Reviewing Keysight Technologies (KEYS) & EXFO (EXFO)

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

Earnings & Valuation

This table compares Keysight Technologies and EXFO’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Keysight Technologies $2.95 billion 2.51 $611.00 million $1.33 30.07
EXFO $243.18 million 0.92 $17.91 million $0.04 102.53

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

Institutional & Insider Ownership

88.1% of Keysight Technologies shares are owned by institutional investors. Comparatively, 17.0% of EXFO shares are owned by institutional investors. 1.2% of Keysight Technologies shares are owned by company insiders. Comparatively, 20.0% of EXFO shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Risk and Volatility

Keysight Technologies has a beta of 1.15, meaning that its stock price is 15% more volatile than the S&P 500. Comparatively, EXFO has a beta of 0.52, meaning that its stock price is 48% less volatile than the S&P 500.

Profitability

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

Net Margins Return on Equity Return on Assets
Keysight Technologies 7.58% 20.85% 8.06%
EXFO 0.93% 3.25% 2.47%

Analyst Recommendations

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

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Keysight Technologies 0 2 8 0 2.80
EXFO 0 4 1 0 2.20

Keysight Technologies presently has a consensus price target of $47.11, suggesting a potential upside of 17.81%. EXFO has a consensus price target of $5.70, suggesting a potential upside of 39.02%. Given EXFO’s higher possible upside, analysts clearly believe EXFO is more favorable than Keysight Technologies.

Summary

Keysight Technologies beats EXFO on 11 of the 14 factors compared between the two stocks.

About Keysight Technologies

Keysight Technologies, Inc. is a measurement company engaged in providing electronic design and test solutions to communications and electronics industries. The Company provides electronic design and test instruments and systems and related software, software design tools and related services that are used in the design, development, manufacture, installation, deployment and operation of electronics equipment. The Company operates through three segments: Communications Solutions Group (CSG), Electronic Industrial Solutions Group (EISG) and Services Solutions Group (SSG). The CSG and EISG segments provide electronic design and test software, instruments, and systems used in the simulation, design, validation, manufacturing, installation and optimization of electronic equipment. The SSG segment provides integrated service solutions, including repair and calibration services, professional services and remanufactured equipment.

About EXFO

EXFO Inc is a Canada-based company, which provides communications service providers (CSPs) and data center, cloud and Web-scale operators with field test, service assurance and analytics solutions to ensure the deployment, maintenance and management of physical, virtual, fixed and mobile networks. It focuses on network infrastructures: fourth generation (4G)/long-term evolution (LTE), wireless backhaul, small cells and distributed antenna systems (DAS), 100G network upgrades and fiber-to-the-home (FTTH)/fiber-to-the-curb (FTTC)/fiber-to-the-node (FTTN) deployments. It offers a range of wire line and wireless tests, service assurance and analytics solutions to the global telecommunications industry. Its products include TestFlow; LTB-8 platform; a family of optical time domain reflect meters (OTDRs); iSAM; MaxTester-940 Fiber Certifier optical loss test set (OLTS) for data center and enterprise markets, and the G.fast handheld test set.

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