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

Garmin Ltd. and Keysight Technologies Inc. are both Scientific & Technical Instruments companies. Garmin Ltd. and Keysight Technologies Inc. are of similar size ($61.0B and $57.3B). Garmin Ltd. trades at the lower P/E: 30.2× against 49.3×. Keysight Technologies Inc. grew revenue faster over the last twelve months: 25.5% against 13.5%. Garmin Ltd. has the higher net margin (24.5% vs 19.1%) and the higher return on invested capital (20.8% vs 12.9%). Across the 22 metrics below, Garmin Ltd. leads on 18 and Keysight Technologies Inc. on 4.

Valuation

Metric GRMN KEYS Scientific & Technical Instruments median
P/E 30.17 49.27 35.93
P/S 7.39 9.41 4.46
P/B 6.28 9.42 3.00
Price to free cash flow 35.54 41.51 24.96
EV/EBITDA 23.39 35.83 19.60
EV/Sales 7.05 9.40 4.98
Earnings yield 3.31% 2.03% 0.53%
Free cash flow yield 2.81% 2.41% 1.12%

Profitability

Metric GRMN KEYS Scientific & Technical Instruments median
Gross margin 60.08% 64.69% 45.75%
Operating margin 27.61% 20.25% 7.34%
Net margin 24.47% 19.14% 1.56%
Free cash flow margin 20.85% 22.67% 5.84%
Return on equity 21.89% 20.59% 2.87%
Return on assets 17.26% 11.16% 0.99%
Return on invested capital 20.81% 12.85% 3.88%

Growth

Metric GRMN KEYS Scientific & Technical Instruments median
Revenue growth (TTM) 13.51% 25.54% 11.28%
EPS growth (last fiscal year) 17.67% 39.32% —
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 3.03 2.02 2.24
Net debt to EBITDA (1.33) 0.57 0.44

Dividend

Metric GRMN KEYS Scientific & Technical Instruments median
Dividend yield 2.42% — 0.72%
Payout ratio 0.56 0.00 0.00

Size

Metric GRMN KEYS Scientific & Technical Instruments median
Market cap 57.28b 61.04b 483.67m

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