GrafTech International (NYSE: GTI) and MTS Systems Corporation (NASDAQ:MTSC) are both small-cap industrials companies, but which is the superior stock? We will compare the two businesses based on the strength of their institutional ownership, valuation, earnings, analyst recommendations, profitability, risk and dividends.

Analyst Recommendations

This is a summary of current recommendations and price targets for GrafTech International and MTS Systems Corporation, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
GrafTech International 0 0 0 0 N/A
MTS Systems Corporation 0 1 2 0 2.67

MTS Systems Corporation has a consensus price target of $58.00, suggesting a potential upside of 7.01%. Given MTS Systems Corporation’s higher possible upside, analysts clearly believe MTS Systems Corporation is more favorable than GrafTech International.

Dividends

MTS Systems Corporation pays an annual dividend of $1.20 per share and has a dividend yield of 2.2%. GrafTech International does not pay a dividend. 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.

Earnings and Valuation

This table compares GrafTech International and MTS Systems Corporation’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
GrafTech International N/A N/A N/A N/A N/A
MTS Systems Corporation $801.32 million 1.15 $113.92 million $1.31 41.37

MTS Systems Corporation has higher revenue and earnings than GrafTech International.

Profitability

This table compares GrafTech International and MTS Systems Corporation’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
GrafTech International -13.82% -9.99% -5.32%
MTS Systems Corporation 3.13% 12.49% 4.31%

Summary

MTS Systems Corporation beats GrafTech International on 7 of the 8 factors compared between the two stocks.

About GrafTech International

GrafTech International Ltd. (GTI) is a manufacturer of graphite electrodes, products essential to the production of electric arc furnace (EAF) steel and other ferrous and nonferrous metals. The Company produces needle coke products, which are the primary raw material needed in the manufacture of graphite electrodes. The Company manufactures carbon, graphite and semi-graphite refractory products, which protect the walls of blast furnaces and submerged arc furnaces. The Company’s operating segments include: Industrial Materials, which include graphite electrodes, refractory products and needle coke products, and Engineered Solutions, which includes advanced graphite materials, advanced composite materials, advanced electronics technologies and advanced materials. The Company has seven product categories: graphite electrodes, refractory products, needle coke products, advanced graphite materials, advanced composite materials, advanced electronics technologies and advanced materials.

About MTS Systems Corporation

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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