Fortive (FTV) and Keysight (KEYS) Head-To-Head Analysis

Fortive (NYSE: FTV) and Keysight (NYSE:KEYS) are both large-cap computer and technology companies, but which is the superior investment? We will compare the two companies based on the strength of their analyst recommendations, dividends, valuation, earnings, profitability, risk and institutional ownership.

Volatility & Risk

Fortive has a beta of 0.51, indicating that its stock price is 49% less volatile than the S&P 500. Comparatively, Keysight has a beta of 1.01, indicating that its stock price is 1% more volatile than the S&P 500.

Earnings & Valuation

This table compares Fortive and Keysight’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Fortive $6.66 billion 3.99 $1.04 billion $2.89 26.34
Keysight $3.19 billion 3.21 $102.00 million $2.23 24.14

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

Analyst Ratings

This is a summary of recent recommendations for Fortive and Keysight, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Fortive 0 6 5 0 2.45
Keysight 0 2 8 0 2.80

Fortive presently has a consensus target price of $80.00, suggesting a potential upside of 5.11%. Keysight has a consensus target price of $55.11, suggesting a potential upside of 2.38%. Given Fortive’s higher probable upside, equities research analysts plainly believe Fortive is more favorable than Keysight.

Profitability

This table compares Fortive and Keysight’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Fortive 16.12% 29.86% 11.17%
Keysight 2.64% 18.19% 7.01%

Dividends

Fortive pays an annual dividend of $0.28 per share and has a dividend yield of 0.4%. Keysight does not pay a dividend. Fortive pays out 9.7% of its earnings in the form of a dividend.

Institutional & Insider Ownership

79.4% of Fortive shares are owned by institutional investors. Comparatively, 87.3% of Keysight shares are owned by institutional investors. 12.2% of Fortive shares are owned by company insiders. Comparatively, 1.0% of Keysight shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Summary

Fortive beats Keysight on 11 of the 16 factors compared between the two stocks.

About Fortive

Fortive Corporation designs, develops, manufactures, markets, and services professional and engineered products, software, and services worldwide. Its Professional Instrumentation segment provides test tools, and thermal imaging and calibration equipment for electrical, industrial, electronic, and calibration applications; online condition-based monitoring equipment; portable gas detection equipment, consumables, and software as a service offerings; subscription-based technical, analytical, and compliance services; and maintenance management software for critical infrastructure in utility, industrial, energy, construction, public safety, mining, and healthcare applications. This segment also provides product realization services and products that help developers and engineers across the end-to-end product creation cycle from concepts to finished products; materials components; and devices that sense, monitor, and control operational or manufacturing variables. This segment markets its products and services under the FLUKE, FLUKE BIOMEDICAL, FLUKE NETWORKS, INDUSTRIAL SCIENTIFIC, LANDAUER, QUALITROL, INVETECH, KEITHLEY, PACIFIC SCIENTIFIC ENERGETIC MATERIALS COMPANY, SONIX, and TEKTRONIX brands. Its Industrial Technologies segment offers solutions and services for use in fuel dispensing, remote fuel management, point-of-sale and payment systems, environmental compliance, vehicle tracking, and fleet and traffic management under the ANGI, GASBOY, GILBARCO, GILBARCO AUTOTANK, ORPAK, and VEEDER-ROOT brands; and various electromechanical and electronic motion control products, mechanical components, and supplemental braking systems for commercial vehicles under the DYNAPAR, HENGSTLER, JAKE BRAKE, KOLLMORGEN, PORTESCAP, and THOMSON brands. It also offers professional tools, toolboxes, and automotive diagnostic equipment under the MATCO brand; and wheel service equipment under the COATS brand. The company was incorporated in 2016 and is headquartered in Everett, Washington.

About Keysight

Keysight Technologies, Inc. provides electronic design and test solutions to communications and electronics industries internationally. Its Communications Solutions Group segment provides radio frequency and microwave test instruments and related software, and electronic design automation (EDA) software tools; oscilloscopes, logic and serial protocol analyzers, logic-signal sources, arbitrary waveform generators, and bit error rate testers; optical modulation analyzers, component analyzers, power meters, and laser source products, as well as optical amplifier, filter, and other passive component solutions; and related software solutions. The company's Electronic Industrial Solutions Group segment offers design and design verification tools; and general purpose test and measurement products, such as digital multi-meters, function generators, waveform synthesizers, counters, data acquisition products, audio analyzers, LCR Meters, thermal imaging solutions, low-cost USB modular units, precision source measurement units, ultra-high precision device current analyzers, test executive software platforms, and a range of power supplies. This segment also offers comprehensive manufacturing systems, such as printed-circuit-board-assembly testers and IC parametric testers; and material analysis products that include atomic-force and scanning-electron microscopy products. Its Services Solutions Group segment provides repair, calibration, and consulting services; and remarkets used Keysight equipment, as well as asset tracking, servicing, and utilization requirements throughout the product life cycle. The company also offers start-up assistance, instrument productivity, and application services, as well as customization, consulting, and optimization services. Keysight Technologies, Inc. sells its products through direct sales force, distributors, resellers, and manufacturer's representatives. The company was incorporated in 2013 and is headquartered in Santa Rosa, California.

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