MKS Instruments (NASDAQ: MKSI) and Allied Motion Technologies (NASDAQ:AMOT) are both computer and technology companies, but which is the superior stock? We will contrast the two companies based on the strength of their risk, earnings, dividends, profitabiliy, valuation, analyst recommendations and institutional ownership.

Analyst Ratings

This is a summary of current recommendations for MKS Instruments and Allied Motion Technologies, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
MKS Instruments 0 0 4 0 3.00
Allied Motion Technologies 0 0 0 0 N/A

MKS Instruments presently has a consensus price target of $85.25, indicating a potential upside of 10.36%. Given MKS Instruments’ higher possible upside, equities analysts plainly believe MKS Instruments is more favorable than Allied Motion Technologies.

Valuation & Earnings

This table compares MKS Instruments and Allied Motion Technologies’ top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
MKS Instruments $1.70 billion 2.46 $407.89 million $4.80 16.09
Allied Motion Technologies $238.07 million 1.00 $26.42 million $0.88 28.63

MKS Instruments has higher revenue and earnings than Allied Motion Technologies. MKS Instruments is trading at a lower price-to-earnings ratio than Allied Motion Technologies, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares MKS Instruments and Allied Motion Technologies’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
MKS Instruments 15.47% 19.47% 11.16%
Allied Motion Technologies 3.41% 10.65% 4.45%

Insider & Institutional Ownership

98.4% of MKS Instruments shares are owned by institutional investors. Comparatively, 39.0% of Allied Motion Technologies shares are owned by institutional investors. 1.7% of MKS Instruments shares are owned by insiders. Comparatively, 30.8% of Allied Motion Technologies shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Dividends

MKS Instruments pays an annual dividend of $0.70 per share and has a dividend yield of 0.9%. Allied Motion Technologies pays an annual dividend of $0.10 per share and has a dividend yield of 0.4%. MKS Instruments pays out 14.6% of its earnings in the form of a dividend. Allied Motion Technologies pays out 11.4% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years.

Risk and Volatility

MKS Instruments has a beta of 1.07, indicating that its share price is 7% more volatile than the S&P 500. Comparatively, Allied Motion Technologies has a beta of 1.88, indicating that its share price is 88% more volatile than the S&P 500.

Summary

MKS Instruments beats Allied Motion Technologies on 11 of the 15 factors compared between the two stocks.

MKS Instruments Company Profile

MKS Instruments, Inc. is a global provider of instruments, subsystems and process control solutions that measures, controls, powers, delivers, monitors and analyzes critical parameters of advanced manufacturing processes. The Company operates through two segments, including the Vacuum & Analysis segment and the Light & Motion segment. The Vacuum & Analysis segment provides a range of instruments, components, subsystems and software, which are derived from its core competencies in pressure measurement and control, flow measurement and control, gas and vapor delivery, gas composition analysis, residual gas analysis, leak detection, control and information technology, ozone generation and delivery, radio frequency (RF) and direct current (DC) power, reactive gas generation and vacuum technology. The Light & Motion segment provides a range of instruments, components and subsystems, which are derived from its core competencies in lasers, photonics and optics.

Allied Motion Technologies Company Profile

Allied Motion Technologies Inc. designs, manufactures and sells precision and specialty motion control components and systems used in a range of industries. The Company serves various markets, including vehicle, medical, aerospace and defense, electronics and industrial. It focuses on motion control applications. It is engaged in developing electro-magnetic, mechanical and electronic motion technology. It operates in the design and manufacture of motion control products, marketed to original equipment manufacturers and end users segment. Its products are used in the handling, inspection, and testing of components and final products, such as printers, tunable lasers and spectrum analyzers for the fiber optic industry, and test and processing equipment for the semiconductor manufacturing industry. Its products are used in a range of medical, industrial and commercial aviation applications, such as dialysis equipment, industrial ink jet printers and cash dispensers.

Receive News & Ratings for MKS Instruments Inc. Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for MKS Instruments Inc. and related companies with MarketBeat.com's FREE daily email newsletter.