Keysight Technologies Inc. (KEYS) vs MKS Inc. (MKSI)

Keysight Technologies Inc. and MKS Inc. are both Scientific & Technical Instruments companies. Keysight Technologies Inc. is the larger, with a market value of $61.0B against $17.7B — 3.4× the size. MKS Inc. trades at the lower P/E: 39.9× against 49.3×. Keysight Technologies Inc. grew revenue faster over the last twelve months: 25.5% against 16.3%. Keysight Technologies Inc. has the higher net margin (19.1% vs 10.1%) and the higher return on invested capital (12.9% vs 6.74%). Across the 22 metrics below, Keysight Technologies Inc. leads on 12 and MKS Inc. on 10.

Valuation

Metric KEYS MKSI Scientific & Technical Instruments median
P/E 49.27 39.94 35.93
P/S 9.41 4.06 4.46
P/B 9.42 5.90 3.00
Price to free cash flow 41.51 38.50 24.96
EV/EBITDA 35.83 20.04 19.60
EV/Sales 9.40 4.82 4.98
Earnings yield 2.03% 2.50% 0.53%
Free cash flow yield 2.41% 2.60% 1.12%

Profitability

Metric KEYS MKSI Scientific & Technical Instruments median
Gross margin 64.69% 46.96% 45.75%
Operating margin 20.25% 15.69% 7.34%
Net margin 19.14% 10.12% 1.56%
Free cash flow margin 22.67% 10.53% 5.84%
Return on equity 20.59% 15.88% 2.87%
Return on assets 11.16% 4.95% 0.99%
Return on invested capital 12.85% 6.74% 3.88%

Growth

Metric KEYS MKSI Scientific & Technical Instruments median
Revenue growth (TTM) 25.54% 16.26% 11.28%
EPS growth (last fiscal year) 39.32% 55.52% —
Revenue growth, 5-year CAGR 4.95% 11.03% 7.89%
Net income growth, 5-year CAGR 6.27% (3.36%) 0.00%

Health

Metric KEYS MKSI Scientific & Technical Instruments median
Debt to equity 0.38 1.32 0.00
Current ratio 2.02 1.14 2.24
Net debt to EBITDA 0.57 3.93 0.44

Dividend

Metric KEYS MKSI Scientific & Technical Instruments median
Dividend yield — 0.77% 0.72%
Payout ratio 0.00 0.12 0.00

Size

Metric KEYS MKSI Scientific & Technical Instruments median
Market cap 61.04b 17.71b 483.67m

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