Critical Analysis: MTS Systems Corporation (MTSC) & Kyocera Corporation (KYO)
MTS Systems Corporation (NASDAQ: MTSC) and Kyocera Corporation (NYSE:KYO) are both computer and technology companies, but which is the better investment? We will contrast the two businesses based on the strength of their analyst recommendations, valuation, earnings, profitability, dividends, risk and institutional ownership.
This is a breakdown of recent ratings and target prices for MTS Systems Corporation and Kyocera Corporation, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|MTS Systems Corporation||0||1||1||0||2.50|
Given MTS Systems Corporation’s higher probable upside, research analysts plainly believe MTS Systems Corporation is more favorable than Kyocera Corporation.
Volatility & Risk
MTS Systems Corporation has a beta of 1.25, suggesting that its stock price is 25% more volatile than the S&P 500. Comparatively, Kyocera Corporation has a beta of 0.58, suggesting that its stock price is 42% less volatile than the S&P 500.
This table compares MTS Systems Corporation and Kyocera Corporation’s 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%|
Institutional and Insider Ownership
0.5% of Kyocera Corporation shares are owned by institutional investors. 1.8% of MTS Systems Corporation shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments 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 2.3%. Kyocera Corporation pays an annual dividend of $0.47 per share and has a dividend yield of 0.7%. 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. Kyocera Corporation pays out 14.7% of its earnings in the form of a dividend.
Valuation and Earnings
This table compares MTS Systems Corporation and Kyocera Corporation’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||NetIncome||Earnings Per Share||Price/Earnings Ratio|
|MTS Systems Corporation||$650.15||1.36||$27.49||$1.31||39.73|
Kyocera Corporation has higher revenue and earnings than MTS Systems Corporation. Kyocera Corporation 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.
Kyocera Corporation beats MTS Systems Corporation on 9 of the 15 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.
Kyocera Corporation Company Profile
Kyocera Corporation is engaged in various fields, from fine ceramic components to electronic devices, equipment, services and networks. The Company operates through seven segments: Fine Ceramic Parts Group, Semiconductor Parts Group, Applied Ceramic Products Group, Electronic Device Group, Telecommunications Equipment Group, Information Equipment Group and Others. The Company’s products include components for semiconductor processing equipment and flat panel display manufacturing equipment, information and telecommunication components, general industrial machinery components, sapphire substrates, automotive components, solar energy products, cutting tools, medical and dental implants, jewelry and applied ceramic related products, page printers and multifunctional products. It also offers information systems and telecommunication services, engineering business, management consulting business, materials for semiconductors, chemical materials and realty development business.
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