Financial Analysis: MKS (NASDAQ:MKSI) & ESS Tech (NYSE:GWH)

ESS Tech (NYSE:GWHGet Free Report) and MKS (NASDAQ:MKSIGet Free Report) are both computer and technology companies, but which is the superior investment? We will contrast the two companies based on the strength of their valuation, earnings, analyst recommendations, dividends, risk, profitability and institutional ownership.

Valuation & Earnings

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

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
ESS Tech $6.30 million 7.17 -$86.22 million ($5.10) -0.45
MKS $3.59 billion 3.09 $190.00 million $4.12 40.09

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

Profitability

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

Net Margins Return on Equity Return on Assets
ESS Tech -1,045.28% -592.34% -125.15%
MKS 7.25% 20.80% 5.88%

Insider & Institutional Ownership

46.8% of ESS Tech shares are owned by institutional investors. Comparatively, 99.8% of MKS shares are owned by institutional investors. 1.7% of ESS Tech shares are owned by company insiders. Comparatively, 0.5% of MKS shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Analyst Ratings

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

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
ESS Tech 1 5 1 0 2.00
MKS 1 3 9 0 2.62

ESS Tech currently has a consensus price target of $2.88, suggesting a potential upside of 24.84%. MKS has a consensus price target of $159.64, suggesting a potential downside of 3.36%. Given ESS Tech’s higher probable upside, equities research analysts plainly believe ESS Tech is more favorable than MKS.

Risk & Volatility

ESS Tech has a beta of 1.43, meaning that its share price is 43% more volatile than the S&P 500. Comparatively, MKS has a beta of 1.93, meaning that its share price is 93% more volatile than the S&P 500.

Summary

MKS beats ESS Tech on 11 of the 14 factors compared between the two stocks.

About ESS Tech

(Get Free Report)

ESS Tech, Inc., an energy storage company, designs and produces iron flow batteries for commercial and utility-scale energy storage applications worldwide. It offers energy storage products, which include Energy Warehouse, a behind-the-meter solution; and Energy Center, a front-of-the-meter solution. The company was founded in 2011 and is headquartered in Wilsonville, Oregon.

About MKS

(Get Free Report)

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.

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