In today’s rapidly evolving technological landscape, the competition between companies in the semiconductor and automation sectors is heating up. I am comparing Teradyne, Inc. (Ticker: TER), a leader in semiconductor test equipment, with Symbotic Inc. (Ticker: SYM), an innovator in warehouse automation technologies. Both companies operate within overlapping markets that prioritize efficiency and innovation. As an investor, it’s crucial to identify which of these companies presents the best potential for growth and returns. Let’s dive into this analysis to discover the more compelling investment opportunity.
Table of contents
Company Overview
Teradyne, Inc. Overview
Teradyne, Inc. is a leader in the semiconductor testing sector, specializing in automatic test equipment that addresses a wide array of applications across several industries. Founded in 1960 and headquartered in North Reading, Massachusetts, Teradyne operates through various segments including Semiconductor Test, System Test, and Industrial Automation, catering to integrated device manufacturers, fabless companies, and semiconductor assembly providers. With a market capitalization of approximately $29.2B, Teradyne is well-positioned to leverage ongoing advancements in technology, particularly in automotive and communications, to enhance its offerings. The company’s commitment to innovation and quality testing solutions ensures it remains a critical partner in the semiconductor supply chain.
Symbotic Inc. Overview
Symbotic Inc. is at the forefront of automation technology, primarily serving retailers and wholesalers in the U.S. The company, established in 2021 and based in Wilmington, Massachusetts, focuses on enhancing warehouse efficiency through its proprietary Symbotic System, a comprehensive automation framework designed to reduce operational costs and optimize inventory management. With a market cap of about $50.6B, Symbotic is rapidly expanding its influence in the industrial machinery sector, driven by increasing demand for automation solutions in logistics and supply chain management.
Key similarities and differences
Both Teradyne and Symbotic focus on automation, yet they operate in distinct sectors; Teradyne specializes in semiconductor testing while Symbotic enhances warehouse efficiency through robotics. Their business models reflect this divergence, with Teradyne catering to semiconductor manufacturers and Symbotic targeting retail and wholesale operations. Despite these differences, both companies share a commitment to innovation and operational efficiency.
Income Statement Comparison
In this section, I’ll provide a detailed comparison of the income statements for Teradyne, Inc. and Symbotic Inc., highlighting key financial metrics from the most recent fiscal year.
| Metric | Teradyne, Inc. (TER) | Symbotic Inc. (SYM) |
|---|---|---|
| Market Cap | 29.22B | 50.59B |
| Revenue | 2.82B | 2.25B |
| EBITDA | 732M | -75M |
| EBIT | 613M | -115M |
| Net Income | 542M | -81M |
| EPS | 3.41 | -0.16 |
| Fiscal Year | 2024 | 2025 |
Interpretation of Income Statement
In the most recent fiscal year, Teradyne experienced a robust revenue growth to 2.82B, up from 2.68B in the previous year, with net income also increasing to 542M. This indicates strong operational efficiency and solid demand for its products, reflected in its high EBITDA margin. Conversely, Symbotic continues to face challenges, posting a revenue increase to 2.25B but still operating at a loss with a net income of -81M. The negative EBITDA suggests that the company may need to reassess its cost structure and operational strategies to achieve profitability. The contrasting performance highlights the importance of considering both growth potential and margin stability when selecting stocks for investment.
Financial Ratios Comparison
In the table below, I present a comparative analysis of the most recent revenue and key financial ratios for Teradyne, Inc. (TER) and Symbotic Inc. (SYM). This comparison can aid in assessing their financial health and investment potential.
| Metric | Teradyne, Inc. (TER) | Symbotic Inc. (SYM) |
|---|---|---|
| ROE | 19.24% | -16.67% |
| ROIC | 17.25% | -17.17% |
| P/E | 36.93 | -70.32 |
| P/B | 7.10 | 11.73 |
| Current Ratio | 2.91 | 1.09 |
| Quick Ratio | 1.84 | 0.99 |
| D/E | 0.03 | 0.00 |
| Debt-to-Assets | 0.02 | 0.00 |
| Interest Coverage | 165.54 | N/A |
| Asset Turnover | 0.76 | 0.94 |
| Fixed Asset Turnover | 4.88 | 19.10 |
| Payout Ratio | 14.09% | 0% |
| Dividend Yield | 0.38% | 0% |
Interpretation of Financial Ratios
Teradyne demonstrates robust financial health with strong ROE, ROIC, and low debt levels, indicating effective management and profitability. In contrast, Symbotic’s negative profitability ratios and high P/B suggest significant challenges. While Symbotic shows potential in asset turnover, its financial instability raises concerns. Investors should weigh these factors carefully before making decisions.
Dividend and Shareholder Returns
Teradyne, Inc. (TER) pays dividends, currently yielding 0.38% with a payout ratio of 14.1%. The dividend per share has shown a positive trend, supported by strong free cash flow, which suggests sustainable distributions. In contrast, Symbotic Inc. (SYM) does not pay dividends due to ongoing losses and a focus on reinvestment for growth. While it does not distribute cash, it has engaged in share buybacks, indicating a commitment to enhancing shareholder value. Overall, TER’s approach is more conducive to long-term value creation compared to SYM’s current strategy.
Strategic Positioning
In the semiconductor sector, Teradyne, Inc. (TER) holds a significant market share, primarily through its diverse testing solutions that cater to various applications, including automotive and consumer electronics. Meanwhile, Symbotic Inc. (SYM) is carving a niche in the industrial machinery market with its innovative warehouse automation systems. Both companies face competitive pressure from traditional players and new entrants, while technological advancements continue to disrupt their respective fields, necessitating ongoing adaptation and innovation to maintain their market positions.
Stock Comparison
In this section, I will analyze the stock price movements of Teradyne, Inc. (TER) and Symbotic Inc. (SYM) over the past year, focusing on their significant price changes and trading dynamics.
Trend Analysis
Teradyne, Inc. (TER) Over the past year, TER has experienced a price change of +76.99%. This significant increase denotes a bullish trend, supported by acceleration in price movement. The stock reached a high of 182.28 and a low of 68.72, indicating notable volatility with a standard deviation of 24.53. In the recent period from September 14, 2025, to November 30, 2025, the price change was +62.05%, with a standard deviation of 23.47, suggesting continued upward momentum.
Symbotic Inc. (SYM) Similarly, SYM has shown a remarkable price change of +93.06% over the past year, also reflecting a bullish trend with acceleration. The stock’s highest price was 83.77, while the lowest was 17.5, resulting in a standard deviation of 14.0, indicating some volatility. During the recent period from September 14, 2025, to November 30, 2025, SYM’s price change was +75.43%, with a standard deviation of 10.52, further confirming sustained positive performance.
Analyst Opinions
Recent recommendations for Teradyne, Inc. (TER) indicate a consensus “buy” rating, primarily due to its strong return on assets (5) and overall solid financial health, as noted by analysts. In contrast, Symbotic Inc. (SYM) has received a “hold” rating, with concerns over its low return on equity (1) and overall performance score (2). Analysts suggest caution with SYM, highlighting the need for improvement in key financial metrics. Therefore, for 2025, the overall sentiment leans towards buying TER while holding SYM.
Stock Grades
In the current landscape, stock ratings provide invaluable insights into potential investment strategies. Below, I present the latest grades for Teradyne, Inc. and Symbotic Inc., sourced from reputable grading companies.
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 |
Symbotic Inc. Grades
| Grading Company | Action | New Grade | Date |
|---|---|---|---|
| Barclays | maintain | Underweight | 2025-11-26 |
| Baird | maintain | Neutral | 2025-11-26 |
| Citigroup | maintain | Buy | 2025-11-25 |
| Northland Capital Markets | maintain | Outperform | 2025-11-25 |
| Cantor Fitzgerald | maintain | Overweight | 2025-11-25 |
| DA Davidson | maintain | Neutral | 2025-11-25 |
| Craig-Hallum | upgrade | Buy | 2025-11-25 |
| UBS | downgrade | Sell | 2025-09-23 |
| DA Davidson | downgrade | Neutral | 2025-08-25 |
| Needham | maintain | Buy | 2025-08-07 |
Overall, I observe a mixed trend in the grades. Teradyne maintains stable support from several analysts with multiple “Buy” ratings, while Symbotic shows a more varied sentiment, including upgrades and downgrades, suggesting a more cautious approach may be warranted.
Target Prices
The consensus target prices for Teradyne, Inc. and Symbotic Inc. indicate positive expectations from analysts.
| Company | Target High | Target Low | Consensus |
|---|---|---|---|
| Teradyne, Inc. | 215 | 119 | 172.67 |
| Symbotic Inc. | 83 | 41 | 67.38 |
For Teradyne, the current stock price of 181.9 is above the consensus target, suggesting an optimistic outlook. Symbotic’s stock price at 83.77 closely aligns with its consensus target of 67.38, indicating a favorable sentiment as well.
Strengths and Weaknesses
The following table summarizes the strengths and weaknesses of Teradyne, Inc. (TER) and Symbotic Inc. (SYM), based on recent financial data and market performance.
| Criterion | Teradyne, Inc. (TER) | Symbotic Inc. (SYM) |
|---|---|---|
| Diversification | Strong presence across semiconductor testing, automation, and wireless devices | Focused on warehouse automation with limited product range |
| Profitability | High net profit margin (19.2%) | Negative net profit margin (-3.6%) |
| Innovation | Strong R&D investment in advanced testing solutions | Emerging technology with significant room for improvement |
| Global presence | Established global operations | Primarily US-focused |
| Market Share | Leading in semiconductor testing market | Growing presence but currently low market share |
| Debt level | Very low debt (debt to equity ratio: 0.027) | No reported debt but high financial leverage |
Key takeaways: Teradyne demonstrates strong profitability and low debt, making it a stable investment. In contrast, Symbotic, while innovative, faces challenges with profitability and market presence, necessitating careful consideration for investors.
Risk Analysis
In the following table, I outline the key risks that could impact the performance of Teradyne, Inc. and Symbotic Inc., helping you to assess their investment potential.
| Metric | Teradyne, Inc. | Symbotic Inc. |
|---|---|---|
| Market Risk | Moderate | High |
| Regulatory Risk | Low | Moderate |
| Operational Risk | Low | High |
| Environmental Risk | Low | Moderate |
| Geopolitical Risk | Moderate | High |
Both companies face significant market risks, particularly Symbotic, which is more vulnerable due to its reliance on the retail sector. Operational challenges and geopolitical tensions could also impact performance, especially in global supply chains.
Which one to choose?
When comparing Teradyne, Inc. (TER) and Symbotic Inc. (SYM), the fundamental metrics reveal a more stable investment profile in TER. It boasts a net profit margin of 19.2%, a strong current ratio of 2.91, and a low debt-to-equity ratio of 0.03, indicating sound financial health. Conversely, SYM struggles with negative earnings and a high price-to-book ratio of 11.73, reflecting significant valuation concerns.
Analyst ratings further favor TER, which receives a solid “B,” while SYM earns a “C.” The stock trend for both companies is bullish, but TER has shown consistent price growth of 76.99% compared to SYM’s 93.06%, albeit with lower volatility.
For investors focused on stability and consistent performance, TER appears favorable. In contrast, those seeking high-risk, high-reward opportunities may consider SYM, keeping in mind its substantial financial challenges.
Specific risks include SYM’s ongoing operational losses, which may impede growth and profitability.
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 Symbotic Inc. to enhance your investment decisions:
