Analyzing indie Semiconductor (NASDAQ:INDI) and MKS (NASDAQ:MKSI)

indie Semiconductor (NASDAQ:INDI) and MKS (NASDAQ:MKSI) are both technology companies, but which is the better stock? We will compare the two companies based on the strength of their valuation, analyst recommendations, institutional ownership, dividends, profitability, earnings and risk.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
indie Semiconductor	-65.18%	-32.02%	-13.61%
MKS	10.15%	24.72%	7.80%

Volatility and Risk

indie Semiconductor has a beta of 2.79, indicating that its share price is 179% more volatile than the S&P 500. Comparatively, MKS has a beta of 1.98, indicating that its share price is 98% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of current ratings and recommmendations for indie Semiconductor and MKS, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
indie Semiconductor	1	2	1	0	2.00
MKS	1	2	12	1	2.81

indie Semiconductor currently has a consensus target price of $4.75, suggesting a potential upside of 25.66%. MKS has a consensus target price of $382.86, suggesting a potential upside of 49.69%. Given MKS’s stronger consensus rating and higher possible upside, analysts clearly believe MKS is more favorable than indie Semiconductor.

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
indie Semiconductor	$217.39 million	4.03	-$143.07 million	($0.73)	-5.18
MKS	$3.93 billion	4.40	$295.00 million	$6.27	40.79

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

Institutional and Insider Ownership

67.7% of indie Semiconductor shares are held by institutional investors. Comparatively, 99.8% of MKS shares are held by institutional investors. 2.6% of indie Semiconductor shares are held by company insiders. Comparatively, 0.6% of MKS shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Summary

MKS beats indie Semiconductor on 13 of the 15 factors compared between the two stocks.

About indie Semiconductor

indie Semiconductor, Inc. provides automotive semiconductors and software solutions for advanced driver assistance systems, autonomous vehicle, in-cabin, connected car, and electrification applications in the United States, South America, rest of North America, Greater China, South Korea, rest of the Asia Pacific, and Europe. It offers ultrasonic sensors for parking assist and systems; radar sensors for audio assistance and reverse information; front cameras for vehicle detection, collision avoidance, and sign reading; and side/inside cameras for blind spot and lane change assist, and driver behavior monitoring. The company also provides LiDAR for distance, speed, and obstacle detection, collision avoidance, and emergency brake system; and long range RADAR for audio assistance, obstacle detection, and ACC stop and go. In addition, it designs and manufactures photonic components on various technology platforms, including fiber Bragg gratings, low-noise lasers, athermal and tunable packaging, photonic integration, and low-noise and high-speed electronics. The company was founded in 2007 and is headquartered in Aliso Viejo, 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.