Keysight Technologies (NYSE:KEYS) versus Advantest (OTCMKTS:ATEYY) Financial Contrast

Keysight Technologies (NYSE:KEYS) and Advantest (OTCMKTS:ATEYY) are both large-cap technology companies, but which is the better stock? We will compare the two companies based on the strength of their valuation, earnings, institutional ownership, profitability, dividends, risk and analyst recommendations.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Keysight Technologies	19.08%	24.34%	13.10%
Advantest	39.57%	67.22%	45.56%

Valuation & Earnings

This table compares Keysight Technologies and Advantest”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Keysight Technologies	$5.38 billion	8.24	$850.00 million	$7.28	35.76
Advantest	$7.50 billion	16.12	$2.48 billion	$4.99	33.08

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

Insider and Institutional Ownership

84.6% of Keysight Technologies shares are owned by institutional investors. Comparatively, 0.0% of Advantest shares are owned by institutional investors. 0.4% of Keysight Technologies shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Volatility and Risk

Keysight Technologies has a beta of 1.19, indicating that its share price is 19% more volatile than the S&P 500. Comparatively, Advantest has a beta of 2.32, indicating that its share price is 132% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Keysight Technologies and Advantest, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Keysight Technologies	0	3	11	0	2.79
Advantest	0	0	0	2	4.00

Keysight Technologies presently has a consensus price target of $401.42, indicating a potential upside of 54.21%. Given Keysight Technologies’ higher probable upside, analysts plainly believe Keysight Technologies is more favorable than Advantest.

Summary

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

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.

About Advantest

Advantest Corporation manufactures and sells semiconductors, component test system products, and mechatronics related products in Japan, the Americas, Europe, and Asia. The company operates through three segments: Semiconductor and Component Test System; Mechatronics Related Business; and Services, Support and Others. The Semiconductor and Component Test System segment provides customers with test system products for the semiconductor industry and the electronic parts industry, as well as offers test systems for SoC semiconductor devices, and test systems for memory semiconductors devices. The Mechatronics Related Business segment provides test handlers; mechatronic-applied products for handling semiconductor devices; and device interfaces, which serve as interfaces with the devices that are measured, as well as nano-technology related products. The Services, Support and Others segment provides test solutions of system level testing customer solutions for the semiconductor and modules, and support services. This segment is also involved in the sale of consumables and used products, and equipment lease and other businesses. It also engages in the research and development activities and provides maintenance and support services. The company was incorporated in 1946 and is headquartered in Tokyo, Japan.