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 $17.5B against $15.5B — 1.1× the size. MKS Inc. trades at the lower P/E: 32.9× against 33.6×. 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 (0.45% vs 0.43%). Across the 23 metrics below, MKS Inc. leads on 12 and Fortive Corporation on 11.

Valuation

Metric FTV MKSI Scientific & Technical Instruments median
P/E 33.60 32.90 33.25
P/S 4.07 3.34 4.50
P/B 2.90 4.86 2.90
Price to free cash flow 18.75 31.71 24.81
EV/EBITDA 17.51 17.07 17.92
EV/Sales 5.01 4.11 4.71
Earnings yield 2.98% 3.04% 0.60%
Free cash flow yield 5.33% 3.15% 1.27%

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% 11.15%
EPS growth (last fiscal year) (26.69%) 55.52% 11.47%
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 0.43% 0.45% 0.58%
Payout ratio 0.15 0.15 0.36

Size

Metric FTV MKSI Scientific & Technical Instruments median
Market cap 17.45b 15.45b 444.25m

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