Analyzing Keysight Technologies (KEYS) and Danaher (DHR)

Keysight Technologies (NYSE: KEYS) and Danaher (NYSE:DHR) are both large-cap computer and technology companies, but which is the better stock? We will compare the two companies based on the strength of their earnings, risk, valuation, profitability, institutional ownership, dividends and analyst recommendations.

Analyst Ratings

This is a summary of recent ratings and recommmendations for Keysight Technologies and Danaher, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Keysight Technologies 0 1 8 0 2.89
Danaher 0 3 13 0 2.81

Keysight Technologies currently has a consensus target price of $59.50, suggesting a potential downside of 1.00%. Danaher has a consensus target price of $105.06, suggesting a potential upside of 5.81%. Given Danaher’s higher probable upside, analysts clearly believe Danaher is more favorable than Keysight Technologies.

Profitability

This table compares Keysight Technologies and Danaher’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Keysight Technologies 2.88% 19.18% 7.70%
Danaher 13.56% 11.39% 6.36%

Valuation & Earnings

This table compares Keysight Technologies and Danaher’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Keysight Technologies $3.19 billion 3.54 $102.00 million $2.23 26.95
Danaher $18.33 billion 3.78 $2.49 billion $4.03 24.64

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

Risk & Volatility

Keysight Technologies has a beta of 1.05, meaning that its stock price is 5% more volatile than the S&P 500. Comparatively, Danaher has a beta of 1.03, meaning that its stock price is 3% more volatile than the S&P 500.

Dividends

Danaher pays an annual dividend of $0.64 per share and has a dividend yield of 0.6%. Keysight Technologies does not pay a dividend. Danaher pays out 15.9% of its earnings in the form of a dividend.

Institutional and Insider Ownership

88.5% of Keysight Technologies shares are owned by institutional investors. Comparatively, 76.6% of Danaher shares are owned by institutional investors. 1.0% of Keysight Technologies shares are owned by company insiders. Comparatively, 11.9% of Danaher shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Summary

Danaher beats Keysight Technologies on 9 of the 16 factors compared between the two stocks.

Keysight Technologies Company Profile

Keysight Technologies, Inc. provides electronic design and test solutions to communications and electronics industries internationally. Its Communications Solutions Group segment provides radio frequency and microwave test instruments and related software, and electronic design automation (EDA) software tools; oscilloscopes, logic and serial protocol analyzers, logic-signal sources, arbitrary waveform generators, and bit error rate testers; optical modulation analyzers, component analyzers, power meters, and laser source products, as well as optical amplifier, filter, and other passive component solutions; and related software solutions. The company's Electronic Industrial Solutions Group segment offers design and design verification tools; and general purpose test and measurement products, such as digital multi-meters, function generators, waveform synthesizers, counters, data acquisition products, audio analyzers, LCR Meters, thermal imaging solutions, low-cost USB modular units, precision source measurement units, ultra-high precision device current analyzers, test executive software platforms, and a range of power supplies. This segment also offers comprehensive manufacturing systems, such as printed-circuit-board-assembly testers and IC parametric testers; and material analysis products that include atomic-force and scanning-electron microscopy products. Its Services Solutions Group segment provides repair, calibration, and consulting services; and remarkets used Keysight equipment, as well as asset tracking, servicing, and utilization requirements throughout the product life cycle. The company also offers start-up assistance, instrument productivity, and application services, as well as customization, consulting, and optimization services. Keysight Technologies, Inc. sells its products through direct sales force, distributors, resellers, and manufacturer's representatives. The company was incorporated in 2013 and is headquartered in Santa Rosa, California.

Danaher Company Profile

Danaher Corporation designs, manufactures, and markets professional, medical, industrial, and commercial products and services worldwide. The company's Life Sciences segment provides laser scanning, compound, surgical, and other stereo microscopes. This segment also offers filtration, separation, and purification technologies to the biopharmaceutical, food and beverage, medical, aerospace, microelectronics, and general industrial sectors. Its Diagnostics segment provides chemistry, immunoassay, microbiology, and automation systems, as well as hematology and flow cytometry products. The company offers analytical instruments, reagents, consumables, software, and services for hospitals, physicians' offices, reference laboratories, and other critical care settings. Its Dental segment provides consumables, equipment, and services to diagnose, treat, and prevent disease and ailments of the teeth, gums, and supporting bone. This segment offers implant systems, dental prosthetics, and associated treatment planning software; orthodontic bracket systems and lab products; endodontic systems and related consumables; restorative materials and instruments; infection prevention products; digital imaging systems and software; air and electric powered handpieces, and consumables; and treatment units. Its Environmental & Applied Solutions segment offers instrumentation, services, and disinfection systems to analyze, treat, and manage water in residential, commercial, industrial, and natural resource applications. This segment also provides equipment, software, services, and consumables for packaging, printing, marking, coding, and traceability applications for consumer, pharmaceutical, and industrial products. The company was formerly known as Diversified Mortgage Investors, Inc. and changed its name to Danaher Corporation in 1984. Danaher Corporation was founded in 1969 and is headquartered in Washington, the District of Columbia.

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