Qnity Electronics, Inc. (Q) vs Teradyne, Inc. (TER)

Qnity Electronics, Inc. and Teradyne, Inc. are both Semiconductor Equipment & Materials companies. Teradyne, Inc. is the larger, with a market value of $53.7B against $25.0B — 2.1× the size. Qnity Electronics, Inc. trades at the lower P/E: 41.2× against 44.3×. Teradyne, Inc. has the higher net margin (25.8% vs 11.3%) and the higher return on invested capital (27.0% vs 6.10%). Across the 19 metrics below, Teradyne, Inc. leads on 11 and Qnity Electronics, Inc. on 8.

Valuation

Metric Q TER Semiconductor Equipment & Materials median
P/E 41.20 44.32 45.03
P/S 4.64 11.39 4.64
P/B 3.20 14.63 3.22
Price to free cash flow 29.09 63.54 48.18
EV/EBITDA 19.18 34.23 33.11
EV/Sales 5.23 11.36 5.52
Earnings yield 2.43% 2.26% 1.41%
Free cash flow yield 3.44% 1.57% 1.67%

Profitability

Metric Q TER Semiconductor Equipment & Materials median
Gross margin 46.22% 59.24% 43.95%
Operating margin 19.87% 30.23% 10.32%
Net margin 11.25% 25.77% 7.45%
Free cash flow margin 15.95% 17.92% 6.77%
Return on equity 6.36% 36.45% 4.78%
Return on assets 8.18% 26.48% 3.62%
Return on invested capital 6.10% 27.04% 6.10%

Growth

Metric Q TER Semiconductor Equipment & Materials median
Revenue growth (TTM) — 57.87% 14.60%
EPS growth (last fiscal year) (4.56%) 4.52% (4.56%)
Revenue growth, 5-year CAGR — 0.44% 10.11%
Net income growth, 5-year CAGR — (6.71%) 0.00%

Health

Metric Q TER Semiconductor Equipment & Materials median
Debt to equity 0.53 0.00 0.09
Current ratio 2.01 2.12 3.66
Net debt to EBITDA 2.31 (0.16) (0.49)

Dividend

Metric Q TER Semiconductor Equipment & Materials median
Dividend yield — 0.16% 0.42%
Payout ratio — 0.07 0.19

Size

Metric Q TER Semiconductor Equipment & Materials median
Market cap 25.02b 53.66b 3.80b

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