Reviewing Advanced Energy Industries (NASDAQ:AEIS) & Keysight Technologies (NYSE:KEYS)

Keysight Technologies (NYSE:KEYS) and Advanced Energy Industries (NASDAQ:AEIS) are both large-cap technology companies, but which is the superior stock? We will contrast the two companies based on the strength of their profitability, valuation, risk, dividends, institutional ownership, analyst recommendations and earnings.

Profitability

This table compares Keysight Technologies and Advanced Energy Industries’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Keysight Technologies	19.08%	24.34%	13.10%
Advanced Energy Industries	10.77%	20.75%	10.39%

Analyst Ratings

This is a summary of recent ratings and price targets for Keysight Technologies and Advanced Energy Industries, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Keysight Technologies	0	2	11	1	2.93
Advanced Energy Industries	0	2	11	1	2.93

Keysight Technologies presently has a consensus target price of $392.83, suggesting a potential upside of 8.92%. Advanced Energy Industries has a consensus target price of $409.50, suggesting a potential upside of 44.66%. Given Advanced Energy Industries’ higher possible upside, analysts clearly believe Advanced Energy Industries is more favorable than Keysight Technologies.

Insider & Institutional Ownership

84.6% of Keysight Technologies shares are owned by institutional investors. Comparatively, 99.7% of Advanced Energy Industries shares are owned by institutional investors. 0.4% of Keysight Technologies shares are owned by company insiders. Comparatively, 1.3% of Advanced Energy Industries shares are owned 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.

Volatility and Risk

Keysight Technologies has a beta of 1.21, indicating that its stock price is 21% more volatile than the S&P 500. Comparatively, Advanced Energy Industries has a beta of 1.31, indicating that its stock price is 31% more volatile than the S&P 500.

Earnings & Valuation

This table compares Keysight Technologies and Advanced Energy Industries”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Keysight Technologies	$5.38 billion	11.42	$850.00 million	$7.28	49.54
Advanced Energy Industries	$1.80 billion	6.30	$148.40 million	$5.36	52.81

Keysight Technologies has higher revenue and earnings than Advanced Energy Industries. Keysight Technologies is trading at a lower price-to-earnings ratio than Advanced Energy Industries, indicating that it is currently the more affordable of the two stocks.

Summary

Keysight Technologies beats Advanced Energy Industries on 7 of the 12 factors compared between the two stocks.

About Keysight Technologies

Keysight Technologies, Inc. provides electronic design and test solutions to commercial communications, networking, aerospace, defense and government, automotive, energy, semiconductor, electronic, and education industries in the Americas, Europe, and the Asia Pacific. The company operates in two segments, Communications Solutions Group and Electronic Industrial Solutions Group. It offers electronic design automation (EDA) software; instrument measurement software, instrument workflow software, and software testing; digital multimeter, phase noise measurement, power meters and power sensors, counters, LCR meters and impedance measurement products, and electrometers; and spectrum analyzers, network analyzers, logic analyzers, protocol analyzers and exercisers, bit error ratio testers, noise figure analyzers, AC and DC power analyzers, materials test equipment, device current waveform analyzers, and curve tracers. The company also provides waveform and function generators, arbitrary waveform generators, DC power supplies, and DC electronic loads; wireless drive test, radio access and core network test, wireless analyzers, wireless network emulators, and over-the-air test; application and threat intelligence, cloud test, cyber training simulator, network test hardware, synthetic traffic generators, protocol and load test, network security test, and network modeling; bypass switches, clock synchronization, cloud visibility, network and application monitoring, network packet brokers, and network taps; and application-specific test systems, photonic test and measurement products, and MMIC millimeter-wave and microwave devices. In addition, it offers product support, technical support, installation, training, engineering, and integration services. The company sells its products through direct sales force, distributors, resellers, and manufacturer's representatives. Keysight Technologies, Inc. was founded in 1939 and is headquartered in Santa Rosa, California.

About Advanced Energy Industries

Advanced Energy Industries, Inc. provides precision power conversion, measurement, and control solutions in the United States and internationally. The company's plasma power products offer solutions to enable innovation for semiconductor and thin film plasma processes, such as dry etch and deposition. It also provides high and low voltage power products used in a range of applications, such as semiconductor equipment, industrial production, medical and life science equipment, data centers computing, networking, and telecommunications. In addition, the company supplies sensing, controls, and instrumentation products for advanced measurement and calibration of power and temperature. Further, the company provides calibration, conversions, upgrades, and refurbishments and used equipment to companies, as well as repair services. Further, it offers warranty and after-market repair services. It offers its products through a direct sales force, independent sales representatives, channel partners, and distributors. Advanced Energy Industries, Inc. was incorporated in 1981 and is headquartered in Denver, Colorado.