Analyzing MTS Systems (MTSC) and OYO Geospace (GEOS)

MTS Systems (NASDAQ: MTSC) and OYO Geospace (NASDAQ:GEOS) are both small-cap computer and technology companies, but which is the superior stock? We will compare the two companies based on the strength of their analyst recommendations, profitability, earnings, valuation, dividends, institutional ownership and risk.

Dividends

MTS Systems pays an annual dividend of $1.20 per share and has a dividend yield of 2.2%. OYO Geospace does not pay a dividend. MTS Systems pays out 54.1% of its earnings in the form of a dividend.

Insider & Institutional Ownership

98.5% of MTS Systems shares are held by institutional investors. Comparatively, 78.9% of OYO Geospace shares are held by institutional investors. 1.8% of MTS Systems shares are held by company insiders. Comparatively, 3.9% of OYO Geospace shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Earnings and Valuation

This table compares MTS Systems and OYO Geospace’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
MTS Systems $787.96 million 1.22 $25.08 million $2.22 24.35
OYO Geospace $73.72 million 2.29 -$56.79 million N/A N/A

MTS Systems has higher revenue and earnings than OYO Geospace.

Volatility & Risk

MTS Systems has a beta of 1.01, meaning that its stock price is 1% more volatile than the S&P 500. Comparatively, OYO Geospace has a beta of 1.4, meaning that its stock price is 40% more volatile than the S&P 500.

Profitability

This table compares MTS Systems and OYO Geospace’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
MTS Systems 7.40% 8.03% 3.05%
OYO Geospace -66.59% -24.62% -23.36%

Analyst Recommendations

This is a summary of current ratings and recommmendations for MTS Systems and OYO Geospace, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
MTS Systems 0 0 2 0 3.00
OYO Geospace 0 0 0 0 N/A

MTS Systems presently has a consensus price target of $70.00, suggesting a potential upside of 29.51%. Given MTS Systems’ higher possible upside, equities research analysts plainly believe MTS Systems is more favorable than OYO Geospace.

Summary

MTS Systems beats OYO Geospace on 9 of the 13 factors compared between the two stocks.

About MTS Systems

MTS Systems Corporation supplies test systems and sensors in the Americas, Europe, and Asia. The company's Test segment offers road simulators and component test systems for durability testing; vehicle performance test systems; vehicle dynamics simulators; electrical motors and energy recovery systems; tire performance and rolling resistance measurement systems; and moving ground-plane systems and balances. It also provides systems for the physical characterization of material properties, including ceramics, composites, and steel; systems to test durability and performance of implants, prostheses, and other medical and dental materials and devices; products, systems, and software to perform static and fatigue testing of aircraft and space vehicles; products for blades, bearings, and wind turbines; structural engineering systems, such as static and dynamic testing; and seismic simulation tables. In addition, this segment offers installation, professional training, calibration and metrology, technical consulting, and onsite and factory repair and maintenance services, as well as various accessories and spare parts. It serves automobile, truck, motorcycle, motorsports vehicle, construction equipment, agricultural equipment, rail, and off-road vehicle manufacturers and their suppliers, as well as power generation, aerospace, bio-medical, wind energy, oil and gas, structural engineering, and other industries. The company's Sensors segment offers sensors for acceleration, position, vibration, motion, pressure, force, and sound measurement; and piezoelectric sensors and components for vibration, pressure, and force measurement. It serves automotive, aerospace, industrial, defense, and research and development markets. The company sells its products through direct sales and service organizations, and independent distributors, as well as through catalogs, Internet, etc. MTS Systems Corporation was founded in 1966 and is headquartered in Eden Prairie, Minnesota.

About OYO Geospace

Geospace Technologies Corporation designs and manufactures instruments and equipment used in the oil and gas industry to acquire seismic data in order to locate, characterize, and monitor hydrocarbon producing reservoirs. The company operates through two segments, Seismic and Non-Seismic. The Seismic segment offers land and marine nodal data acquisition systems, permanent land and seabed reservoir monitoring products and services, geophones and geophone strings, hydrophones, leader wires, connectors, telemetry cables, marine streamer retrieval and steering devices, multi-component sensors, seismic borehole acquisition systems, and various other products. The Non-Seismic segment offers electronic pre-press products that employ direct thermal imaging and digital inkjet printing technologies targeted at the commercial graphics, industrial graphics, textile, and flexographic printing industries. This segment also provides other non-seismic products that consist of sensors and tools for vibration monitoring, mine safety application, and earthquake detection; cables for power and communication for the offshore oil and gas, and offshore construction industries; water meter cables and connectors; and other specialty industrial cable and connector products. The company serves seismic contractors, and independent and government-owned oil and gas companies; direct users of equipment; specialized resellers; and specialty manufacturers, research institutions, and industrial product distributors. It operates in the United States, Canada, Asia, Europe, and internationally. Geospace Technologies Corporation was founded in 1980 and is headquartered in Houston, Texas.

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