MTS Systems (NASDAQ:MTSC) and Mechanical Technology (OTCMKTS:MKTY) are both small-cap computer and technology companies, but which is the better business? We will compare the two companies based on the strength of their valuation, dividends, profitability, institutional ownership, risk, analyst recommendations and earnings.

Profitability

This table compares MTS Systems and Mechanical Technology’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
MTS Systems 7.18% 7.56% 2.99%
Mechanical Technology 14.12% 22.33% 17.85%

Analyst Recommendations

This is a summary of recent ratings for MTS Systems and Mechanical Technology, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
MTS Systems 0 0 1 0 3.00
Mechanical Technology 0 0 0 0 N/A

MTS Systems presently has a consensus target price of $70.00, suggesting a potential upside of 48.97%. Given MTS Systems’ higher probable upside, equities analysts clearly believe MTS Systems is more favorable than Mechanical Technology.

Dividends

MTS Systems pays an annual dividend of $1.20 per share and has a dividend yield of 2.6%. Mechanical Technology does not pay a dividend. MTS Systems pays out 54.1% of its earnings in the form of a dividend. MTS Systems has raised its dividend for 7 consecutive years.

Volatility and Risk

MTS Systems has a beta of 1.01, indicating that its share price is 1% more volatile than the S&P 500. Comparatively, Mechanical Technology has a beta of -0.86, indicating that its share price is 186% less volatile than the S&P 500.

Valuation and Earnings

This table compares MTS Systems and Mechanical Technology’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
MTS Systems $787.96 million 1.07 $25.08 million $2.22 21.17
Mechanical Technology $7.06 million 1.25 $580,000.00 N/A N/A

MTS Systems has higher revenue and earnings than Mechanical Technology.

Institutional & Insider Ownership

98.0% of MTS Systems shares are owned by institutional investors. 1.5% of MTS Systems shares are owned by insiders. Comparatively, 45.4% of Mechanical Technology shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Summary

MTS Systems beats Mechanical Technology on 9 of the 15 factors compared between the two stocks.

MTS Systems Company Profile

MTS Systems Corporation supplies test systems and sensors in the Americas, Europe, and Asia. The company's Test segment offers road simulators and component test systems for durability testing; vehicle performance test systems; vehicle dynamics simulators; electrical motors and energy recovery systems; tire performance and rolling resistance measurement systems; and moving ground-plane systems and balances. It also provides systems for the physical characterization of material properties, including ceramics, composites, and steel; systems to test durability and performance of implants, prostheses, and other medical and dental materials and devices; products, systems, and software to perform static and fatigue testing of aircraft and space vehicles; products for blades, bearings, and wind turbines; structural engineering systems, such as static and dynamic testing; and seismic simulation tables. In addition, this segment offers installation, professional training, calibration and metrology, technical consulting, and onsite and factory repair and maintenance services, as well as various accessories and spare parts. It serves automobile, truck, motorcycle, motorsports vehicle, construction equipment, agricultural equipment, rail, and off-road vehicle manufacturers and their suppliers, as well as power generation, aerospace, bio-medical, wind energy, oil and gas, structural engineering, and other industries. The company's Sensors segment offers sensors for acceleration, position, vibration, motion, pressure, force, and sound measurement; and piezoelectric sensors and components for vibration, pressure, and force measurement. It serves automotive, aerospace, industrial, defense, and research and development markets. The company sells its products through direct sales and service organizations, and independent distributors, as well as through catalogs, Internet, etc. MTS Systems Corporation was founded in 1966 and is headquartered in Eden Prairie, Minnesota.

Mechanical Technology Company Profile

Mechanical Technology, Incorporated, through its subsidiary, MTI Instruments, Inc., designs, manufactures, and markets precision linear displacement solutions, vibration measurement and system balancing solutions, precision tensile measurement systems, and wafer inspection tools worldwide. It offers electronic gauging instruments for position, displacement, and vibration applications in the industrial manufacturing/production markets, as well as the research, design, and process development market. The company also provides engine balancing and vibration analysis systems for military and commercial aircraft; metrology tools for semiconductor and solar wafer characterization; and tensile stage systems for materials testing and precision linear displacement gauges for use in academic and industrial research and development settings. It sells its precision automated manufacturing, and research and development sectors through direct sales and representatives in the Americas; and through distributors and agents in Europe and Asia, as well as axial turbo machinery directly to end users. The company serves electronics, aircraft, aerospace, automotive, semiconductor, and research industries. Mechanical Technology, Incorporated was founded in 1961 and is headquartered in Albany, New York.

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