Advanced Energy Industries (NASDAQ:AEIS) & Keysight Technologies (NYSE:KEYS) Critical Comparison

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

Earnings and Valuation

This table compares Advanced Energy Industries and Keysight Technologies”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Advanced Energy Industries	$1.80 billion	6.30	$148.40 million	$5.36	52.81
Keysight Technologies	$5.38 billion	11.42	$850.00 million	$7.28	49.54

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

Profitability

This table compares Advanced Energy Industries and Keysight Technologies’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Advanced Energy Industries	10.77%	20.75%	10.39%
Keysight Technologies	19.08%	24.34%	13.10%

Analyst Recommendations

This is a summary of current ratings and recommmendations for Advanced Energy Industries and Keysight Technologies, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Advanced Energy Industries	0	2	11	1	2.93
Keysight Technologies	0	2	11	1	2.93

Advanced Energy Industries presently has a consensus price target of $409.50, indicating a potential upside of 44.66%. Keysight Technologies has a consensus price target of $392.83, indicating a potential upside of 8.92%. Given Advanced Energy Industries’ higher probable upside, research analysts plainly believe Advanced Energy Industries is more favorable than Keysight Technologies.

Insider & Institutional Ownership

99.7% of Advanced Energy Industries shares are owned by institutional investors. Comparatively, 84.6% of Keysight Technologies shares are owned by institutional investors. 1.3% of Advanced Energy Industries shares are owned by insiders. Comparatively, 0.4% of Keysight Technologies shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Risk and Volatility

Advanced Energy Industries has a beta of 1.31, suggesting that its stock price is 31% more volatile than the S&P 500. Comparatively, Keysight Technologies has a beta of 1.21, suggesting that its stock price is 21% more volatile than the S&P 500.

Summary

Keysight Technologies beats Advanced Energy Industries on 7 of the 12 factors compared between the two stocks.

About Advanced Energy Industries

Advanced Energy Industries, Inc. provides precision power conversion, measurement, and control solutions in the United States and internationally. The company's plasma power products offer solutions to enable innovation for semiconductor and thin film plasma processes, such as dry etch and deposition. It also provides high and low voltage power products used in a range of applications, such as semiconductor equipment, industrial production, medical and life science equipment, data centers computing, networking, and telecommunications. In addition, the company supplies sensing, controls, and instrumentation products for advanced measurement and calibration of power and temperature. Further, the company provides calibration, conversions, upgrades, and refurbishments and used equipment to companies, as well as repair services. Further, it offers warranty and after-market repair services. It offers its products through a direct sales force, independent sales representatives, channel partners, and distributors. Advanced Energy Industries, Inc. was incorporated in 1981 and is headquartered in Denver, Colorado.

About Keysight Technologies

Keysight Technologies, Inc. provides electronic design and test solutions to commercial communications, networking, aerospace, defense and government, automotive, energy, semiconductor, electronic, and education industries in the Americas, Europe, and the Asia Pacific. The company operates in two segments, Communications Solutions Group and Electronic Industrial Solutions Group. It offers electronic design automation (EDA) software; instrument measurement software, instrument workflow software, and software testing; digital multimeter, phase noise measurement, power meters and power sensors, counters, LCR meters and impedance measurement products, and electrometers; and spectrum analyzers, network analyzers, logic analyzers, protocol analyzers and exercisers, bit error ratio testers, noise figure analyzers, AC and DC power analyzers, materials test equipment, device current waveform analyzers, and curve tracers. The company also provides waveform and function generators, arbitrary waveform generators, DC power supplies, and DC electronic loads; wireless drive test, radio access and core network test, wireless analyzers, wireless network emulators, and over-the-air test; application and threat intelligence, cloud test, cyber training simulator, network test hardware, synthetic traffic generators, protocol and load test, network security test, and network modeling; bypass switches, clock synchronization, cloud visibility, network and application monitoring, network packet brokers, and network taps; and application-specific test systems, photonic test and measurement products, and MMIC millimeter-wave and microwave devices. In addition, it offers product support, technical support, installation, training, engineering, and integration services. The company sells its products through direct sales force, distributors, resellers, and manufacturer's representatives. Keysight Technologies, Inc. was founded in 1939 and is headquartered in Santa Rosa, California.