NOVONIX (NASDAQ:NVX) & Teradyne (NASDAQ:TER) Financial Review

NOVONIX (NASDAQ:NVX) and Teradyne (NASDAQ:TER) are both computer and technology companies, but which is the superior investment? We will contrast the two businesses based on the strength of their risk, institutional ownership, analyst recommendations, earnings, profitability, valuation and dividends.

Analyst Recommendations

This is a summary of current ratings and target prices for NOVONIX and Teradyne, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
NOVONIX	1	0	0	0	1.00
Teradyne	0	3	12	1	2.88

Teradyne has a consensus target price of $339.80, suggesting a potential downside of 9.22%. Given Teradyne’s stronger consensus rating and higher probable upside, analysts plainly believe Teradyne is more favorable than NOVONIX.

Volatility and Risk

NOVONIX has a beta of 2.52, indicating that its stock price is 152% more volatile than the S&P 500. Comparatively, Teradyne has a beta of 1.79, indicating that its stock price is 79% more volatile than the S&P 500.

Earnings & Valuation

This table compares NOVONIX and Teradyne”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
NOVONIX	$5.62 million	27.43	-$92.72 million	N/A	N/A
Teradyne	$3.19 billion	18.37	$554.05 million	$5.40	69.32

Teradyne has higher revenue and earnings than NOVONIX.

Profitability

This table compares NOVONIX and Teradyne’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
NOVONIX	N/A	N/A	N/A
Teradyne	22.55%	31.79%	22.36%

Insider and Institutional Ownership

0.1% of NOVONIX shares are owned by institutional investors. Comparatively, 99.8% of Teradyne shares are owned by institutional investors. 23.7% of NOVONIX shares are owned by company insiders. Comparatively, 0.2% of Teradyne shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Summary

Teradyne beats NOVONIX on 10 of the 13 factors compared between the two stocks.

About NOVONIX

NOVONIX Limited provides battery materials and development technology for battery manufacturers, materials companies, automotive original equipment manufacturers (OEMs), and consumer electronics manufacturers in North America, Asia, Australia, and Europe. It operates through Battery Materials and Battery Technology segments. The Battery Materials segment develops and manufactures battery anode materials. The Battery Technology segment develops battery cell testing equipment, performs consulting services, and carries out research and development in battery development. The company is involved in the investment and real estate borrowing activities; and offers battery technology, battery testing hardware equipment, and battery testing and development consulting services. The company was formerly known as Graphitecorp Limited and changed its name to NOVONIX Limited in July 2017. NOVONIX Limited was incorporated in 2012 and is based in Brisbane, Australia.

About Teradyne

Teradyne, Inc. designs, develops, manufactures, and sells automated test systems and robotics products worldwide. It operates through four segments; Semiconductor Test, System Test, Robotics, and Wireless Test. The Semiconductor Test segment offers products and services for wafer level and device package testing of semiconductor devices in automotive, industrial, communications, consumer, smartphones, cloud, computer and electronic game, and other applications. This segment also provides FLEX test platform systems; J750 test system to address the volume semiconductor devices, including microcontrollers; Magnum platform that tests memory devices, such as flash memory and DRAM; and ETS platform for semiconductor manufacturers, and assembly and test subcontractors in the analog/mixed signal markets. It serves integrated device manufacturers that integrate the fabrication of silicon wafers into their business; fabless companies that outsource the manufacturing of silicon wafers; foundries; and semiconductor assembly and test providers. The System Test segment offers defense/aerospace test instrumentation and systems; storage and system level test systems; and circuit-board test and inspection systems. The Wireless Test segment provides wireless test solutions for silicon validation, wireless module manufacturing, and wireless end device manufacturing under the LitePoint brand. This segment also offers IQxel-MX and IQxel-MW7G series products for edge measurement performance in the manufacturing of connectivity products; IQxstream-5G and IQgig-5G family products to support 4G and 5G technologies; and IQgig-UWB+ for certification and manufacturing test support for ultra wideband products. The Robotics segment provides collaborative robotic arms, autonomous mobile robots, and advanced robotic control software for manufacturing, logistics, and industrial customers. The company was incorporated in 1960 and is headquartered in North Reading, Massachusetts.