Onto Innovation vs Teradyne

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KIRA’s take AI analyst

I put Onto Innovation and Teradyne side by side, using each one’s latest annual report. Here is what stands out:

Teradyne is the larger business, with $3.2B of revenue in fiscal 2025 against $1.0B for Onto Innovation, about 3.2 times as much.
Teradyne grew revenue faster (13.1%, against 1.8%).
Teradyne kept more of each dollar of sales as operating profit (20.4% operating margin, against 13.2%).
Onto Innovation turned more of its sales into free cash flow (29.8% FCF margin, against 14.1%).
Teradyne earned a higher return on the capital invested in it (23.0%, against 8.8%).

Who comes out ahead

Of the 11 measures where higher (or lower) is clearly better, how many each company leads.

Onto Innovation

ONTO

3/11

5-year growthFCF marginNet debt / EBITDA

Teradyne

TER

8/11

Revenue growthGross marginOperating marginNet marginReturn on capitalReturn on equityPiotroski F-scoreShare count change

Side by side

Best in the row

Latest fiscal year	ONTO FY25	TER FY25
Size
Market cap	$9.9B	$49.3B
Revenue	$1.0B	$3.2B
Free cash flow	$300M	$450M
Net income	$137M	$554M
Growth
Revenue growth	1.8%	13.1%
5-year growth	12.6%	0.4%
Share count change	−0.8%	−2.2%
Profitability
Gross margin	49.7%	58.2%
Operating margin	13.2%	20.4%
Net margin	13.6%	17.4%
FCF margin	29.8%	14.1%
Return on capital	8.8%	23.0%
Return on equity	6.8%	19.7%
Balance sheet
Net debt	−$640M	−$93.8M
Net debt / EBITDA	−3.3x	−0.1x
Dividends and buybacks	$75.0M	$778M
Valuation & quality
P/E	74.7x	—
Piotroski F-score	4	5

Ten years

Revenue

FY16

ONTO $221M

TER $1.8B

FY17

ONTO $259M

TER $2.1B

FY18

ONTO $325M

TER $2.1B

FY19

ONTO $306M

TER $2.3B

FY20

ONTO $557M

TER $3.1B

FY21

ONTO $789M

TER $3.7B

FY22

ONTO $1.0B

TER $3.2B

FY23

ONTO $816M

TER $2.7B

FY24

ONTO $987M

TER $2.8B

FY25

ONTO $1.0B

TER $3.2B

FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24 FY25

ONTO TER

Operating margin

FY16

ONTO 13.2%

TER −3.6%

FY17

ONTO 16.6%

TER 24.6%

FY18

ONTO 20.5%

TER 22.6%

FY19

ONTO −1.7%

TER 24.1%

FY20

ONTO −4.8%

TER 29.7%

FY21

ONTO −19.8%

TER 32.4%

FY22

ONTO 23.6%

TER 26.4%

FY23

ONTO 14.2%

TER 18.7%

FY24

ONTO 19.0%

TER 21.1%

FY25

ONTO 13.2%

TER 20.4%

FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24 FY25

ONTO TER

Free cash flow

FY16

ONTO $41.7M

TER $370M

FY17

ONTO $15.4M

TER $521M

FY18

ONTO $95.9M

TER $363M

FY19

ONTO $11.3M

TER $444M

FY20

ONTO $102M

TER $684M

FY21

ONTO $163M

TER $966M

FY22

ONTO $118M

TER $415M

FY23

ONTO $149M

TER $426M

FY24

ONTO $214M

TER $474M

FY25

ONTO $300M

TER $450M

FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24 FY25

ONTO TER

Return on capital

FY16

ONTO 21.7%

TER −2.8%

FY17

ONTO 19.3%

TER 14.0%

FY18

ONTO 37.1%

TER 31.9%

FY19

ONTO −0.7%

TER 47.4%

FY20

ONTO −2.3%

TER 57.6%

FY21

ONTO −13.7%

TER 64.5%

FY22

ONTO 22.3%

TER 44.3%

FY23

ONTO 10.2%

TER 25.1%

FY24

ONTO 16.2%

TER 26.6%

FY25

ONTO 8.8%

TER 23.0%

FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24 FY25

ONTO TER

Each company's latest fiscal year; fiscal years end in different months. The best value in each row is highlighted where higher (or lower) is clearly better. Not investment advice.