Allied Motion Technologies (NASDAQ: AMOT) and Teradyne (NYSE:TER) are both computer and technology companies, but which is the superior stock? We will compare the two businesses based on the strength of their analyst recommendations, valuation, profitability, institutional ownership, risk, dividends and earnings.
Risk & Volatility
Allied Motion Technologies has a beta of 1.81, suggesting that its stock price is 81% more volatile than the S&P 500. Comparatively, Teradyne has a beta of 1.13, suggesting that its stock price is 13% more volatile than the S&P 500.
Allied Motion Technologies pays an annual dividend of $0.10 per share and has a dividend yield of 0.2%. Teradyne pays an annual dividend of $0.36 per share and has a dividend yield of 0.8%. Allied Motion Technologies pays out 8.2% of its earnings in the form of a dividend. Teradyne pays out 15.4% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Teradyne has increased its dividend for 3 consecutive years. Teradyne is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Insider and Institutional Ownership
44.6% of Allied Motion Technologies shares are owned by institutional investors. Comparatively, 98.6% of Teradyne shares are owned by institutional investors. 22.9% of Allied Motion Technologies shares are owned by insiders. Comparatively, 0.5% of Teradyne shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.
This table compares Allied Motion Technologies and Teradyne’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Allied Motion Technologies||3.19%||13.61%||6.03%|
This is a summary of current recommendations for Allied Motion Technologies and Teradyne, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Allied Motion Technologies||0||0||0||0||N/A|
Teradyne has a consensus target price of $48.50, suggesting a potential upside of 10.96%. Given Teradyne’s higher probable upside, analysts clearly believe Teradyne is more favorable than Allied Motion Technologies.
Valuation & Earnings
This table compares Allied Motion Technologies and Teradyne’s revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Allied Motion Technologies||$252.01 million||1.54||$8.03 million||$1.22||33.69|
|Teradyne||$2.14 billion||4.00||$257.69 million||$2.34||18.68|
Teradyne has higher revenue and earnings than Allied Motion Technologies. Teradyne is trading at a lower price-to-earnings ratio than Allied Motion Technologies, indicating that it is currently the more affordable of the two stocks.
Teradyne beats Allied Motion Technologies on 12 of the 16 factors compared between the two stocks.
Allied Motion Technologies Company Profile
Allied Motion Technologies, Inc. designs, manufactures, and sells precision and specialty motion control components and systems that are used in a range of industries worldwide. It provides automotive brushless (BL) DC motors, power steering solutions, and special purpose motors; fractional horsepower permanent magnet DC and BLDC motors serving a range of original equipment applications; and high performance BLDC motors, including servo motors, frameless motors, torque motors, slot less motors, high resolution encoders, and motor/encoder assemblies. The company also offers gearing solutions in stand-alone and integrated gearing/motor configurations; and advanced electronic motion control products and custom solutions, including integrated power electronics, digital controls, and network communications for motor control and power conversion. In addition, it provides fractional horsepower BLDC outer rotor motors and traditional BLDC motor part sets; synchronous BLDC servo motor solutions and asynchronous BLDC motors; and trolleys for use in medical environments, as well as electronic controls and platform based integrated steering system solutions. The company sells its products to end customers and original equipment manufacturers in vehicle, medical, aerospace and defense, and electronics/industrial markets through direct sales force, as well as authorized manufacturers' representatives, agents, and distributors. Allied Motion Technologies Inc. was founded in 1962 and is headquartered in Amherst, New York.
Teradyne Company Profile
Teradyne, Inc. designs, develops, manufactures, sells, and supports automatic test equipment worldwide. Its Semiconductor Test segment offers semiconductor test products and services for wafer level and device package testing in automotive, industrial, communications, consumer, computer and electronic game, and other applications. This segment offers FLEX test platform systems; J750 test system to address the highest volume semiconductor devices; Magnum platform that tests memory devices, such as flash memory and DRAM; and ETS platform for use by semiconductor manufacturers, and assembly and test subcontractors in the analog/mixed signal markets. This segment 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 outsourced semiconductor assembly and test providers. The company's System Test segment offers defense/aerospace test instrumentation and systems; storage test systems; and circuit-board test and inspection systems. Its Industrial Automation segment provides collaborative robots for manufacturing and light industrial customers. The company's Wireless Test segment provides test solutions for use in the development and manufacture of wireless devices, smart phones, tablets, notebooks, laptops, peripherals, and Internet-of-Things (IoT) devices under the LitePoint brand name. This segment offers IQxel products for Wi-Fi and other standards; IQxstream solution for testing GSM, EDGE, CDMA2000, TD-SCDMA, WCDMA, HSPA+, LTE-FDD, TD_LTE, and LTE-A technologies; modular wireless test instruments for design verification test and production testing of wireless components; lab-in-a-box zSeries solution for design verification of RF power amplifier and smart device RF front end modules; and test software for wireless chipsets. The company was founded in 1960 and is headquartered in North Reading, Massachusetts.
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