AMTEK (AME) vs. MTS Systems Corporation (MTSC) Critical Survey
MTS Systems Corporation (NASDAQ: MTSC) and AMTEK (NYSE:AME) are both computer and technology companies, but which is the better stock? We will compare the two businesses based on the strength of their earnings, valuation, profitabiliy, analyst recommendations, institutional ownership, risk and dividends.
This is a breakdown of recent recommendations for MTS Systems Corporation and AMTEK, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|MTS Systems Corporation||0||2||1||0||2.33|
MTS Systems Corporation presently has a consensus price target of $58.00, indicating a potential upside of 12.84%. AMTEK has a consensus price target of $62.60, indicating a potential upside of 1.69%. Given MTS Systems Corporation’s higher possible upside, equities research analysts plainly believe MTS Systems Corporation is more favorable than AMTEK.
This table compares MTS Systems Corporation and AMTEK’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|MTS Systems Corporation||2.83%||12.81%||4.94%|
Institutional & Insider Ownership
89.7% of AMTEK shares are owned by institutional investors. 1.5% of MTS Systems Corporation shares are owned by company insiders. Comparatively, 2.1% of AMTEK shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.
MTS Systems Corporation pays an annual dividend of $1.20 per share and has a dividend yield of 2.3%. AMTEK pays an annual dividend of $0.36 per share and has a dividend yield of 0.6%. MTS Systems Corporation pays out 98.4% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. AMTEK pays out 16.2% of its earnings in the form of a dividend.
Valuation & Earnings
This table compares MTS Systems Corporation and AMTEK’s gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|MTS Systems Corporation||$765.25 million||1.12||$108.80 million||$1.22||42.13|
|AMTEK||$3.90 billion||3.63||$1.02 billion||$2.22||27.73|
AMTEK has higher revenue and earnings than MTS Systems Corporation. AMTEK is trading at a lower price-to-earnings ratio than MTS Systems Corporation, indicating that it is currently the more affordable of the two stocks.
Risk and Volatility
MTS Systems Corporation has a beta of 1.3, meaning that its stock price is 30% more volatile than the S&P 500. Comparatively, AMTEK has a beta of 1.33, meaning that its stock price is 33% more volatile than the S&P 500.
AMTEK beats MTS Systems Corporation on 14 of the 16 factors compared between the two stocks.
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.
AMTEK Company Profile
AMETEK, Inc. is a manufacturer of electronic instruments and electromechanical devices with operations in North America, Europe, Asia and South America. The Company operates through two segments: Electronic Instruments (EIG) and Electromechanical (EMG). EIG designs and manufactures instruments for the process, power and industrial and aerospace markets. EIG provides process and analytical instruments for the oil, gas, petrochemical, pharmaceutical, semiconductor and automation markets. It makes monitoring and metering devices, industrial battery chargers and uninterruptible power supplies, programmable power equipment, electrical test equipment and gas turbine sensors. EMG is a differentiated supplier of precision motion control solutions, thermal management systems, specialty metals and electrical interconnects. Its end markets include medical, automation, petrochemical and other industrial markets. It operates a network of aviation maintenance, repair and overhaul (MRO) facilities.
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