Reviewing Mikros Systems (MKRS) & MTS Systems (NASDAQ:MTSC)

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

Dividends

MTS Systems pays an annual dividend of $1.20 per share and has a dividend yield of 2.5%. Mikros Systems does not pay a dividend. MTS Systems pays out 54.1% of its earnings in the form of a dividend. MTS Systems has raised its dividend for 7 consecutive years.

Valuation & Earnings

This table compares Mikros Systems and MTS Systems’ top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Mikros Systems $7.20 million 2.22 $230,000.00 N/A N/A
MTS Systems $787.96 million 1.10 $25.08 million $2.22 21.86

MTS Systems has higher revenue and earnings than Mikros Systems.

Volatility and Risk

Mikros Systems has a beta of 1.1, suggesting that its stock price is 10% more volatile than the S&P 500. Comparatively, MTS Systems has a beta of 1.01, suggesting that its stock price is 1% more volatile than the S&P 500.

Analyst Ratings

This is a summary of recent ratings and recommmendations for Mikros Systems and MTS Systems, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Mikros Systems 0 0 0 0 N/A
MTS Systems 0 0 1 0 3.00

MTS Systems has a consensus price target of $70.00, indicating a potential upside of 44.27%. Given MTS Systems’ higher possible upside, analysts plainly believe MTS Systems is more favorable than Mikros Systems.

Insider & Institutional Ownership

97.7% of MTS Systems shares are owned by institutional investors. 1.8% of MTS Systems shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Profitability

This table compares Mikros Systems and MTS Systems’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Mikros Systems 3.63% 14.55% 9.42%
MTS Systems 7.18% 7.56% 2.99%

Summary

MTS Systems beats Mikros Systems on 9 of the 14 factors compared between the two stocks.

Mikros Systems Company Profile

Mikros Systems Corporation engages in the research and development of electronic systems technology for military and commercial applications in the United States. The company offers Adaptive Diagnostic Electronic Portable Testset, an automated maintenance workstation to reduce the time required to align the AN/SPY1 radar system aboard the U.S. Navy AEGIS cruisers and destroyers; and ADEPT Distance Support Sensor Suite, a network-enabled system, which can be configured to monitor various shipboard systems and report maintenance data onshore for further analysis to detect trends and predict failures. It also provides Diagnostic Profiler, a software that provides diagnostic services to its host application; and Prognostics Framework, an analysis software for framework that implements real-time prognostics, diagnostics, and status monitoring to support embedded prognostic applications, health management systems, and condition-based maintenance applications. The company primarily serves the Department of Defense, the Department of Homeland Security, and other governmental authorities. Mikros Systems Corporation was founded in 1978 and is headquartered in Princeton, New Jersey.

MTS Systems Company Profile

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.

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