Hayward (NYSE:HAYW) and MKS (NASDAQ:MKSI) Critical Review

Hayward (NYSE:HAYW) and MKS (NASDAQ:MKSI) are both mid-cap computer and technology companies, but which is the better investment? We will compare the two companies based on the strength of their profitability, institutional ownership, analyst recommendations, dividends, risk, earnings and valuation.

Valuation & Earnings

This table compares Hayward and MKS”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Hayward	$1.05 billion	3.21	$118.65 million	$0.58	26.82
MKS	$3.59 billion	2.18	$190.00 million	$3.94	29.54

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

Volatility & Risk

Hayward has a beta of 1.13, indicating that its share price is 13% more volatile than the S&P 500. Comparatively, MKS has a beta of 1.94, indicating that its share price is 94% more volatile than the S&P 500.

Insider & Institutional Ownership

99.8% of MKS shares are held by institutional investors. 5.1% of Hayward shares are held by insiders. Comparatively, 0.5% of MKS shares are held by 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.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Hayward	12.04%	11.07%	5.34%
MKS	7.11%	20.65%	5.68%

Analyst Ratings

This is a summary of recent recommendations and price targets for Hayward and MKS, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Hayward	0	4	1	0	2.20
MKS	1	2	8	0	2.64

Hayward presently has a consensus price target of $17.50, suggesting a potential upside of 12.48%. MKS has a consensus price target of $119.80, suggesting a potential upside of 2.94%. Given Hayward’s higher possible upside, research analysts plainly believe Hayward is more favorable than MKS.

Summary

MKS beats Hayward on 10 of the 14 factors compared between the two stocks.

About Hayward

Hayward Holdings, Inc. designs, manufactures, and markets a portfolio of pool equipment and associated automation systems in North America, Europe, and internationally. The company offers pool equipment, including pumps, filters, robotics, suction and pressure cleaners, gas heaters and heat pumps, water features and landscape lighting, water sanitizers, salt chlorine generators, safety equipment, and in-floor automated cleaning systems, as well as LED illumination solutions. It sells its products through specialty distributors, retailers, and buying groups. The company was founded in 1925 and is headquartered in Charlotte, North Carolina.

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.