Contrasting MTS Systems (MTSC) & MEGGITT PLC/ADR (MEGGY)

MTS Systems (NASDAQ:MTSC) and MEGGITT PLC/ADR (OTCMKTS:MEGGY) are both computer and technology companies, but which is the better business? We will contrast the two businesses based on the strength of their analyst recommendations, dividends, profitability, risk, earnings, valuation and institutional ownership.

Profitability

This table compares MTS Systems and MEGGITT PLC/ADR’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
MTS Systems 7.88% 8.06% 3.30%
MEGGITT PLC/ADR N/A N/A N/A

Risk & Volatility

MTS Systems has a beta of 1.01, indicating that its stock price is 1% more volatile than the S&P 500. Comparatively, MEGGITT PLC/ADR has a beta of 1.11, indicating that its stock price is 11% more volatile than the S&P 500.

Earnings and Valuation

This table compares MTS Systems and MEGGITT PLC/ADR’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
MTS Systems $778.03 million 1.11 $61.32 million $3.28 14.70
MEGGITT PLC/ADR $2.70 billion 1.92 N/A N/A N/A

MTS Systems has higher earnings, but lower revenue than MEGGITT PLC/ADR.

Dividends

MTS Systems pays an annual dividend of $1.20 per share and has a dividend yield of 2.5%. MEGGITT PLC/ADR pays an annual dividend of $0.24 per share and has a dividend yield of 1.8%. MTS Systems pays out 36.6% of its earnings in the form of a dividend. MTS Systems has raised its dividend for 7 consecutive years. MTS Systems is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Analyst Ratings

This is a summary of recent ratings for MTS Systems and MEGGITT PLC/ADR, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
MTS Systems 0 0 1 0 3.00
MEGGITT PLC/ADR 0 1 0 0 2.00

MTS Systems currently has a consensus price target of $70.00, suggesting a potential upside of 45.14%. Given MTS Systems’ stronger consensus rating and higher possible upside, equities analysts clearly believe MTS Systems is more favorable than MEGGITT PLC/ADR.

Institutional and Insider Ownership

97.1% of MTS Systems shares are owned by institutional investors. Comparatively, 0.0% of MEGGITT PLC/ADR shares are owned by institutional investors. 1.8% of MTS Systems shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Summary

MTS Systems beats MEGGITT PLC/ADR on 10 of the 14 factors compared between the two stocks.

About MTS Systems

MTS Systems Corporation supplies test systems and sensors in the Americas, Europe, and Asia. The company's Test segment offers road simulators and component test systems for durability testing; vehicle performance test systems; vehicle dynamics simulators; electrical motors and energy recovery systems; tire performance and rolling resistance measurement systems; and moving ground-plane systems and balances. It also provides systems for the physical characterization of material properties, including ceramics, composites, and steel; systems to test durability and performance of implants, prostheses, and other medical and dental materials and devices; products, systems, and software to perform static and fatigue testing of aircraft and space vehicles; products for blades, bearings, and wind turbines; structural engineering systems, such as static and dynamic testing; and seismic simulation tables. In addition, this segment offers installation, professional training, calibration and metrology, technical consulting, and onsite and factory repair and maintenance services, as well as various accessories and spare parts. It serves automobile, truck, motorcycle, motorsports vehicle, construction equipment, agricultural equipment, rail, and off-road vehicle manufacturers and their suppliers, as well as power generation, aerospace, bio-medical, wind energy, oil and gas, structural engineering, and other industries. The company's Sensors segment offers sensors for acceleration, position, vibration, motion, pressure, force, and sound measurement; and piezoelectric sensors and components for vibration, pressure, and force measurement. It serves automotive, aerospace, industrial, defense, and research and development markets. The company sells its products through direct sales and service organizations, and independent distributors, as well as through catalogs, Internet, etc. MTS Systems Corporation was founded in 1966 and is headquartered in Eden Prairie, Minnesota.

About MEGGITT PLC/ADR

Meggitt PLC designs and manufactures components and sub-systems for aerospace, defense, energy, medical, industrial, test, and automotive markets in the United Kingdom, rest of Europe, the United States, and internationally. It operates through Meggitt Aircraft Braking Systems, Meggitt Control Systems, Meggitt Polymers & Composites, Meggitt Sensing Systems, and Meggitt Equipment Group segments. The Meggitt Aircraft Braking Systems segment offers anti-skid, auto braking, brake-by-wire, and integrated brake metering/anti-skid brake control systems; carbon, rotor, electrically-actuated, and steel brakes; integrated tire pressure indicator systems/brake temperature monitoring systems; and landing gear computers, park/emergency valves, auto spoiler deployment, other braking system hydraulic components, main and nose wheels, and tire pressure monitoring systems. The Meggitt Control Systems segment provides aerospace valves, air-oil separators, and retimet filters; heat exchangers; high pressure ducting and flexible joints; and industrial fuel and bleed air control valves, and ground fueling products, as well as aircraft fire protection and control systems. The Meggitt Polymers & Composites segment offers fuel containments and systems, sealing solutions, and advanced composites for the aerospace, marine, and energy sectors. The Meggitt Sensing Systems segment provides sensing, monitoring, power, and motion systems for the aerospace and defense, energy, industrial, and specialty sectors. The Meggitt Equipment Group segment primarily engages in the non-engine actuation, military, and printed circuit heat exchangers businesses. The company was formerly known as Meggitt Holdings Public Limited Company and changed its name to Meggitt PLC in April 1989. Meggitt PLC was founded in 1947 and is based in Christchurch, the United Kingdom.

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