MKS (NASDAQ:MKSI) versus Research Frontiers (NASDAQ:REFR) Financial Analysis

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

Analyst Ratings

This is a summary of current ratings for MKS and Research Frontiers, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
MKS	1	2	10	2	2.87
Research Frontiers	1	0	0	0	1.00

MKS presently has a consensus price target of $318.77, indicating a potential downside of 0.58%. Given MKS’s stronger consensus rating and higher possible upside, equities research analysts plainly believe MKS is more favorable than Research Frontiers.

Valuation & Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
MKS	$3.93 billion	5.51	$295.00 million	$4.78	67.08
Research Frontiers	$1.12 million	23.35	-$2.05 million	($0.07)	-10.71

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

Profitability

This table compares MKS and Research Frontiers’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
MKS	8.06%	21.49%	6.54%
Research Frontiers	-343.47%	-159.20%	-84.93%

Insider and Institutional Ownership

99.8% of MKS shares are owned by institutional investors. Comparatively, 11.9% of Research Frontiers shares are owned by institutional investors. 0.6% of MKS shares are owned by insiders. Comparatively, 6.5% of Research Frontiers shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Volatility & Risk

MKS has a beta of 1.98, indicating that its stock price is 98% more volatile than the S&P 500. Comparatively, Research Frontiers has a beta of 0.54, indicating that its stock price is 46% less volatile than the S&P 500.

Summary

MKS beats Research Frontiers on 13 of the 15 factors compared between the two stocks.

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.

About Research Frontiers

Research Frontiers Incorporated engages in the development and marketing of technology and devices to control the flow of light worldwide. It develops and licenses suspended particle device (SPD-Smart) light-control technology to companies that manufacture and market the SPD-Smart chemical emulsion, light-control film made from the chemical emulsion, the light-control panels made by laminating the film, and electronics to power end-products incorporating the film, as well as lamination services for and the end-products, such as windows, skylights, and sunroofs. The company's SPD-Smart light-control technology is used in various product applications, including windows, sunshades, skylights, and interior partitions for homes and buildings; automotive windows, sunroofs, sun-visors, sunshades, rear-view mirrors, instrument panels, and navigation systems; aircraft windows; museum display panels, and eyewear products; and flat panel displays for electronic products. It serves architectural, automotive, marine, and aerospace and appliance applications. The company was incorporated in 1965 and is headquartered in Woodbury, New York.