Critical Review: Keysight Technologies (NYSE:KEYS) and Perceptron (PRCP)

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

Analyst Ratings

This is a summary of current ratings and recommmendations for Perceptron and Keysight Technologies, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Perceptron 0 0 2 0 3.00
Keysight Technologies 0 2 8 0 2.80

Perceptron currently has a consensus target price of $8.50, suggesting a potential upside of 20.40%. Keysight Technologies has a consensus target price of $46.33, suggesting a potential upside of 11.67%. Given Perceptron’s stronger consensus rating and higher probable upside, equities analysts plainly believe Perceptron is more favorable than Keysight Technologies.

Profitability

This table compares Perceptron and Keysight Technologies’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Perceptron -21.55% 2.32% 1.34%
Keysight Technologies 11.61% 22.62% 9.03%

Risk and Volatility

Perceptron has a beta of 0.54, suggesting that its stock price is 46% less volatile than the S&P 500. Comparatively, Keysight Technologies has a beta of 1.15, suggesting that its stock price is 15% more volatile than the S&P 500.

Insider & Institutional Ownership

63.1% of Perceptron shares are owned by institutional investors. Comparatively, 88.0% of Keysight Technologies shares are owned by institutional investors. 10.3% of Perceptron shares are owned by insiders. Comparatively, 1.2% of Keysight Technologies shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Earnings & Valuation

This table compares Perceptron and Keysight Technologies’ top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Perceptron $74.37 million 0.89 $4.99 million ($1.70) -4.15
Keysight Technologies $2.95 billion 2.61 $611.00 million $1.96 21.17

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

Summary

Keysight Technologies beats Perceptron on 10 of the 14 factors compared between the two stocks.

About Perceptron

Perceptron, Inc. develops, produces and sells a range of automated industrial metrology products and solutions to manufacturing organizations for dimensional gauging, dimensional inspection and three-dimensional (3D) scanning. The Company’s products include 3D machine vision solutions, robot guidance, coordinate measuring machines (CMMs), laser scanning and advanced analysis software. The Company’s products are categorized as In-Line, Near-Line and Off-Line Measurement Solutions (Measurement Solutions); 3D Scanning Solutions, and Value Added Services. Its In-Line and Near-Line measurement solutions include AutoGauge, AutoFit, AutoScan, AutoGuide and Helix. Its Off-Line measurement solutions include Coord3 and TouchDMIS. Its 3D Scanning Solutions include ScanWorks, ScanR and WheelWorks. Its Value Added Services include training, field service, calibration, launch support services, maintenance agreements and repairs. The Company operates in the Americas, Europe and Asia.

About Keysight Technologies

Keysight Technologies, Inc. is a measurement company engaged in providing electronic design and test solutions to communications and electronics industries. The Company provides electronic design and test instruments and systems and related software, software design tools and related services that are used in the design, development, manufacture, installation, deployment and operation of electronics equipment. The Company operates through three segments: Communications Solutions Group (CSG), Electronic Industrial Solutions Group (EISG) and Services Solutions Group (SSG). The CSG and EISG segments provide electronic design and test software, instruments, and systems used in the simulation, design, validation, manufacturing, installation and optimization of electronic equipment. The SSG segment provides integrated service solutions, including repair and calibration services, professional services and remanufactured equipment.

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