Reviewing Teradyne (NASDAQ:TER) and Sigma Lithium (NASDAQ:SGML)

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

Institutional & Insider Ownership

64.9% of Sigma Lithium shares are held by institutional investors. Comparatively, 99.8% of Teradyne shares are held by institutional investors. 48.6% of Sigma Lithium shares are held by company insiders. Comparatively, 0.2% of Teradyne shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Volatility & Risk

Sigma Lithium has a beta of 0.54, suggesting that its stock price is 46% less volatile than the S&P 500. Comparatively, Teradyne has a beta of 1.79, suggesting that its stock price is 79% more volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Sigma Lithium	-41.84%	-57.50%	-13.50%
Teradyne	22.55%	31.79%	22.36%

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Sigma Lithium and Teradyne, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Sigma Lithium	2	0	3	1	2.50
Teradyne	0	3	12	1	2.88

Sigma Lithium currently has a consensus price target of $18.50, indicating a potential upside of 22.03%. Teradyne has a consensus price target of $339.80, indicating a potential downside of 17.06%. Given Sigma Lithium’s higher possible upside, equities research analysts plainly believe Sigma Lithium is more favorable than Teradyne.

Earnings & Valuation

This table compares Sigma Lithium and Teradyne”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Sigma Lithium	$110.01 million	15.35	-$50.19 million	($0.39)	-38.87
Teradyne	$3.19 billion	20.10	$554.05 million	$5.40	75.86

Teradyne has higher revenue and earnings than Sigma Lithium. Sigma Lithium is trading at a lower price-to-earnings ratio than Teradyne, indicating that it is currently the more affordable of the two stocks.

Summary

Teradyne beats Sigma Lithium on 12 of the 14 factors compared between the two stocks.

About Sigma Lithium

Sigma Lithium Corporation engages in the exploration and development of lithium deposits in Brazil. It holds a 100% interest in the Grota do Cirilo, Genipapo, Santa Clara, and São José properties comprising 29 mineral rights covering an area of approximately 185 square kilometers located in the Araçuaí and Itinga regions of the state of Minas Gerais, Brazil. It serves electric vehicle industries worldwide. The company was formerly known as Sigma Lithium Resources Corporation and changed its name to Sigma Lithium Corporation in July 2021. The company is headquartered in São Paulo, Brazil.

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.