Coherent Corp. (COHR) vs MKS Inc. (MKSI)

Coherent Corp. and MKS Inc. are both Scientific & Technical Instruments companies. Coherent Corp. is the larger, with a market value of $58.5B against $17.7B — 3.3× the size. MKS Inc. trades at the lower P/E: 39.9× against 68.0×. Coherent Corp. grew revenue faster over the last twelve months: 22.5% against 16.3%. Coherent Corp. has the higher net margin (10.8% vs 10.1%) and the lower return on invested capital (4.21% vs 6.74%). Both pay a dividend; MKS Inc. yields more (0.77% vs 0.10%). Across the 22 metrics below, MKS Inc. leads on 13 and Coherent Corp. on 9.

Valuation

Metric COHR MKSI Scientific & Technical Instruments median
P/E 68.01 39.94 35.93
P/S 7.37 4.06 4.46
P/B 4.67 5.90 3.00
Price to free cash flow n/m 38.50 24.96
EV/EBITDA 38.94 20.04 19.60
EV/Sales 7.54 4.82 4.98
Earnings yield 1.47% 2.50% 0.53%
Free cash flow yield (1.95%) 2.60% 1.12%

Profitability

Metric COHR MKSI Scientific & Technical Instruments median
Gross margin 37.50% 46.96% 45.75%
Operating margin 11.77% 15.69% 7.34%
Net margin 10.82% 10.12% 1.56%
Free cash flow margin (14.38%) 10.53% 5.84%
Return on equity 8.93% 15.88% 2.87%
Return on assets 4.64% 4.95% 0.99%
Return on invested capital 4.21% 6.74% 3.88%

Growth

Metric COHR MKSI Scientific & Technical Instruments median
Revenue growth (TTM) 22.51% 16.26% 11.28%
EPS growth (last fiscal year) 892.31% 55.52% —
Revenue growth, 5-year CAGR 18.04% 11.03% 7.89%
Net income growth, 5-year CAGR 24.22% (3.36%) 0.00%

Health

Metric COHR MKSI Scientific & Technical Instruments median
Debt to equity 0.29 1.32 0.00
Current ratio 2.43 1.14 2.24
Net debt to EBITDA 0.87 3.93 0.44

Dividend

Metric COHR MKSI Scientific & Technical Instruments median
Dividend yield 0.10% 0.77% 0.72%
Payout ratio 0.00 0.12 0.00

Size

Metric COHR MKSI Scientific & Technical Instruments median
Market cap 58.46b 17.71b 483.67m

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