Garmin Ltd. (GRMN) vs Keysight Technologies Inc. (KEYS)

Garmin Ltd. and Keysight Technologies Inc. are both Scientific & Technical Instruments companies. Garmin Ltd. is the larger, with a market value of $55.2B against $44.4B — 1.2× the size. Garmin Ltd. trades at the lower P/E: 27.2× against 36.9×. Keysight Technologies Inc. grew revenue faster over the last twelve months: 25.5% against 13.6%. Garmin Ltd. has the higher net margin (25.6% vs 19.1%) and the higher return on invested capital (19.7% vs 12.9%). Across the 22 metrics below, Garmin Ltd. leads on 16 and Keysight Technologies Inc. on 6.

Valuation

Metric GRMN KEYS Scientific & Technical Instruments median
P/E 27.24 36.94 28.21
P/S 6.97 7.05 4.46
P/B 5.76 7.06 3.10
Price to free cash flow 37.55 31.11 24.15
EV/EBITDA 21.33 26.85 18.28
EV/Sales 6.68 7.04 4.64
Earnings yield 3.67% 2.71% 0.68%
Free cash flow yield 2.66% 3.21% 1.98%

Profitability

Metric GRMN KEYS Scientific & Technical Instruments median
Gross margin 61.12% 64.69% 47.24%
Operating margin 28.82% 20.25% 8.96%
Net margin 25.58% 19.14% 1.92%
Free cash flow margin 18.61% 22.67% 10.59%
Return on equity 22.38% 20.59% 2.66%
Return on assets 17.92% 11.16% 1.12%
Return on invested capital 19.70% 12.85% 4.79%

Growth

Metric GRMN KEYS Scientific & Technical Instruments median
Revenue growth (TTM) 13.59% 25.54% 9.26%
EPS growth (last fiscal year) 17.67% 39.32% 13.24%
Revenue growth, 5-year CAGR 11.59% 4.95% 7.89%
Net income growth, 5-year CAGR 10.89% 6.27% 0.00%

Health

Metric GRMN KEYS Scientific & Technical Instruments median
Debt to equity 0.00 0.38 0.00
Current ratio 3.05 2.02 2.30
Net debt to EBITDA (1.33) 0.57 0.45

Dividend

Metric GRMN KEYS Scientific & Technical Instruments median
Dividend yield 1.37% — 0.62%
Payout ratio 0.37 — 0.22

Size

Metric GRMN KEYS Scientific & Technical Instruments median
Market cap 55.19b 44.37b 549.07m

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