trend. The stock has experienced notable price fluctuations, reaching a high of 182.28 and a low of 68.72. The recent trend, from September 14, 2025, to November 30, 2025, shows a +62.05% change, with an acceleration in its upward trajectory and a standard deviation of 23.47, suggesting a moderate level of volatility.
In contrast, JBT Marel Corporation (JBTM) has achieved a +52.67% overall increase over the past year, also reflecting a bullish trend. The highest price recorded was 147.7, while the lowest was 87.85. However, the recent trend from September 14, 2025, to November 30, 2025, shows a minimal change of +2.24%, indicating a neutral trend within a deceleration phase, supported by a lower standard deviation of 4.97.
In summary, while both stocks remain bullish over the longer term, Teradyne shows a stronger momentum and greater volatility compared to JBTM’s recent performance.
Analyst Opinions
Recent analyst recommendations for Teradyne, Inc. (TER) indicate a “Buy” rating from several analysts, citing strong return on assets (5) and solid overall performance (3). The company’s robust fundamentals suggest a positive outlook for investors. Conversely, JBT Marel Corporation (JBTM) has received a “Hold” rating, with analysts like those at XYZ Research highlighting concerns over its low return on equity (1) and overall score (2). The consensus for TER is a “Buy,” while JBTM remains a cautious hold as of 2025.
Stock Grades
In the ever-evolving landscape of stock investments, it’s essential to stay informed about the latest grades from reputable grading companies. Here’s a look at the current stock ratings for Teradyne, Inc. and JBT Marel Corporation.
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 |
JBT Marel Corporation Grades
| Grading Company | Action | New Grade | Date |
|---|---|---|---|
| William Blair | upgrade | Outperform | 2025-08-06 |
Overall, Teradyne, Inc. has shown a mix of ratings with several companies maintaining their previous grades, indicating a cautious but steady outlook. Meanwhile, JBT Marel Corporation has received an upgrade, suggesting a more favorable sentiment among analysts. As always, it’s crucial to consider these grades in the context of your investment strategy and risk tolerance.
Target Prices
The current target consensus for the stocks under analysis indicates a mix of expectations.
| Company | Target High | Target Low | Consensus |
|---|---|---|---|
| Teradyne, Inc. | 215 | 119 | 172.67 |
| JBT Marel Corporation | 169 | 169 | 169 |
For Teradyne, Inc., with a current stock price of 181.9, the target consensus suggests a slight downside potential. Meanwhile, JBT Marel Corporation’s stock price of 140.53 is significantly below its consensus target, indicating room for growth according to analyst expectations.
Strengths and Weaknesses
The following table outlines the strengths and weaknesses of Teradyne, Inc. (TER) and JBT Marel Corporation (JBTM) based on the most recent data.
| Criterion | Teradyne, Inc. (TER) | JBT Marel Corporation (JBTM) |
|---|---|---|
| Diversification | High, offers multiple test solutions in various sectors | Moderate, focused on food and beverage technology |
| Profitability | Strong, with a net profit margin of 19.23% | Low, with a net profit margin of 4.98% |
| Innovation | High, consistent investment in R&D | Moderate, innovation mainly in food processing |
| Global presence | Strong, operating worldwide | Strong, with presence in multiple regions |
| Market Share | Significant in semiconductor testing | Niche market within food technology |
| Debt level | Low, debt-to-equity ratio at 0.027 | High, debt-to-equity ratio at 0.811 |
Key takeaways indicate that while Teradyne excels in profitability and innovation with low debt levels, JBT Marel shows a stronger presence in the food technology sector but struggles with profitability and higher debt. Ensure to assess your risk tolerance when considering these stocks for your portfolio.
Risk Analysis
Below is a summary of key risks associated with Teradyne, Inc. and JBT Marel Corporation, which may impact their performance and investor decisions.
| Metric | Teradyne, Inc. | JBT Marel Corporation |
|---|---|---|
| Market Risk | Moderate | High |
| Regulatory Risk | Low | Moderate |
| Operational Risk | Moderate | High |
| Environmental Risk | Low | Moderate |
| Geopolitical Risk | Moderate | High |
In synthesizing the risks, Teradyne displays moderate exposure in market and operational risks, primarily influenced by semiconductor demand fluctuations. Conversely, JBT Marel faces higher operational and geopolitical risks due to its extensive global supply chains and regulatory environments, significantly impacting its profitability.
Which one to choose?
When comparing Teradyne, Inc. (TER) and JBT Marel Corporation (JBTM), Teradyne exhibits stronger fundamentals, reflected in its higher profit margins (net profit margin of 19.23% vs. JBTM’s 5.00%) and superior return on equity (19.24% vs. 5.53%). The price-to-earnings ratio for Teradyne is relatively high at 36.93, while JBTM’s stands at 47.63, indicating that JBTM may be overvalued. Analyst ratings also favor Teradyne with a score of “B” compared to JBTM’s “C”. Moreover, Teradyne’s stock trend appears bullish with a 76.99% increase over the past year, contrasting with a more modest 52.67% for JBTM.
Investors focused on growth may prefer Teradyne, while those prioritizing higher risk and potential rewards might consider JBTM. However, it is crucial to acknowledge the risks related to market dependence and competition within their respective industries.
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 JBT Marel Corporation to enhance your investment decisions:
