Fortive Corporation (FTV) vs MKS Inc. (MKSI)

Fortive Corporation and MKS Inc. are both Scientific & Technical Instruments companies. Fortive Corporation is the larger, with a market value of $19.5B against $12.0B — 1.6× the size. MKS Inc. trades at the lower P/E: 21.5× against 30.7×. MKS Inc. grew revenue faster over the last twelve months: 24.6% against 6.98%. Fortive Corporation has the higher net margin (14.8% vs 12.6%) and the lower return on invested capital (5.93% vs 8.51%). Both pay a dividend; MKS Inc. yields more (0.51% vs 0.38%). Across the 23 metrics below, MKS Inc. leads on 13 and Fortive Corporation on 10.

Valuation

Metric FTV MKSI Scientific & Technical Instruments median
P/E 30.73 21.51 28.21
P/S 4.46 2.72 4.46
P/B 3.29 3.95 3.10
Price to free cash flow 18.06 23.39 24.15
EV/EBITDA 18.00 15.37 18.28
EV/Sales 5.38 3.37 4.64
Earnings yield 3.25% 4.65% 0.68%
Free cash flow yield 5.54% 4.28% 1.98%

Profitability

Metric FTV MKSI Scientific & Technical Instruments median
Gross margin 63.47% 47.24% 47.24%
Operating margin 19.63% 18.23% 8.96%
Net margin 14.83% 12.61% 1.92%
Free cash flow margin 24.69% 11.63% 10.59%
Return on equity 10.46% 20.46% 2.66%
Return on assets 5.57% 6.69% 1.12%
Return on invested capital 5.93% 8.51% 4.79%

Growth

Metric FTV MKSI Scientific & Technical Instruments median
Revenue growth (TTM) 6.98% 24.56% 9.26%
EPS growth (last fiscal year) (26.69%) 55.52% 13.24%
Revenue growth, 5-year CAGR (2.14%) 11.03% 7.89%
Net income growth, 5-year CAGR (17.81%) (3.36%) 0.00%

Health

Metric FTV MKSI Scientific & Technical Instruments median
Debt to equity 0.59 1.15 0.00
Current ratio 1.23 1.19 2.30
Net debt to EBITDA 2.44 3.93 0.45

Dividend

Metric FTV MKSI Scientific & Technical Instruments median
Dividend yield 0.38% 0.51% 0.62%
Payout ratio 0.12 0.12 0.22

Size

Metric FTV MKSI Scientific & Technical Instruments median
Market cap 19.47b 11.96b 549.07m

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