Head to Head Analysis: MTS Systems Corporation (MTSC) vs. Anixter International (AXE)

MTS Systems Corporation (NASDAQ: MTSC) and Anixter International (NYSE:AXE) are both computer and technology companies, but which is the superior investment? We will compare the two businesses based on the strength of their dividends, risk, analyst recommendations, earnings, valuation, profitability and institutional ownership.

Earnings & Valuation

This table compares MTS Systems Corporation and Anixter International’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
MTS Systems Corporation $801.32 million 1.07 $113.92 million $1.31 38.74
Anixter International $7.75 billion 0.34 $382.00 million $4.39 18.04

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.

Insider and Institutional Ownership

85.5% of Anixter International shares are held by institutional investors. 1.5% of MTS Systems Corporation shares are held by company insiders. Comparatively, 14.7% of Anixter International shares are held by company 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.

Risk & Volatility

MTS Systems Corporation has a beta of 1.27, suggesting that its stock price is 27% more volatile than the S&P 500. Comparatively, Anixter International has a beta of 1.98, suggesting that its stock price is 98% more volatile than the S&P 500.

Dividends

MTS Systems Corporation pays an annual dividend of $1.20 per share and has a dividend yield of 2.4%. 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.

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for MTS Systems Corporation and Anixter International, 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 0 4 1 0 2.20

MTS Systems Corporation currently has a consensus target price of $58.00, suggesting a potential upside of 14.29%. Anixter International has a consensus target price of $86.00, suggesting a potential upside of 8.59%. Given MTS Systems Corporation’s stronger consensus rating and higher possible upside, equities research analysts clearly believe MTS Systems Corporation is more favorable than Anixter International.

Profitability

This table compares MTS Systems Corporation and Anixter International’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%
Anixter International 1.91% 13.09% 4.22%

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.

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.

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