Comparing MKS (NASDAQ:MKSI) and Energous (NASDAQ:WATT)

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

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Energous	$5.63 million	8.42	-$9.59 million	($2.21)	-3.88
MKS	$3.93 billion	3.70	$295.00 million	$6.27	34.26

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

Insider & Institutional Ownership

4.3% of Energous shares are held by institutional investors. Comparatively, 99.8% of MKS shares are held by institutional investors. 0.2% of Energous shares are held by insiders. Comparatively, 0.6% of MKS shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Energous and MKS, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Energous	1	1	0	0	1.50
MKS	1	2	12	1	2.81

MKS has a consensus target price of $375.93, suggesting a potential upside of 74.99%. Given MKS’s stronger consensus rating and higher probable upside, analysts clearly believe MKS is more favorable than Energous.

Risk & Volatility

Energous has a beta of 1.51, meaning that its stock price is 51% more volatile than the S&P 500. Comparatively, MKS has a beta of 2.03, meaning that its stock price is 103% more volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Energous	-76.37%	-28.67%	-24.91%
MKS	10.15%	24.72%	7.80%

Summary

MKS beats Energous on 14 of the 15 factors compared between the two stocks.

About Energous

Energous Corporation provides wireless charging system solutions in the United States. The company develops WattUp wireless power networks technology that consists of semiconductor chipsets; software controls; hardware designs; and antennas that enables radio frequency-based charging for Internet of Things devices. Its products are used in asset trackers; sensors; retail displays; and security devices; smart home; medical; industrial; and other sensors; electronic shelf labeling; logistics and asset tracking tags and sensors; computer mice and keyboards; remote controls; gaming consoles and controllers; hearing aids; rechargeable batteries; automotive accessories; smart textiles; wearables; and medical devices. The company was formerly known as DvineWave Inc. and changed its name to Energous Corporation in January 2014. Energous Corporation was incorporated in 2012 and is headquartered in San Jose; California.

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.