Comparing Casio Computer (OTCMKTS:CSIOY) & MKS (NASDAQ:MKSI)

Casio Computer (OTCMKTS:CSIOY) and MKS (NASDAQ:MKSI) are both computer and technology companies, but which is the better investment? We will contrast the two companies based on the strength of their institutional ownership, dividends, earnings, risk, analyst recommendations, valuation and profitability.

Insider and Institutional Ownership

99.8% of MKS shares are held by institutional investors. 0.6% of MKS shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Profitability

This table compares Casio Computer and MKS’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Casio Computer	4.89%	4.06%	2.68%
MKS	7.25%	20.80%	5.88%

Analyst Ratings

This is a summary of current ratings and target prices for Casio Computer and MKS, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Casio Computer	0	0	0	0	0.00
MKS	1	2	10	1	2.79

MKS has a consensus price target of $231.50, indicating a potential downside of 5.08%. Given MKS’s stronger consensus rating and higher probable upside, analysts clearly believe MKS is more favorable than Casio Computer.

Earnings & Valuation

This table compares Casio Computer and MKS”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Casio Computer	$1.72 billion	1.33	$53.22 million	$3.71	25.88
MKS	$3.59 billion	4.57	$190.00 million	$4.12	59.19

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

Volatility & Risk

Casio Computer has a beta of 0.2, indicating that its share price is 80% less volatile than the S&P 500. Comparatively, MKS has a beta of 1.92, indicating that its share price is 92% more volatile than the S&P 500.

Dividends

Casio Computer pays an annual dividend of $2.19 per share and has a dividend yield of 2.3%. MKS pays an annual dividend of $0.88 per share and has a dividend yield of 0.4%. Casio Computer pays out 59.0% of its earnings in the form of a dividend. MKS pays out 21.4% 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.

Summary

MKS beats Casio Computer on 16 of the 17 factors compared between the two stocks.

About Casio Computer

Casio Computer Co.,Ltd. develops, produces, and sells consumer, system equipment, and other products. The company operates in Timepieces, Consumer, System Equipment, and Other segments. It offers timepieces, electronic dictionaries, calculators, label printers, electronic musical instruments, handheld terminals, cash registers, management support systems, data projectors, formed parts, and molds products. The company was incorporated in 1946 and is headquartered in Tokyo, Japan.

About MKS

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.