Entegris (ENTG) & Brooks Automation (BRKS) Financial Analysis

Entegris (NASDAQ: ENTG) and Brooks Automation (NASDAQ:BRKS) are both mid-cap computer and technology companies, but which is the better stock? We will contrast the two companies based on the strength of their dividends, risk, earnings, analyst recommendations, valuation, institutional ownership and profitability.

Profitability

This table compares Entegris and Brooks Automation’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Entegris 9.63% 17.04% 9.28%
Brooks Automation 8.34% 11.25% 8.96%

Insider & Institutional Ownership

95.1% of Entegris shares are held by institutional investors. Comparatively, 90.4% of Brooks Automation shares are held by institutional investors. 1.7% of Entegris shares are held by company insiders. Comparatively, 2.2% of Brooks Automation shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Entegris and Brooks Automation, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Entegris 0 3 5 1 2.78
Brooks Automation 0 2 4 0 2.67

Entegris presently has a consensus target price of $28.00, indicating a potential upside of 0.54%. Brooks Automation has a consensus target price of $30.17, indicating a potential upside of 3.45%. Given Brooks Automation’s higher probable upside, analysts plainly believe Brooks Automation is more favorable than Entegris.

Dividends

Brooks Automation pays an annual dividend of $0.40 per share and has a dividend yield of 1.4%. Entegris does not pay a dividend. Brooks Automation pays out 50.0% of its earnings in the form of a dividend.

Valuation & Earnings

This table compares Entegris and Brooks Automation’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Entegris $1.25 billion 3.16 $298.17 million $0.84 33.15
Brooks Automation $668.56 million 2.93 $95.89 million $0.80 36.45

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

Risk and Volatility

Entegris has a beta of 1.46, suggesting that its stock price is 46% more volatile than the S&P 500. Comparatively, Brooks Automation has a beta of 1.07, suggesting that its stock price is 7% more volatile than the S&P 500.

Summary

Entegris beats Brooks Automation on 13 of the 17 factors compared between the two stocks.

Entegris Company Profile

Entegris, Inc. is a global developer, manufacturer and supplier of microcontamination control products, specialty chemicals and materials handling solutions for manufacturing processes in the semiconductor and other high-technology industries. The Company operates in three business segments: Specialty Chemicals and Engineered Materials (SCEM), Advanced Materials Handling (AMH) and Microcontamination Control (MC). The SCEM segment provides process chemistries, gases, materials and delivery systems to support semiconductor and other manufacturing processes. The AMH segment develops solutions to monitor, protect, transport, and deliver critical liquid chemistries and substrates for a set of applications in the semiconductor industry and other high-technology industries. AMH offers wafer solutions, chemical containers and fluidics. MC offers solutions to purify critical liquid chemistries and gases used in semiconductor manufacturing processes and other high-technology industries.

Brooks Automation Company Profile

Brooks Automation, Inc. is a provider of automation and cryogenic solutions for various applications and markets. The Company operates through two segments: Brooks Semiconductor Solutions Group and Brooks Life Science Systems. The Brooks Semiconductor Solutions Group segment offers critical automated transport, vacuum and contamination controls solutions and services. Its product offerings include robots and integrated automation systems for handling of substrates. It is also a provider of cryogenic components to create vacuum and thermal stability within critical operating environments in the manufacturing process. It also offers equipment for automated contamination control, conditioning and metrology solutions for wafer and reticle carriers. The Brooks Life Science Systems segment offers sample life cycle management solutions that provide life science and bioscience customers with a range of sample management solutions for scientific research and support drug development.

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