MTS Systems Corporation (MTSC) vs. FARO Technologies (FARO) Financial Analysis
MTS Systems Corporation (NASDAQ: MTSC) and FARO Technologies (NASDAQ:FARO) are both small-cap computer and technology companies, but which is the better business? We will contrast the two businesses based on the strength of their valuation, dividends, profitabiliy, earnings, analyst recommendations, risk and institutional ownership.
Volatility & Risk
MTS Systems Corporation has a beta of 1.27, suggesting that its share price is 27% more volatile than the S&P 500. Comparatively, FARO Technologies has a beta of 1.23, suggesting that its share price is 23% more volatile than the S&P 500.
This table compares MTS Systems Corporation and FARO Technologies’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|MTS Systems Corporation||2.83%||12.81%||4.94%|
This is a summary of recent ratings and recommmendations for MTS Systems Corporation and FARO Technologies, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|MTS Systems Corporation||0||2||2||0||2.50|
MTS Systems Corporation currently has a consensus price target of $58.00, suggesting a potential upside of 8.41%. FARO Technologies has a consensus price target of $38.50, suggesting a potential upside of 7.24%. Given MTS Systems Corporation’s higher probable upside, analysts clearly believe MTS Systems Corporation is more favorable than FARO Technologies.
Valuation & Earnings
This table compares MTS Systems Corporation and FARO Technologies’ revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|MTS Systems Corporation||$765.25 million||1.17||$108.80 million||$1.22||43.85|
|FARO Technologies||$331.40 million||1.81||$21.45 million||$0.39||92.05|
MTS Systems Corporation has higher revenue and earnings than FARO Technologies. MTS Systems Corporation is trading at a lower price-to-earnings ratio than FARO Technologies, indicating that it is currently the more affordable of the two stocks.
Insider & Institutional Ownership
93.6% of FARO Technologies shares are held by institutional investors. 1.5% of MTS Systems Corporation shares are held by company insiders. Comparatively, 2.4% of FARO Technologies shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.
MTS Systems Corporation pays an annual dividend of $1.20 per share and has a dividend yield of 2.2%. FARO Technologies does not pay a dividend. MTS Systems Corporation pays out 98.4% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.
MTS Systems Corporation beats FARO Technologies on 9 of the 16 factors compared between the two stocks.
MTS Systems Corporation Company Profile
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.
FARO Technologies Company Profile
FARO Technologies, Inc. designs, develops, manufactures, markets and supports software driven, three-dimensional (3D) measurement, imaging and realization systems. The Company operates in three segments: Factory Metrology, Construction BIM-CIM and Other. It sells its products through a direct sales force across customers in a range of manufacturing, industrial, architecture, surveying, building construction and law enforcement applications. Its FaroArm, FARO Laser ScanArm, FARO Gage, FARO Laser Tracker, FARO Cobalt Array 3D Imager AMP, and their companion CAM2 software provide for Computer-Aided Design-based inspection and/or factory-level statistical process control and surveying. It operates in international markets throughout the world and maintain sales offices in Australia, Brazil, Canada, China, India, Italy, Japan, Malaysia, Mexico, the Netherlands, Poland, Portugal, Singapore, South Korea, Spain, Switzerland, Thailand, Turkey, the United Kingdom, the United States and Vietnam.
Receive News & Ratings for MTS Systems Corporation Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for MTS Systems Corporation and related companies with MarketBeat.com's FREE daily email newsletter.