Critical Contrast: Camtek (NASDAQ:CAMT) and Keysight Technologies (NYSE:KEYS)

Camtek (NASDAQ:CAMT) and Keysight Technologies (NYSE:KEYS) are both computer and technology companies, but which is the superior business? We will compare the two companies based on the strength of their profitability, dividends, risk, analyst recommendations, institutional ownership, valuation and earnings.

Insider and Institutional Ownership

41.9% of Camtek shares are owned by institutional investors. Comparatively, 84.6% of Keysight Technologies shares are owned by institutional investors. 79.4% of Camtek shares are owned by insiders. Comparatively, 0.6% of Keysight Technologies shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Profitability

This table compares Camtek and Keysight Technologies’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Camtek	28.40%	24.57%	15.09%
Keysight Technologies	14.50%	19.65%	10.71%

Valuation & Earnings

This table compares Camtek and Keysight Technologies”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Camtek	$429.23 million	9.34	$118.51 million	$2.61	33.70
Keysight Technologies	$4.98 billion	5.65	$614.00 million	$4.26	38.38

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

Risk & Volatility

Camtek has a beta of 1.34, suggesting that its stock price is 34% more volatile than the S&P 500. Comparatively, Keysight Technologies has a beta of 1.09, suggesting that its stock price is 9% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current recommendations and price targets for Camtek and Keysight Technologies, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Camtek	0	1	9	1	3.00
Keysight Technologies	1	0	8	0	2.78

Camtek currently has a consensus price target of $89.00, suggesting a potential upside of 1.19%. Keysight Technologies has a consensus price target of $183.00, suggesting a potential upside of 11.93%. Given Keysight Technologies’ higher probable upside, analysts clearly believe Keysight Technologies is more favorable than Camtek.

Summary

Camtek beats Keysight Technologies on 9 of the 15 factors compared between the two stocks.

About Camtek

Camtek Ltd., together with its subsidiaries, develops, manufactures, and sells inspection and metrology equipment for semiconductor industry. The company provides Eagle-i, a system that delivers 2D inspection and metrology capabilities; Eagle-AP, which addresses the advanced packaging market using software and hardware technologies that deliver superior 2D and 3D inspection and metrology capabilities on the same platform; and Golden Eagle, a panel inspection and metrology system to address the challenges fanout wafer level packaging applications. It also develops automatic defect classification, which provides automatic defect classification of color images utilizing deep learning techniques to reduce and eliminate manual verification. In addition, the company offers MicroProf AP, a wafer metrology tool for applications at 3D packaging process steps; MicroProf DI, an optical inspection tool that enables inspection of structured and unstructured wafers for manufacturing process; MicroProf FE, a 2D/3D wafer metrology tool that serve front end HVM fab; MicroProf FS, an wafer metrology tool configurable for wafer foundry; MicroProf PT for hybrid metrology applications to common panel sizes; MicroProf MHU metrology tool, a material handling unit for semiconductor, MEMS, sapphire, and LED industries; MicroProf TL, an optical surface measurement tool for fully automatic 3D surface measurements; MicroProf 100, a universal surface metrology tool for determination of topography and film and sample thickness; MicroProf 200, a measuring device for contactless and non-destructive characterization of surfaces and films; and MicroProf 300, a SurfaceSens technology for quality assurance, development, and manufacturing. It serves semiconductor manufacturers, outsourced semiconductor assembly and test, integrated device manufacturers, and wafer level packaging subcontractors. Camtek Ltd. was incorporated in 1987 and is headquartered in Migdal Haemek, Israel.

About Keysight Technologies

Keysight Technologies, Inc. provides electronic design and test solutions to commercial communications, networking, aerospace, defense and government, automotive, energy, semiconductor, electronic, and education industries in the Americas, Europe, and the Asia Pacific. The company operates in two segments, Communications Solutions Group and Electronic Industrial Solutions Group. It offers electronic design automation (EDA) software; instrument measurement software, instrument workflow software, and software testing; digital multimeter, phase noise measurement, power meters and power sensors, counters, LCR meters and impedance measurement products, and electrometers; and spectrum analyzers, network analyzers, logic analyzers, protocol analyzers and exercisers, bit error ratio testers, noise figure analyzers, AC and DC power analyzers, materials test equipment, device current waveform analyzers, and curve tracers. The company also provides waveform and function generators, arbitrary waveform generators, DC power supplies, and DC electronic loads; wireless drive test, radio access and core network test, wireless analyzers, wireless network emulators, and over-the-air test; application and threat intelligence, cloud test, cyber training simulator, network test hardware, synthetic traffic generators, protocol and load test, network security test, and network modeling; bypass switches, clock synchronization, cloud visibility, network and application monitoring, network packet brokers, and network taps; and application-specific test systems, photonic test and measurement products, and MMIC millimeter-wave and microwave devices. In addition, it offers product support, technical support, installation, training, engineering, and integration services. The company sells its products through direct sales force, distributors, resellers, and manufacturer's representatives. Keysight Technologies, Inc. was founded in 1939 and is headquartered in Santa Rosa, California.