Mesa Laboratories (MLAB) versus Keysight Technologies (KEYS) Critical Comparison

Keysight Technologies (NYSE: KEYS) and Mesa Laboratories (NASDAQ:MLAB) are both computer and technology companies, but which is the better business? We will contrast the two businesses based on the strength of their earnings, profitability, risk, valuation, analyst recommendations, institutional ownership and dividends.

Institutional and Insider Ownership

88.2% of Keysight Technologies shares are owned by institutional investors. Comparatively, 67.4% of Mesa Laboratories shares are owned by institutional investors. 1.2% of Keysight Technologies shares are owned by insiders. Comparatively, 15.7% of Mesa Laboratories shares are owned 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 current recommendations for Keysight Technologies and Mesa Laboratories, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Keysight Technologies 0 2 8 0 2.80
Mesa Laboratories 0 0 1 0 3.00

Keysight Technologies presently has a consensus price target of $47.33, suggesting a potential upside of 10.10%. Given Keysight Technologies’ higher possible upside, analysts clearly believe Keysight Technologies is more favorable than Mesa Laboratories.

Dividends

Mesa Laboratories pays an annual dividend of $0.64 per share and has a dividend yield of 0.4%. Keysight Technologies does not pay a dividend. Mesa Laboratories pays out 22.9% of its earnings in the form of a dividend.

Profitability

This table compares Keysight Technologies and Mesa Laboratories’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Keysight Technologies 7.58% 20.85% 8.06%
Mesa Laboratories 11.31% 16.58% 9.37%

Valuation and Earnings

This table compares Keysight Technologies and Mesa Laboratories’ gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Keysight Technologies $3.06 billion 2.61 $550.00 million $1.33 32.32
Mesa Laboratories $95.22 million 6.13 $25.86 million $2.79 55.61

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

Volatility and Risk

Keysight Technologies has a beta of 1.15, meaning that its stock price is 15% more volatile than the S&P 500. Comparatively, Mesa Laboratories has a beta of 0.49, meaning that its stock price is 51% less volatile than the S&P 500.

Keysight Technologies Company Profile

Keysight Technologies, Inc. is a measurement company engaged in providing electronic design and test solutions to communications and electronics industries. The Company provides electronic design and test instruments and systems and related software, software design tools and related services that are used in the design, development, manufacture, installation, deployment and operation of electronics equipment. The Company operates through three segments: Communications Solutions Group (CSG), Electronic Industrial Solutions Group (EISG) and Services Solutions Group (SSG). The CSG and EISG segments provide electronic design and test software, instruments, and systems used in the simulation, design, validation, manufacturing, installation and optimization of electronic equipment. The SSG segment provides integrated service solutions, including repair and calibration services, professional services and remanufactured equipment.

Mesa Laboratories Company Profile

Mesa Laboratories, Inc. is focused primarily on quality control products and services. The Company operates through four segments: Instruments, Continuous Monitoring, Biological Indicators and Cold Chain. The Instruments Division designs, manufactures and markets quality control instruments and disposable products. Its Biological Indicators Division provides testing services, along with the manufacturing and marketing of biological indicators and distribution of chemical indicators used to assess the effectiveness of sterilization processes. Its Continuous Monitoring Division designs, develops and markets systems, which are used to monitor various environmental parameters. Its Cold Chain Division provides parameter (primarily temperature) monitoring of products in a cold chain. The Company’s brands include DataTrace, DialyGuard, DryCal, Torqo, SureTorque, BGI, Mesa, PCD, Apex, CheckPoint, Mesa and TempTrust.

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