Reviewing Mistras Group (NYSE:MG) and MKS (NASDAQ:MKSI)

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
MKS	8.06%	21.49%	6.54%
Mistras Group	3.06%	13.60%	5.35%

Volatility and Risk

MKS has a beta of 1.93, meaning that its stock price is 93% more volatile than the S&P 500. Comparatively, Mistras Group has a beta of 0.88, meaning that its stock price is 12% less volatile than the S&P 500.

Institutional and Insider Ownership

99.8% of MKS shares are held by institutional investors. Comparatively, 74.9% of Mistras Group shares are held by institutional investors. 0.6% of MKS shares are held by insiders. Comparatively, 7.1% of Mistras Group shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Analyst Ratings

This is a summary of recent recommendations for MKS and Mistras Group, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
MKS	1	2	11	2	2.88
Mistras Group	0	2	1	0	2.33

MKS currently has a consensus target price of $374.07, suggesting a potential downside of 9.00%. Mistras Group has a consensus target price of $19.00, suggesting a potential upside of 10.22%. Given Mistras Group’s higher probable upside, analysts plainly believe Mistras Group is more favorable than MKS.

Valuation & Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
MKS	$3.93 billion	7.06	$295.00 million	$4.78	85.99
Mistras Group	$724.02 million	0.76	$16.84 million	$0.70	24.63

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

Summary

MKS beats Mistras Group 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 Mistras Group

Mistras Group, Inc. provides technology-enabled asset protection solutions in the United States, other Americas, Europe, and the Asia-Pacific. The company offers non-destructive testing services; inline inspection for pipelines; and plant condition management software. It also provides maintenance and light mechanical services, such as corrosion removal, mitigation and prevention, insulation installation and removal, electrical, heat tracing, industrial cleaning, pipefitting, and welding; engineering consulting services primarily for process equipment, technologies, and facilities; and utilizes scaffolding and rope access to access at-height and confined assets. In addition, the company offers certified divers for subsea inspection and maintenance; unmanned aerial, land-based, and subsea systems for inspection applications; online condition-monitoring solutions; quality assurance and quality control solutions for new and existing metal and alloy components, materials, and composites. Further, it builds monitoring systems, as well as provides inspection, maintenance, monitoring and data services; and Web-based solutions. Additionally, the company designs, manufactures, and sells acoustic emission sensors, instruments, and turnkey systems for monitoring and testing materials, pressure components, processes, and structures; and ultrasonic testing equipment. It serves oil and gas, aerospace and defense, fossil and nuclear power, power generation and transmission, civil infrastructure, manufacturing, industrial, public infrastructure, petrochemical, transportation, and other process industries, as well as infrastructure, research, and engineering industries. Mistras Group, Inc. was founded in 1978 and is headquartered in Princeton Junction, New Jersey.