Cognex Corporation (CGNX) vs MKS Inc. (MKSI)

Cognex Corporation and MKS Inc. are both Scientific & Technical Instruments companies. MKS Inc. is the larger, with a market value of $12.0B against $8.0B — 1.5× the size. MKS Inc. trades at the lower P/E: 21.5× against 32.8×. MKS Inc. grew revenue faster over the last twelve months: 24.6% against 15.8%. Cognex Corporation has the higher net margin (21.5% vs 12.6%) and the higher return on invested capital (17.2% vs 8.51%). Both pay a dividend; Cognex Corporation yields more (0.72% vs 0.51%). Across the 23 metrics below, MKS Inc. leads on 13 and Cognex Corporation on 10.

Valuation

Metric CGNX MKSI Scientific & Technical Instruments median
P/E 32.78 21.51 28.21
P/S 7.08 2.72 4.46
P/B 4.63 3.95 3.10
Price to free cash flow 28.22 23.39 24.15
EV/EBITDA 27.26 15.37 18.28
EV/Sales 6.46 3.37 4.64
Earnings yield 3.05% 4.65% 0.68%
Free cash flow yield 3.54% 4.28% 1.98%

Profitability

Metric CGNX MKSI Scientific & Technical Instruments median
Gross margin 69.69% 47.24% 47.24%
Operating margin 25.01% 18.23% 8.96%
Net margin 21.50% 12.61% 1.92%
Free cash flow margin 26.01% 11.63% 10.59%
Return on equity 15.07% 20.46% 2.66%
Return on assets 11.31% 6.69% 1.12%
Return on invested capital 17.15% 8.51% 4.79%

Growth

Metric CGNX MKSI Scientific & Technical Instruments median
Revenue growth (TTM) 15.82% 24.56% 9.26%
EPS growth (last fiscal year) 9.68% 55.52% 13.24%
Revenue growth, 5-year CAGR 4.16% 11.03% 7.89%
Net income growth, 5-year CAGR (8.27%) (3.36%) 0.00%

Health

Metric CGNX MKSI Scientific & Technical Instruments median
Debt to equity 0.00 1.15 0.00
Current ratio 5.04 1.19 2.30
Net debt to EBITDA (1.75) 3.93 0.45

Dividend

Metric CGNX MKSI Scientific & Technical Instruments median
Dividend yield 0.72% 0.51% 0.62%
Payout ratio 0.24 0.12 0.22

Size

Metric CGNX MKSI Scientific & Technical Instruments median
Market cap 7.99b 11.96b 549.07m

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