Analyzing Spectris (OTCMKTS:SEPJY) & MKS (NASDAQ:MKSI)

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

Volatility and Risk

Spectris has a beta of 0.3, suggesting that its share price is 70% less volatile than the S&P 500. Comparatively, MKS has a beta of 1.95, suggesting that its share price is 95% more volatile than the S&P 500.

Institutional and Insider 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 large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Spectris	N/A	N/A	N/A
MKS	7.25%	20.80%	5.88%

Valuation and Earnings

This table compares Spectris and MKS”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Spectris	$1.66 billion	3.08	$298.52 million	N/A	N/A
MKS	$3.59 billion	4.55	$190.00 million	$4.12	58.99

Spectris has higher earnings, but lower revenue than MKS.

Dividends

Spectris pays an annual dividend of $0.29 per share and has a dividend yield of 1.1%. MKS pays an annual dividend of $0.88 per share and has a dividend yield of 0.4%. MKS pays out 21.4% of its earnings in the form of a dividend.

Analyst Recommendations

This is a summary of current recommendations for Spectris and MKS, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Spectris	0	1	1	0	2.50
MKS	1	2	10	1	2.79

MKS has a consensus price target of $231.50, indicating a potential downside of 4.74%. Given MKS’s stronger consensus rating and higher probable upside, analysts clearly believe MKS is more favorable than Spectris.

Summary

MKS beats Spectris on 12 of the 15 factors compared between the two stocks.

About Spectris

Spectris plc provides precision measurement solutions worldwide. It operates through Spectris Scientific, Spectris Dynamics, and Other segments. The Spectris Scientific segment provides advanced sensors and instruments used to measure, analyze, and characterize materials; and monitor ultra-clean manufacturing environments. Spectris Dynamics segment offers differentiated sensing, data acquisition, analysis modelling, and simulation solutions for product development and enhance product performance. The Other segment operates high-value precision in-line sensing and monitoring businesses. It serves life sciences/pharmaceuticals, technology-led industrials, automotive, electronics and semiconductor, academic research, and other markets, as well as metals, minerals, and mining. The company was formerly known as Fairey Group plc and changed its name to Spectris plc in May 2001. Spectris plc was incorporated in 1986 and is based in London, the United Kingdom.

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.