MG vs. TER: Which Stock Is the Better Value Option?
ZACKS·2025-11-10 17:49

Core Viewpoint - The article compares two stocks, Mistras (MG) and Teradyne (TER), to determine which is more attractive to value investors based on their valuation metrics and earnings outlooks [1][3]. Valuation Metrics - MG has a forward P/E ratio of 14.66, while TER has a significantly higher forward P/E of 52.68 [5]. - MG's PEG ratio is 0.92, indicating it is potentially undervalued relative to its expected earnings growth, whereas TER's PEG ratio is 1.93 [5]. - MG's P/B ratio stands at 1.66, suggesting a lower market value compared to its book value, while TER has a much higher P/B ratio of 10.51 [6]. Earnings Outlook - Both MG and TER hold a Zacks Rank of 2 (Buy), indicating a positive earnings outlook supported by favorable analyst estimate revisions [3]. - Despite both stocks having solid earnings outlooks, MG is identified as the superior value option based on its more favorable valuation figures [7].