Contrasting MKS (NASDAQ:MKSI) & XCHG (NASDAQ:XCH)

MKS (NASDAQ:MKSI) and XCHG (NASDAQ:XCH) are both computer and technology companies, but which is the superior investment? We will compare the two businesses based on the strength of their analyst recommendations, dividends, profitability, valuation, earnings, institutional ownership and risk.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for MKS and XCHG, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
MKS	1	3	8	0	2.58
XCHG	1	0	0	0	1.00

MKS currently has a consensus price target of $171.10, indicating a potential upside of 4.21%. Given MKS’s stronger consensus rating and higher probable upside, equities analysts plainly believe MKS is more favorable than XCHG.

Volatility & Risk

MKS has a beta of 1.93, suggesting that its share price is 93% more volatile than the S&P 500. Comparatively, XCHG has a beta of -0.78, suggesting that its share price is 178% less volatile than the S&P 500.

Valuation & Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
MKS	$3.59 billion	3.08	$190.00 million	$4.12	39.85
XCHG	$34.50 million	2.08	-$11.94 million	($0.08)	-15.13

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

Insider and Institutional Ownership

99.8% of MKS shares are owned by institutional investors. 0.6% of MKS shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
MKS	7.25%	20.80%	5.88%
XCHG	N/A	N/A	N/A

Summary

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

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.

About XCHG

XCHG Limited, branded as XCharge, is a company whose subsidiaries design, manufacture, and sell electric vehicle (EV) charging solutions under the X-Charge name in Europe, China, the United States, and other international markets. The company focuses on DC fast-charging infrastructure, including its C6 and C7 series chargers and Net Zero battery-integrated fast-charging systems, and also provides related software upgrades and hardware maintenance services for EV manufacturers, energy companies, and charge point operators. Founded in 2015, XCHG positions itself as a global provider of integrated EV charging solutions that combine high-power charging with smart energy management.