MTS Systems Corporation (NASDAQ: MTSC) is one of 46 public companies in the “Electrical Components & Equipment” industry, but how does it contrast to its competitors? We will compare MTS Systems Corporation to similar companies based on the strength of its valuation, analyst recommendations, institutional ownership, earnings, risk, dividends and profitability.

Profitability

This table compares MTS Systems Corporation and its competitors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
MTS Systems Corporation 3.13% 12.49% 4.31%
MTS Systems Corporation Competitors -3.11% 5.25% 2.19%

Valuation & Earnings

This table compares MTS Systems Corporation and its competitors gross revenue, earnings per share (EPS) and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
MTS Systems Corporation $801.32 million $113.92 million 38.59
MTS Systems Corporation Competitors $1.91 billion $302.41 million -35.03

MTS Systems Corporation’s competitors have higher revenue and earnings than MTS Systems Corporation. MTS Systems Corporation is trading at a higher price-to-earnings ratio than its competitors, indicating that it is currently more expensive than other companies in its industry.

Dividends

MTS Systems Corporation pays an annual dividend of $1.20 per share and has a dividend yield of 2.4%. MTS Systems Corporation pays out 91.6% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. As a group, “Electrical Components & Equipment” companies pay a dividend yield of 1.6% and pay out 45.5% of their earnings in the form of a dividend.

Institutional & Insider Ownership

66.7% of shares of all “Electrical Components & Equipment” companies are owned by institutional investors. 1.5% of MTS Systems Corporation shares are owned by company insiders. Comparatively, 6.4% of shares of all “Electrical Components & Equipment” companies are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Analyst Recommendations

This is a breakdown of current ratings and target prices for MTS Systems Corporation and its competitors, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
MTS Systems Corporation 0 1 2 0 2.67
MTS Systems Corporation Competitors 256 1039 1228 13 2.39

MTS Systems Corporation presently has a consensus price target of $58.00, suggesting a potential upside of 14.74%. As a group, “Electrical Components & Equipment” companies have a potential upside of 5.71%. Given MTS Systems Corporation’s stronger consensus rating and higher probable upside, analysts plainly believe MTS Systems Corporation is more favorable than its competitors.

Risk and Volatility

MTS Systems Corporation has a beta of 1.27, suggesting that its share price is 27% more volatile than the S&P 500. Comparatively, MTS Systems Corporation’s competitors have a beta of 1.29, suggesting that their average share price is 29% more volatile than the S&P 500.

Summary

MTS Systems Corporation beats its competitors on 8 of the 15 factors compared.

MTS Systems Corporation Company Profile

MTS Systems Corporation is a supplier of test systems and position sensors. The Company operates through two segments: Test and Sensors. The Test segment provides testing solutions, including hardware, software and services to ground vehicles, materials and structures markets. The Sensors segment provides position sensors for a range of industrial and mobile hydraulic applications. The Sensors segment products are used by industrial machinery and mobile equipment manufacturers to automate the operation of their products for safety and end-user productivity. The Sensors segment manufactures products utilizing magnetostriction technology. Its technology, Temposonics, offers non-contact position sensing. Its Temposonics sensors provide position feedback for motion control systems. It also provides various service offerings, including calibration, maintenance, training and consulting. The Company has its manufacturing facilities in North America, Europe and Asia.

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