Head-To-Head Comparison: Anixter International (AXE) and MTS Systems Corporation (MTSC)
Anixter International (NYSE: AXE) and MTS Systems Corporation (NASDAQ:MTSC) are both computer and technology companies, but which is the better business? We will compare the two companies based on the strength of their earnings, institutional ownership, dividends, profitability, analyst recommendations, risk and valuation.
This is a breakdown of current recommendations and price targets for Anixter International and MTS Systems Corporation, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|MTS Systems Corporation||0||1||2||0||2.67|
Anixter International presently has a consensus price target of $86.00, indicating a potential upside of 17.81%. MTS Systems Corporation has a consensus price target of $58.00, indicating a potential upside of 20.21%. Given MTS Systems Corporation’s stronger consensus rating and higher possible upside, analysts plainly believe MTS Systems Corporation is more favorable than Anixter International.
Institutional and Insider Ownership
85.6% of Anixter International shares are owned by institutional investors. 14.7% of Anixter International shares are owned by insiders. Comparatively, 1.5% of MTS Systems Corporation shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.
This table compares Anixter International and MTS Systems Corporation’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|MTS Systems Corporation||3.13%||12.49%||4.31%|
Volatility and Risk
Anixter International has a beta of 1.98, meaning that its stock price is 98% more volatile than the S&P 500. Comparatively, MTS Systems Corporation has a beta of 1.28, meaning that its stock price is 28% more volatile than the S&P 500.
Earnings and Valuation
This table compares Anixter International and MTS Systems Corporation’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Anixter International||$7.75 billion||0.31||$382.00 million||$4.39||16.63|
|MTS Systems Corporation||$801.32 million||1.02||$113.92 million||$1.31||36.83|
Anixter International has higher revenue and earnings than MTS Systems Corporation. Anixter International is trading at a lower price-to-earnings ratio than MTS Systems Corporation, indicating that it is currently the more affordable of the two stocks.
MTS Systems Corporation pays an annual dividend of $1.20 per share and has a dividend yield of 2.5%. Anixter International does not pay a dividend. MTS Systems Corporation pays out 91.6% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.
About Anixter International
Anixter International Inc. is engaged in the distribution of enterprise cabling and security solutions, electrical and electronic wire and cable products and utility power solutions. The Company operates through three segments: Network & Security Solutions (NSS), Electrical & Electronic Solutions (EES), and Utility Power Solutions (UPS). The NSS segment’s product portfolio includes access control, power, cable management, wireless, professional audio/video, voice and networking switches, and other ancillary products. The EES segment’s product portfolio includes electrical and electronic wire and cable, shipboard cable, support and supply products, low-voltage cable, instrumentation cable, industrial communication and control products, security cable, connectors, industrial Ethernet switches, and voice and data cable. The UPS segment supplies electrical transmission and distribution products, power plant maintenance, repair and operations supplies, and smart-grid products.
About MTS Systems Corporation
MTS Systems Corporation is a supplier of test systems and position sensors. The Company operates through two segments: Test and Sensors. The Test segment provides testing solutions, including hardware, software and services to ground vehicles, materials and structures markets. The Sensors segment provides position sensors for a range of industrial and mobile hydraulic applications. The Sensors segment products are used by industrial machinery and mobile equipment manufacturers to automate the operation of their products for safety and end-user productivity. The Sensors segment manufactures products utilizing magnetostriction technology. Its technology, Temposonics, offers non-contact position sensing. Its Temposonics sensors provide position feedback for motion control systems. It also provides various service offerings, including calibration, maintenance, training and consulting. The Company has its manufacturing facilities in North America, Europe and Asia.
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