Head-To-Head Analysis: MKS (MKSI) versus Its Competitors

MKS (NASDAQ:MKSI) is one of 221 public companies in the “Semiconductors & Semiconductor Equipment” industry, but how does it contrast to its rivals? We will compare MKS to similar companies based on the strength of its profitability, valuation, institutional ownership, analyst recommendations, risk, dividends and earnings.

Analyst Recommendations

This is a summary of current ratings and target prices for MKS and its rivals, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
MKS	1	2	12	1	2.81
MKS Competitors	3490	12316	25726	993	2.57

MKS presently has a consensus target price of $374.86, indicating a potential upside of 92.28%. As a group, “Semiconductors & Semiconductor Equipment” companies have a potential upside of 43.44%. Given MKS’s stronger consensus rating and higher probable upside, equities analysts plainly believe MKS is more favorable than its rivals.

Volatility and Risk

MKS has a beta of 2.14, meaning that its share price is 114% more volatile than the S&P 500. Comparatively, MKS’s rivals have a beta of 2.80, meaning that their average share price is 180% more volatile than the S&P 500.

Institutional and Insider Ownership

99.8% of MKS shares are held by institutional investors. Comparatively, 54.6% of shares of all “Semiconductors & Semiconductor Equipment” companies are held by institutional investors. 0.6% of MKS shares are held by insiders. Comparatively, 11.9% of shares of all “Semiconductors & Semiconductor Equipment” companies are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Profitability

This table compares MKS and its rivals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
MKS	10.15%	24.72%	7.80%
MKS Competitors	-1,279.15%	-126.37%	-3.99%

Valuation & Earnings

This table compares MKS and its rivals top-line revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
MKS	$3.93 billion	$295.00 million	31.09
MKS Competitors	$7.28 billion	$2.48 billion	8.24

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

Dividends

MKS pays an annual dividend of $1.00 per share and has a dividend yield of 0.5%. MKS pays out 15.9% of its earnings in the form of a dividend. As a group, “Semiconductors & Semiconductor Equipment” companies pay a dividend yield of 0.9% and pay out 29.0% of their earnings in the form of a dividend.

Summary

MKS beats its rivals on 10 of the 15 factors compared.

MKS Company Profile

MKS Instruments, Inc. provides foundational technology solutions to semiconductor manufacturing, electronics and packaging, and specialty industrial applications in the United States, Germany, China, South Korea, and internationally. It operates through Vacuum Solutions Division (VSD), Photonics Solutions Division (PSD), and Material Solutions Division (MSD) segments. The VSD segment provides foundational technology solutions, including pressure measurement and control, flow measurement and control, gas and vapor delivery, gas composition analysis, electronic control technology, reactive gas generation and delivery, power generation and delivery, and vacuum technology. The PSD segment offers range of solutions, which include lasers, beam measurement and profiling, precision motion control, vibration isolation systems, photonics instruments, temperature sensing, opto-mechanical components, optical elements, systems for flexible PCB laser processing, and laser-based systems, as well as high density interconnect PCB and package manufacturing. The MSD segment develops, process, and manufactures technologies comprising advanced surface modification, electroless and electrolytic plating, and surface finishing for chemistry, equipment, software, and services markets, as well as high-technology applications. In addition, the company sells its products and services through direct sales, network of independent distributors, and sales representatives, as well as websites, including product catalogs. The company was incorporated in 1961 and is headquartered in Andover, Massachusetts.