MKS (NASDAQ:MKSI) & Key Tronic (NASDAQ:KTCC) Critical Comparison

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

Insider and Institutional Ownership

40.7% of Key Tronic shares are owned by institutional investors. Comparatively, 99.8% of MKS shares are owned by institutional investors. 7.9% of Key Tronic shares are owned by insiders. Comparatively, 0.5% of MKS shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Earnings & Valuation

This table compares Key Tronic and MKS”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Key Tronic	$467.87 million	0.07	-$8.32 million	($1.09)	-2.60
MKS	$3.59 billion	4.46	$190.00 million	$4.12	57.76

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

Volatility and Risk

Key Tronic has a beta of 1.1, indicating that its share price is 10% more 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.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Key Tronic and MKS, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Key Tronic	1	0	0	0	1.00
MKS	1	2	10	1	2.79

MKS has a consensus price target of $231.50, indicating a potential downside of 2.71%. Given MKS’s stronger consensus rating and higher possible upside, analysts plainly believe MKS is more favorable than Key Tronic.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Key Tronic	-2.69%	-8.43%	-3.06%
MKS	7.25%	20.80%	5.88%

Summary

MKS beats Key Tronic on 14 of the 15 factors compared between the two stocks.

About Key Tronic

Key Tronic Corporation provides contract manufacturing services to original equipment manufacturers in the United States and internationally. The company offers integrated electronic and mechanical engineering, assembly, sourcing and procurement, logistics, and new product testing services. Its services include product design; surface mount technologies and pin through hole capability for printed circuit board assembly; tool making; precision plastic molding; sheet metal fabrication and painting; liquid injection molding; complex assembly; prototype design; and full product assembly services. The company manufactures and sells keyboards and other input devices. It markets its products and services primarily through field sales people and distributors. Key Tronic Corporation was incorporated in 1969 and is headquartered in Spokane Valley, Washington.

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.