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

Fortive Corporation and MKS Inc. are both Scientific & Technical Instruments companies. Fortive Corporation and MKS Inc. are of similar size ($17.7B and $16.7B). Fortive Corporation trades at the lower P/E: 32.6× against 39.9×. Fortive Corporation grew revenue faster over the last twelve months: 43.2% against 16.3%. Fortive Corporation has the higher net margin (12.4% vs 10.1%) and the lower return on invested capital (5.34% vs 6.74%). Both pay a dividend; MKS Inc. yields more (0.77% vs 0.38%). Across the 23 metrics below, Fortive Corporation leads on 15 and MKS Inc. on 8.

Valuation

Metric FTV MKSI Scientific & Technical Instruments median
P/E 32.61 39.94 35.93
P/S 3.95 4.06 4.46
P/B 2.81 5.90 3.00
Price to free cash flow 18.20 38.50 24.96
EV/EBITDA 17.09 20.04 19.60
EV/Sales 4.89 4.82 4.98
Earnings yield 3.07% 2.50% 0.53%
Free cash flow yield 5.50% 2.60% 1.12%

Profitability

Metric FTV MKSI Scientific & Technical Instruments median
Gross margin 63.23% 46.96% 45.75%
Operating margin 18.23% 15.69% 7.34%
Net margin 12.38% 10.12% 1.56%
Free cash flow margin 21.72% 10.53% 5.84%
Return on equity 6.49% 15.88% 2.87%
Return on assets 3.58% 4.95% 0.99%
Return on invested capital 5.34% 6.74% 3.88%

Growth

Metric FTV MKSI Scientific & Technical Instruments median
Revenue growth (TTM) 43.22% 16.26% 11.28%
EPS growth (last fiscal year) (26.69%) 55.52% —
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 0.58 1.32 0.00
Current ratio 1.24 1.14 2.24
Net debt to EBITDA 2.44 3.93 0.44

Dividend

Metric FTV MKSI Scientific & Technical Instruments median
Dividend yield 0.38% 0.77% 0.72%
Payout ratio 0.13 0.12 0.00

Size

Metric FTV MKSI Scientific & Technical Instruments median
Market cap 16.74b 17.71b 483.67m

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