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 $49.4B against $15.5B — 3.2× the size. MKS Inc. trades at the lower P/E: 32.9× against 53.5×. 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%). Across the 21 metrics below, MKS Inc. leads on 12 and Coherent Corp. on 9.

Valuation

Metric COHR MKSI Scientific & Technical Instruments median
P/E 53.54 32.90 33.25
P/S 5.80 3.34 4.50
P/B 3.67 4.86 2.90
Price to free cash flow n/m 31.71 24.81
EV/EBITDA 30.84 17.07 17.92
EV/Sales 5.97 4.11 4.71
Earnings yield 1.87% 3.04% 0.60%
Free cash flow yield (2.48%) 3.15% 1.27%

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% 11.15%
EPS growth (last fiscal year) 892.31% 55.52% 11.47%
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 — 0.45% 0.58%
Payout ratio — 0.15 0.36

Size

Metric COHR MKSI Scientific & Technical Instruments median
Market cap 49.35b 15.45b 444.25m

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