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 $44.4B against $12.0B — 3.7× the size. MKS Inc. trades at the lower P/E: 21.5× against 36.9×. Keysight Technologies Inc. grew revenue faster over the last twelve months: 25.5% against 24.6%. Keysight Technologies Inc. has the higher net margin (19.1% vs 12.6%) and the higher return on invested capital (12.9% vs 8.51%). 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 36.94 21.51 28.21
P/S 7.05 2.72 4.46
P/B 7.06 3.95 3.10
Price to free cash flow 31.11 23.39 24.15
EV/EBITDA 26.85 15.37 18.28
EV/Sales 7.04 3.37 4.64
Earnings yield 2.71% 4.65% 0.68%
Free cash flow yield 3.21% 4.28% 1.98%

Profitability

Metric KEYS MKSI Scientific & Technical Instruments median
Gross margin 64.69% 47.24% 47.24%
Operating margin 20.25% 18.23% 8.96%
Net margin 19.14% 12.61% 1.92%
Free cash flow margin 22.67% 11.63% 10.59%
Return on equity 20.59% 20.46% 2.66%
Return on assets 11.16% 6.69% 1.12%
Return on invested capital 12.85% 8.51% 4.79%

Growth

Metric KEYS MKSI Scientific & Technical Instruments median
Revenue growth (TTM) 25.54% 24.56% 9.26%
EPS growth (last fiscal year) 39.32% 55.52% 13.24%
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 1.15 0.00
Current ratio 2.02 1.19 2.30
Net debt to EBITDA 0.57 3.93 0.45

Dividend

Metric KEYS MKSI Scientific & Technical Instruments median
Dividend yield — 0.51% 0.62%
Payout ratio — 0.12 0.22

Size

Metric KEYS MKSI Scientific & Technical Instruments median
Market cap 44.37b 11.96b 549.07m

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