Garmin Ltd. (GRMN) vs MKS Inc. (MKSI)

Garmin Ltd. and MKS Inc. are both Scientific & Technical Instruments companies. Garmin Ltd. is the larger, with a market value of $57.3B against $17.7B — 3.2× the size. Garmin Ltd. trades at the lower P/E: 30.2× against 39.9×. MKS Inc. grew revenue faster over the last twelve months: 16.3% against 13.5%. Garmin Ltd. has the higher net margin (24.5% vs 10.1%) and the higher return on invested capital (20.8% vs 6.74%). Both pay a dividend; Garmin Ltd. yields more (2.42% vs 0.77%). Across the 23 metrics below, Garmin Ltd. leads on 17 and MKS Inc. on 6.

Valuation

Metric GRMN MKSI Scientific & Technical Instruments median
P/E 30.17 39.94 35.93
P/S 7.39 4.06 4.46
P/B 6.28 5.90 3.00
Price to free cash flow 35.54 38.50 24.96
EV/EBITDA 23.39 20.04 19.60
EV/Sales 7.05 4.82 4.98
Earnings yield 3.31% 2.50% 0.53%
Free cash flow yield 2.81% 2.60% 1.12%

Profitability

Metric GRMN MKSI Scientific & Technical Instruments median
Gross margin 60.08% 46.96% 45.75%
Operating margin 27.61% 15.69% 7.34%
Net margin 24.47% 10.12% 1.56%
Free cash flow margin 20.85% 10.53% 5.84%
Return on equity 21.89% 15.88% 2.87%
Return on assets 17.26% 4.95% 0.99%
Return on invested capital 20.81% 6.74% 3.88%

Growth

Metric GRMN MKSI Scientific & Technical Instruments median
Revenue growth (TTM) 13.51% 16.26% 11.28%
EPS growth (last fiscal year) 17.67% 55.52% —
Revenue growth, 5-year CAGR 11.59% 11.03% 7.89%
Net income growth, 5-year CAGR 10.89% (3.36%) 0.00%

Health

Metric GRMN MKSI Scientific & Technical Instruments median
Debt to equity 0.00 1.32 0.00
Current ratio 3.03 1.14 2.24
Net debt to EBITDA (1.33) 3.93 0.44

Dividend

Metric GRMN MKSI Scientific & Technical Instruments median
Dividend yield 2.42% 0.77% 0.72%
Payout ratio 0.56 0.12 0.00

Size

Metric GRMN MKSI Scientific & Technical Instruments median
Market cap 57.28b 17.71b 483.67m

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