In today’s dynamic market landscape, two companies stand out for their distinct yet overlapping innovations: Teradyne, Inc. (TER) and Nordson Corporation (NDSN). Both leaders in their respective fields—semiconductors and industrial machinery—they offer a fascinating glimpse into the future of technology and automation. With their innovative strategies and robust market positions, I aim to dissect their strengths and weaknesses to help you, the investor, determine which company deserves a spot in your portfolio.
Table of contents
Company Overview
Teradyne, Inc. Overview
Teradyne, Inc. is a leader in the semiconductor test equipment industry, providing innovative solutions for testing and automating production processes. Founded in 1960 and headquartered in North Reading, Massachusetts, Teradyne operates through segments such as Semiconductor Test, System Test, Industrial Automation, and Wireless Test. Their products cater to diverse sectors, including automotive, consumer electronics, and industrial automation, demonstrating a strong commitment to technological advancement. With a market capitalization of approximately $32.8B, Teradyne has positioned itself as a vital player in the semiconductor market, serving both integrated device manufacturers and fabless companies. The company’s focus on robust testing solutions is critical as the demand for advanced semiconductor devices continues to grow.
Nordson Corporation Overview
Nordson Corporation, established in 1935 and based in Westlake, Ohio, specializes in the manufacturing of precision dispensing equipment and systems used for applying adhesives, coatings, and other materials. The company operates in two main segments: Industrial Precision Solutions and Advanced Technology Solutions. Nordson’s extensive product offerings serve a wide array of industries, including consumer goods and medical devices, emphasizing their innovative approach to manufacturing processes. With a market cap of around $13.3B, Nordson is recognized for its engineering excellence and is committed to delivering high-quality solutions that meet the evolving needs of its customers.
Key similarities and differences
Both Teradyne and Nordson are established players in their respective industries, focusing on innovation and technological solutions. However, while Teradyne is primarily centered on semiconductor testing, Nordson specializes in dispensing and coating systems across various applications. This distinction highlights their unique market positions and target sectors, with Teradyne leaning towards technology and automation, whereas Nordson emphasizes precision manufacturing and fluid application.
Income Statement Comparison
The following table presents a comparison of the most recent income statements for Teradyne, Inc. and Nordson Corporation, highlighting key financial metrics.
| Metric | Teradyne, Inc. | Nordson Corporation |
|---|---|---|
| Market Cap | 32.77B | 13.27B |
| Revenue | 2.82B | 2.79B |
| EBITDA | 732M | 712M |
| EBIT | 613M | 561M |
| Net Income | 542M | 484M |
| EPS | 3.41 | 8.56 |
| Fiscal Year | 2024 | 2025 |
Interpretation of Income Statement
In the latest fiscal year, Teradyne demonstrated revenue growth to 2.82B, an increase from the previous year, while Nordson also reported a healthy revenue figure of 2.79B. Teradyne’s EBITDA margin improved slightly, reflecting efficient cost management, while Nordson’s net income rose, indicating strong profitability despite a modest revenue increase. Overall, both companies show resilience, with Teradyne benefiting from operational efficiencies, while Nordson’s earnings per share (EPS) remains robust, suggesting solid shareholder returns.
Financial Ratios Comparison
Below is a comparison of key financial ratios for Teradyne, Inc. (TER) and Nordson Corporation (NDSN) based on the most recent data available. This will help in assessing their financial health and performance.
| Metric | Teradyne, Inc. (2024) | Nordson Corporation (2025) |
|---|---|---|
| ROE | 19.2% | 15.9% |
| ROIC | 17.2% | 9.6% |
| P/E | 36.93 | 27.10 |
| P/B | 7.10 | 4.87 |
| Current Ratio | 2.91 | 2.41 |
| Quick Ratio | 1.84 | 1.51 |
| D/E | 0.03 | 0.79 |
| Debt-to-Assets | 0.02 | 0.39 |
| Interest Coverage | 166 | 11.31 |
| Asset Turnover | 0.76 | 0.50 |
| Fixed Asset Turnover | 4.88 | 4.21 |
| Payout ratio | 14.09% | 34.55% |
| Dividend yield | 0.38% | 1.36% |
Interpretation of Financial Ratios
Teradyne exhibits a robust financial position with higher ROE and ROIC compared to Nordson, indicating superior profitability and capital efficiency. The significantly lower debt levels (D/E and debt-to-assets ratios) for Teradyne suggest a conservative approach to leverage, enhancing its stability. However, Nordson offers a higher dividend yield, appealing for income-focused investors. Despite its strong ratios, Teradyne’s higher P/E and P/B ratios may indicate overvaluation, posing potential risks.
Dividend and Shareholder Returns
Teradyne, Inc. (TER) maintains a dividend payout ratio of approximately 14% with a yield of 0.38%, reflecting a stable approach to shareholder returns. The trend in dividends per share is positive, supported by healthy free cash flow. Conversely, Nordson Corporation (NDSN) offers a higher dividend yield of 1.36% but has a higher payout ratio of 37%. Both companies engage in share buyback programs, indicating a commitment to returning value, which supports sustainable long-term growth for shareholders.
Strategic Positioning
Teradyne, Inc. (TER) holds a strong position in the semiconductor testing market, leveraging advanced technologies across various segments, including automotive and wireless testing. With a market cap of $32.77B and a beta of 1.85, it faces competitive pressure from rising players and technological disruptions. In contrast, Nordson Corporation (NDSN), valued at $13.27B, operates in the industrial machinery sector, focusing on precision dispensing systems. Both companies need to navigate intense competition and innovation to maintain their market shares effectively.
Stock Comparison
In this section, I will provide an analysis of the recent stock price movements for Teradyne, Inc. (TER) and Nordson Corporation (NDSN), focusing on key trends and trading dynamics observed over the past year.
Trend Analysis
Teradyne, Inc. (TER) Over the past year, TER has shown a remarkable price change of +87.65%, indicating a bullish trend. The stock reached a notable high of 204.01 and a low of 68.72, demonstrating significant volatility with a standard deviation of 27.24. The recent analysis from September 28, 2025, to December 14, 2025, shows a price increase of 50.77%, with a standard deviation of 24.52, suggesting ongoing acceleration in price movement.
Nordson Corporation (NDSN) In contrast, NDSN has experienced a price change of -6.75% over the past year, reflecting a bearish trend. The stock’s price has fluctuated between a high of 278.89 and a low of 176.73, accompanied by a standard deviation of 23.71, indicating notable volatility. Recently, from September 28, 2025, to December 14, 2025, the stock has shown a slight recovery with a price change of +4.11%, but this still falls within a neutral range, given the overall yearly performance. The trend slope during this period is modest at 0.71, suggesting limited acceleration.
In summary, while TER exhibits strong upward momentum, NDSN remains under pressure, and investors should weigh these dynamics carefully in their decision-making process.
Analyst Opinions
Recent analyst recommendations for Teradyne, Inc. (TER) and Nordson Corporation (NDSN) both reflect a “B+” rating, indicating a consensus to hold. Analysts highlight Teradyne’s strong return on assets (score 5) and robust return on equity (score 4) as positive indicators, while its price-to-book score (1) raises concerns. Similarly, Nordson showcases impressive returns on equity and assets but has a slightly weaker debt-to-equity score (2). Given the current evaluations, both stocks are viewed as stable but not compelling buys for this year.
Stock Grades
Recent stock ratings reveal valuable insights for investors looking to navigate the market effectively.
Teradyne, Inc. Grades
| Grading Company | Action | New Grade | Date |
|---|---|---|---|
| Stifel | Upgrade | Buy | 2025-12-02 |
| Citigroup | Maintain | Buy | 2025-11-12 |
| Goldman Sachs | Maintain | Sell | 2025-10-30 |
| JP Morgan | Maintain | Neutral | 2025-10-30 |
| UBS | Maintain | Buy | 2025-10-30 |
| Evercore ISI Group | Maintain | Outperform | 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 |
Nordson Corporation Grades
| Grading Company | Action | New Grade | Date |
|---|---|---|---|
| Oppenheimer | Maintain | Outperform | 2025-08-25 |
| Baird | Maintain | Neutral | 2025-08-22 |
| Keybanc | Maintain | Overweight | 2025-07-15 |
| Oppenheimer | Upgrade | Outperform | 2025-05-30 |
| Baird | Maintain | Neutral | 2025-05-30 |
| Keybanc | Maintain | Overweight | 2025-04-08 |
| Keybanc | Upgrade | Overweight | 2025-03-04 |
| Baird | Maintain | Neutral | 2025-02-21 |
| Loop Capital | Upgrade | Buy | 2025-01-22 |
| Seaport Global | Upgrade | Buy | 2024-12-17 |
In summary, Teradyne has received a notable upgrade from Stifel to “Buy,” indicating a positive shift in sentiment. Meanwhile, Nordson maintains a steady outlook with consistent ratings of “Outperform” and “Overweight” from various analysts, reflecting investor confidence in its performance.
Target Prices
The consensus target prices for Teradyne, Inc. and Nordson Corporation reflect optimistic outlooks from analysts.
| Company | Target High | Target Low | Consensus |
|---|---|---|---|
| Teradyne, Inc. | 225 | 136 | 184.44 |
| Nordson Corporation | 285 | 240 | 263 |
Analysts expect Teradyne, Inc. to reach a consensus target of 184.44, which is slightly below its current price of 203.995. For Nordson Corporation, the consensus target of 263 indicates potential upside from its current price of 236.19.
Strengths and Weaknesses
The following table outlines the strengths and weaknesses of Teradyne, Inc. (TER) and Nordson Corporation (NDSN) based on the most recent data.
| Criterion | Teradyne, Inc. (TER) | Nordson Corporation (NDSN) |
|---|---|---|
| Diversification | High | Moderate |
| Profitability | Strong (19.23% net margin) | Moderate (17.35% net margin) |
| Innovation | High | Moderate |
| Global presence | Strong | Moderate |
| Market Share | Significant | Moderate |
| Debt level | Low (2.07% debt-to-assets) | Moderate (38.67% debt-to-assets) |
Key takeaways indicate that while Teradyne showcases strong profitability and innovation with minimal debt, Nordson maintains a solid market presence but has a higher debt level. Investors should weigh these factors when considering their positions in these companies.
Risk Analysis
In the following table, I summarize the various risks associated with Company A (Teradyne, Inc.) and Company B (Nordson Corporation) to help you assess their potential impact on investment decisions.
| Metric | Teradyne, Inc. | Nordson Corporation |
|---|---|---|
| Market Risk | Moderate | High |
| Regulatory Risk | Low | Moderate |
| Operational Risk | Moderate | High |
| Environmental Risk | Low | Moderate |
| Geopolitical Risk | Moderate | High |
Both companies face significant market risks, particularly given the economic uncertainties and technological shifts in their industries. Notably, Nordson Corporation has a higher exposure to operational and geopolitical risks, which could impact its profitability.
Which one to choose?
When comparing Teradyne, Inc. (TER) and Nordson Corporation (NDSN), both companies hold a B+ rating, indicating solid fundamentals. TER exhibits stronger growth potential, with a bullish price trend and a remarkable 87.65% price change over the last year, alongside a higher return on equity (RoE) of 19%. In contrast, NDSN shows a bearish trend with a -6.75% price change but maintains a robust return on assets (RoA) of 9.2%. TER’s higher profit margins and better cash flow ratios position it favorably for growth-oriented investors, while NDSN may appeal to those prioritizing stability.
Investors focused on growth may prefer Teradyne, Inc., while those prioritizing stability and dividend yield might favor Nordson Corporation.
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 Nordson Corporation to enhance your investment decisions:
