SHOP vs. TER: A Head-to-Head Stock Comparison
Updated onHere’s a clear look at SHOP and TER, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.
Company Profile
| Symbol | SHOP | TER |
|---|---|---|
| Company Name | Shopify Inc. | Teradyne, Inc. |
| Country | Canada | United States |
| GICS Sector | Information Technology | Information Technology |
| GICS Industry | IT Services | Semiconductors & Semiconductor Equipment |
| Market Capitalization | 188.00 billion USD | 27.10 billion USD |
| Exchange | NasdaqGS | NasdaqGS |
| Listing Date | May 20, 2015 | February 21, 1973 |
| Security Type | Common Stock | Common Stock |
Historical Performance
This chart compares the performance of SHOP and TER by tracking the growth of an initial $10,000 investment in each. Use the tabs to select the desired time period. Data is adjusted for dividends and splits.
Historical Performance at a Glance
| Symbol | SHOP | TER |
|---|---|---|
| 5-Day Price Return | -11.96% | -7.67% |
| 13-Week Price Return | -2.22% | 55.34% |
| 26-Week Price Return | 25.55% | 100.20% |
| 52-Week Price Return | 28.28% | 59.78% |
| Month-to-Date Return | -19.52% | -6.49% |
| Year-to-Date Return | 31.60% | 34.98% |
| 10-Day Avg. Volume | 10.10M | 3.47M |
| 3-Month Avg. Volume | 8.35M | 3.95M |
| 3-Month Volatility | 44.72% | 62.91% |
| Beta | 2.90 | 1.86 |
Profitability
Return on Equity (TTM)
SHOP
15.08%
IT Services Industry
- Max
- 37.08%
- Q3
- 19.28%
- Median
- 14.70%
- Q1
- 6.70%
- Min
- -8.16%
SHOP’s Return on Equity of 15.08% is on par with the norm for the IT Services industry, indicating its profitability relative to shareholder equity is typical for the sector.
TER
15.86%
Semiconductors & Semiconductor Equipment Industry
- Max
- 49.05%
- Q3
- 22.19%
- Median
- 7.96%
- Q1
- 0.99%
- Min
- -15.65%
TER’s Return on Equity of 15.86% is on par with the norm for the Semiconductors & Semiconductor Equipment industry, indicating its profitability relative to shareholder equity is typical for the sector.
Net Profit Margin (TTM)
SHOP
16.65%
IT Services Industry
- Max
- 17.01%
- Q3
- 11.02%
- Median
- 6.91%
- Q1
- 3.07%
- Min
- -5.13%
A Net Profit Margin of 16.65% places SHOP in the upper quartile for the IT Services industry, signifying strong profitability and more effective cost management than most of its peers.
TER
15.49%
Semiconductors & Semiconductor Equipment Industry
- Max
- 52.41%
- Q3
- 24.47%
- Median
- 11.88%
- Q1
- 0.60%
- Min
- -25.46%
TER’s Net Profit Margin of 15.49% is aligned with the median group of its peers in the Semiconductors & Semiconductor Equipment industry. This indicates its ability to convert revenue into profit is typical for the sector.
Operating Profit Margin (TTM)
SHOP
12.17%
IT Services Industry
- Max
- 23.01%
- Q3
- 15.32%
- Median
- 9.57%
- Q1
- 4.91%
- Min
- -9.58%
SHOP’s Operating Profit Margin of 12.17% is around the midpoint for the IT Services industry, indicating that its efficiency in managing core business operations is typical for the sector.
TER
17.85%
Semiconductors & Semiconductor Equipment Industry
- Max
- 58.09%
- Q3
- 27.76%
- Median
- 12.14%
- Q1
- 3.29%
- Min
- -32.60%
TER’s Operating Profit Margin of 17.85% is around the midpoint for the Semiconductors & Semiconductor Equipment industry, indicating that its efficiency in managing core business operations is typical for the sector.
Profitability at a Glance
| Symbol | SHOP | TER |
|---|---|---|
| Return on Equity (TTM) | 15.08% | 15.86% |
| Return on Assets (TTM) | 12.51% | 11.71% |
| Net Profit Margin (TTM) | 16.65% | 15.49% |
| Operating Profit Margin (TTM) | 12.17% | 17.85% |
| Gross Profit Margin (TTM) | 48.75% | 58.92% |
Financial Strength
Current Ratio (MRQ)
SHOP
3.93
IT Services Industry
- Max
- 3.02
- Q3
- 1.91
- Median
- 1.36
- Q1
- 1.02
- Min
- 0.49
SHOP’s Current Ratio of 3.93 is exceptionally high, placing it well outside the typical range for the IT Services industry. This indicates a very strong liquidity position, though such a high ratio may also suggest that the company is not using its assets efficiently to generate profits.
TER
1.76
Semiconductors & Semiconductor Equipment Industry
- Max
- 6.57
- Q3
- 4.28
- Median
- 2.86
- Q1
- 2.22
- Min
- 1.02
TER’s Current Ratio of 1.76 falls into the lower quartile for the Semiconductors & Semiconductor Equipment industry. This indicates a tighter liquidity situation and a more constrained capacity to handle short-term debt than many of its competitors.
Debt-to-Equity Ratio (MRQ)
SHOP
0.07
IT Services Industry
- Max
- 2.55
- Q3
- 1.30
- Median
- 0.55
- Q1
- 0.14
- Min
- 0.00
Falling into the lower quartile for the IT Services industry, SHOP’s Debt-to-Equity Ratio of 0.07 points to a conservative financing strategy. This results in lower financial risk but potentially limits strategic investments compared to more leveraged competitors.
TER
0.07
Semiconductors & Semiconductor Equipment Industry
- Max
- 1.18
- Q3
- 0.48
- Median
- 0.24
- Q1
- 0.01
- Min
- 0.00
TER’s Debt-to-Equity Ratio of 0.07 is typical for the Semiconductors & Semiconductor Equipment industry, indicating its use of leverage is in line with the sector norm. This suggests a balanced approach to its capital structure.
Interest Coverage Ratio (TTM)
SHOP
-0.29
IT Services Industry
- Max
- 129.00
- Q3
- 56.00
- Median
- 11.69
- Q1
- 1.68
- Min
- -28.15
SHOP has a negative Interest Coverage Ratio of -0.29. This indicates that its earnings were insufficient to cover even its operational costs, let alone its interest payments, signaling significant financial distress.
TER
135.68
Semiconductors & Semiconductor Equipment Industry
- Max
- 174.00
- Q3
- 81.21
- Median
- 22.37
- Q1
- 6.43
- Min
- -7.80
TER’s Interest Coverage Ratio of 135.68 is in the upper quartile for the Semiconductors & Semiconductor Equipment industry, signifying a strong and healthy capacity to meet its interest payments from operating profits.
Financial Strength at a Glance
| Symbol | SHOP | TER |
|---|---|---|
| Current Ratio (MRQ) | 3.93 | 1.76 |
| Quick Ratio (MRQ) | 3.93 | 0.92 |
| Debt-to-Equity Ratio (MRQ) | 0.07 | 0.07 |
| Interest Coverage Ratio (TTM) | -0.29 | 135.68 |
Growth
Revenue Growth
EPS Growth
Dividend
Dividend Yield (TTM)
SHOP
0.00%
IT Services Industry
- Max
- 4.66%
- Q3
- 2.02%
- Median
- 0.66%
- Q1
- 0.00%
- Min
- 0.00%
SHOP currently does not pay a dividend, resulting in a yield of 0%. This is a common strategy for growth-focused companies that prioritize reinvesting earnings, though it may be less typical in mature, income-oriented sectors.
TER
0.30%
Semiconductors & Semiconductor Equipment Industry
- Max
- 3.58%
- Q3
- 1.59%
- Median
- 0.61%
- Q1
- 0.00%
- Min
- 0.00%
TER’s Dividend Yield of 0.30% is consistent with its peers in the Semiconductors & Semiconductor Equipment industry, providing a dividend return that is standard for its sector.
Dividend Payout Ratio (TTM)
SHOP
0.00%
IT Services Industry
- Max
- 93.78%
- Q3
- 63.22%
- Median
- 24.64%
- Q1
- 0.00%
- Min
- 0.00%
SHOP has a Dividend Payout Ratio of 0%, indicating it does not currently pay a dividend. This is a common strategy for growth-oriented companies that reinvest all profits back into the business.
TER
17.39%
Semiconductors & Semiconductor Equipment Industry
- Max
- 211.90%
- Q3
- 88.01%
- Median
- 25.84%
- Q1
- 0.00%
- Min
- 0.00%
TER’s Dividend Payout Ratio of 17.39% is within the typical range for the Semiconductors & Semiconductor Equipment industry, suggesting a balanced approach between shareholder payouts and company reinvestment.
Dividend at a Glance
| Symbol | SHOP | TER |
|---|---|---|
| Dividend Yield (TTM) | 0.00% | 0.30% |
| Dividend Payout Ratio (TTM) | 0.00% | 17.39% |
Valuation
Price-to-Earnings Ratio (TTM)
SHOP
104.47
IT Services Industry
- Max
- 45.03
- Q3
- 30.25
- Median
- 21.01
- Q1
- 16.50
- Min
- 0.00
At 104.47, SHOP’s P/E Ratio is exceptionally high, exceeding the typical maximum for the IT Services industry. This suggests the stock may be significantly overvalued compared to its peers and implies high market expectations that could be difficult to meet.
TER
58.91
Semiconductors & Semiconductor Equipment Industry
- Max
- 95.58
- Q3
- 58.67
- Median
- 34.77
- Q1
- 25.45
- Min
- 12.63
A P/E Ratio of 58.91 places TER in the upper quartile for the Semiconductors & Semiconductor Equipment industry. This high valuation relative to peers suggests the market holds elevated expectations for the company’s future growth.
Price-to-Sales Ratio (TTM)
SHOP
17.40
IT Services Industry
- Max
- 5.24
- Q3
- 4.01
- Median
- 2.18
- Q1
- 1.08
- Min
- 0.00
With a P/S Ratio of 17.40, SHOP trades at a valuation that eclipses even the highest in the IT Services industry. This implies the market has priced in exceptionally optimistic scenarios for future revenue growth, posing considerable valuation risk.
TER
9.13
Semiconductors & Semiconductor Equipment Industry
- Max
- 18.34
- Q3
- 10.38
- Median
- 5.38
- Q1
- 2.49
- Min
- 0.32
TER’s P/S Ratio of 9.13 aligns with the market consensus for the Semiconductors & Semiconductor Equipment industry. This suggests its valuation, based on sales, is seen as standard and is on par with its competitors.
Price-to-Book Ratio (MRQ)
SHOP
15.44
IT Services Industry
- Max
- 9.42
- Q3
- 5.79
- Median
- 3.70
- Q1
- 2.30
- Min
- 0.79
At 15.44, SHOP’s P/B Ratio is at an extreme premium to the IT Services industry. This signifies that the market’s valuation is heavily reliant on future potential rather than its current net asset value, which can be a high-risk proposition.
TER
7.86
Semiconductors & Semiconductor Equipment Industry
- Max
- 16.22
- Q3
- 8.33
- Median
- 4.39
- Q1
- 1.79
- Min
- 0.30
TER’s P/B Ratio of 7.86 is within the conventional range for the Semiconductors & Semiconductor Equipment industry. This shows a balanced market view, where the stock’s price is neither at a significant premium nor a discount to the book value of its peers.
Valuation at a Glance
| Symbol | SHOP | TER |
|---|---|---|
| Price-to-Earnings Ratio (TTM) | 104.47 | 58.91 |
| Price-to-Sales Ratio (TTM) | 17.40 | 9.13 |
| Price-to-Book Ratio (MRQ) | 15.44 | 7.86 |
| Price-to-Free Cash Flow Ratio (TTM) | 97.77 | 57.14 |