Head-To-Head Analysis: MTS Systems Corporation (MTSC) and The Competition
MTS Systems Corporation (NASDAQ: MTSC) is one of 46 public companies in the “Electrical Components & Equipment” industry, but how does it compare to its peers? We will compare MTS Systems Corporation to similar companies based off the strength of its risk, profitability, valuation, earnings, analyst recommendations, dividends and institutional ownership.
Institutional & Insider Ownership
66.7% of shares of all “Electrical Components & Equipment” companies are held by institutional investors. 1.5% of MTS Systems Corporation shares are held by insiders. Comparatively, 6.4% of shares of all “Electrical Components & Equipment” companies are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.
MTS Systems Corporation pays an annual dividend of $1.20 per share and has a dividend yield of 2.5%. 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 1.7% and pay out 45.5% of their earnings in the form of a dividend.
Valuation & Earnings
This table compares MTS Systems Corporation and its peers top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||EBITDA||Price/Earnings Ratio|
|MTS Systems Corporation||$801.32 million||$113.92 million||35.95|
|MTS Systems Corporation Competitors||$1.91 billion||$302.15 million||-31.79|
MTS Systems Corporation’s peers have higher revenue and earnings than MTS Systems Corporation. MTS Systems Corporation is trading at a higher price-to-earnings ratio than its peers, indicating that it is currently the more expensive than other companies in its industry.
Risk & 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 peers have a beta of 1.29, suggesting that their average share price is 29% more volatile than the S&P 500.
This is a breakdown of recent ratings and target prices for MTS Systems Corporation and its peers, 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||1028||1221||12||2.39|
MTS Systems Corporation currently has a consensus target price of $58.00, indicating a potential upside of 23.14%. All “Electrical Components & Equipment” companies have a potential upside of 3.44%. Given MTS Systems Corporation’s stronger consensus rating and higher probable upside, research analysts plainly believe MTS Systems Corporation is more favorable than its peers.
This table compares MTS Systems Corporation and its peers’ 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%|
MTS Systems Corporation beats its peers 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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