TER vs. ON

Last updated Jun 9, 2026

TER (Teradyne, Inc.) and ON (ON Semiconductor Corporation) are both stocks. Both are in the Technology sector — TER in Semiconductor Equipment & Materials, ON in Semiconductors. Over the past 10 years, TER returned 34.87%/yr vs 28.56%/yr for ON. A 0.58 correlation means they provide meaningful diversification when combined.

Performance

TER vs. ON - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Teradyne, Inc. (TER) and ON Semiconductor Corporation (ON). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, TER achieves a 93.73% return, which is significantly lower than ON's 123.27% return. Over the past 10 years, TER has outperformed ON with an annualized return of 34.87%, while ON has yielded a comparatively lower 28.56% annualized return.

TER

• 1D: 4.68%
• 1M: 4.19%
• YTD: 93.73%
• 6M: 84.73%
• 1Y: 340.75%
• 3Y*: 53.39%
• 5Y*: 25.10%
• 10Y*: 34.87%

ON

• 1D: 3.10%
• 1M: 17.15%
• YTD: 123.27%
• 6M: 114.44%
• 1Y: 140.98%
• 3Y*: 10.74%
• 5Y*: 26.56%
• 10Y*: 28.56%

*Multi-year figures are annualized to reflect compound growth (CAGR)

TER vs. ON - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
TER Teradyne, Inc.	93.73%	54.39%	16.51%	24.78%	-46.35%	36.81%	76.73%	118.93%	-24.37%	66.16%
ON ON Semiconductor Corporation	123.27%	-14.12%	-24.52%	33.93%	-8.17%	107.52%	34.25%	47.67%	-21.16%	64.11%

Correlation

The correlation between TER and ON is 0.57, which is moderate. They share some common price drivers but move independently often enough to provide real diversification benefit when combined.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.57
Correlation (3Y) Calculated over the trailing 3-year period	0.67
Correlation (5Y) Calculated over the trailing 5-year period	0.73
Correlation (10Y) Calculated over the trailing 10-year period	0.72
Correlation (All Time) Calculated using the full available price history since May 2, 2000	0.58

The correlation between TER and ON shifts across timeframes, from 0.57 (1 year) to 0.73 (5 years), reflecting how their relationship changes across market environments.

Fundamentals

Market Cap TER : $59.06B ON : $47.65B
EPS TER : $5.38 ON : $1.42
PE Ratio TER : 69.70 ON : 85.31
PS Ratio TER : 15.72 ON : 8.07
PB Ratio TER : 18.79 ON : 6.53
Total Revenue (TTM) TER : $3.79B ON : $6.06B
Gross Profit (TTM) TER : $2.23B ON : $2.26B
EBITDA (TTM) TER : $1.11B ON : $1.21B

Return for Risk

TER vs. ON — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.

TER

TER Risk / Return Rank: 98
TER Sharpe Ratio Rank: 99
TER Sortino Ratio Rank: 96
TER Omega Ratio Rank: 96
TER Calmar Ratio Rank: 98
TER Martin Ratio Rank: 99

ON

ON Risk / Return Rank: 90
ON Sharpe Ratio Rank: 94
ON Sortino Ratio Rank: 89
ON Omega Ratio Rank: 89
ON Calmar Ratio Rank: 92
ON Martin Ratio Rank: 88

The rank (0–100) shows how this investment's returns compare to the risk taken. Higher = better. Based on the past 12 months of data, combining Sharpe, Sortino, and other metrics used by quantitative funds and institutional investors.

TER vs. ON - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Teradyne, Inc. (TER) and ON Semiconductor Corporation (ON). Risk-adjusted metrics are performance indicators that assess an investment's returns in relation to its risk, enabling a more accurate comparison of different investment options.

	TER	ON	Difference
Sharpe ratio: Return per unit of total volatility	5.19	2.64	+2.55
Sortino ratio: Return per unit of downside risk	4.36	3.06	+1.29
Omega ratio: Gain probability vs. loss probability	1.63	1.40	+0.23
Calmar ratio: Return relative to maximum drawdown	12.85	5.05	+7.80
Martin ratio: Return relative to average drawdown	46.52	10.18	+36.34
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

TER vs. ON - Sharpe Ratio Comparison

The current TER Sharpe Ratio is 5.19, which is higher than the ON Sharpe Ratio of 2.64. The chart below compares the historical Sharpe Ratios of TER and ON, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Sharpe Ratios by Period

	TER	ON	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	5.19	2.64	+2.55
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.51	0.50	0.00
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.78	0.56	+0.21
Sharpe Ratio (All Time) Calculated using the full available price history	0.22	0.11	+0.12

Drawdowns

TER vs. ON - Drawdown Comparison

The maximum TER drawdown since its inception was -97.30%, roughly equal to the maximum ON drawdown of -96.22%. Use the drawdown chart below to compare losses from any high point for TER and ON.

Drawdown Indicators

	TER	ON	Difference
Max Drawdown Largest peak-to-trough decline	-97.30%	-96.22%	-1.08%
Max Drawdown (1Y) Largest decline over 1 year	-26.73%	-28.10%	+1.37%
Max Drawdown (3Y) Largest decline over 3 years	-58.18%	-70.44%	+12.26%
Max Drawdown (5Y) Largest decline over 5 years	-59.12%	-70.44%	+11.32%
Max Drawdown (10Y) Largest decline over 10 years	-59.12%	-70.44%	+11.32%
Current Drawdown Current decline from peak	-10.34%	-9.73%	-0.61%
Average Drawdown Average peak-to-trough decline	-58.69%	-53.21%	-5.48%
Ulcer Index Depth and duration of drawdowns from previous peaks	7.37%	13.90%	-6.53%

Volatility

TER vs. ON - Volatility Comparison

The current volatility for Teradyne, Inc. (TER) is 21.89%, while ON Semiconductor Corporation (ON) has a volatility of 23.24%. This indicates that TER experiences smaller price fluctuations and is considered to be less risky than ON based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	TER	ON	Difference
Volatility (1M) Calculated over the trailing 1-month period	21.89%	23.24%	-1.35%
Volatility (6M) Calculated over the trailing 6-month period	51.74%	39.22%	+12.52%
Volatility (1Y) Calculated over the trailing 1-year period	66.25%	53.86%	+12.39%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	49.92%	53.20%	-3.28%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	45.15%	51.05%	-5.90%

Dividends

TER vs. ON - Dividend Comparison

TER's dividend yield for the trailing twelve months is around 0.13%, while ON has not paid dividends to shareholders.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
ON ON Semiconductor Corporation	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%
TER Teradyne, Inc.	0.13%	0.25%	0.38%	0.41%	0.50%	0.24%	0.33%	0.53%	1.15%	0.67%	0.94%	1.16%

Financials

TER vs. ON - Profitability Comparison

The chart below illustrates the profitability comparison between Teradyne, Inc. and ON Semiconductor Corporation over time, highlighting three key metrics: Gross Profit Margin, Operating Margin, and Net Profit Margin.

TER - Gross Margin

Gross margin is calculated as gross profit divided by revenue. For the three months ending on Jun 2026, Teradyne, Inc. reported a gross profit of 780.95M and revenue of 1.28B. Therefore, the gross margin over that period was 60.9%.

ON - Gross Margin

Gross margin is calculated as gross profit divided by revenue. For the three months ending on Jun 2026, ON Semiconductor Corporation reported a gross profit of 583.10M and revenue of 1.51B. Therefore, the gross margin over that period was 38.5%.

TER - Operating Margin

Operating margin is calculated as operating income divided by revenue. For the three months ending on Jun 2026, Teradyne, Inc. reported an operating income of 473.00M and revenue of 1.28B, resulting in an operating margin of 36.9%.

ON - Operating Margin

Operating margin is calculated as operating income divided by revenue. For the three months ending on Jun 2026, ON Semiconductor Corporation reported an operating income of -53.40M and revenue of 1.51B, resulting in an operating margin of -3.5%.

TER - Net Margin

Net margin is calculated as net income divided by revenue. For the three months ending on Jun 2026, Teradyne, Inc. reported a net income of 398.91M and revenue of 1.28B, resulting in a net margin of 31.1%.

ON - Net Margin

Net margin is calculated as net income divided by revenue. For the three months ending on Jun 2026, ON Semiconductor Corporation reported a net income of -33.40M and revenue of 1.51B, resulting in a net margin of -2.2%.

Frequently Asked Questions

Can I hold both TER and ON in my portfolio?

TER and ON have a correlation of 0.57, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, TER or ON?

ON has higher volatility (23.24%) compared to TER (21.89%). In terms of maximum drawdown, TER dropped -97.30% vs ON's -96.22%.

Which has better risk-adjusted returns?

TER currently has the higher Sharpe Ratio (5.19 vs 2.64), meaning it's delivered slightly more return per unit of risk over the trailing 12 months. However, this ranking shifts over time - use the Risk/Return Score above for a more comprehensive view that combines Sharpe, Sortino, and other measures used by quantitative funds.