Critical Contrast: Vishay Intertechnology (NYSE:VSH) vs. Knowles (NYSE:KN)

Knowles (NYSE:KN) and Vishay Intertechnology (NYSE:VSH) are both mid-cap technology companies, but which is the superior business? We will compare the two companies based on the strength of their analyst recommendations, profitability, risk, valuation, earnings, institutional ownership and dividends.

Profitability

This table compares Knowles and Vishay Intertechnology’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Knowles	10.63%	11.45%	8.33%
Vishay Intertechnology	0.86%	1.84%	0.94%

Risk and Volatility

Knowles has a beta of 1.59, suggesting that its stock price is 59% more volatile than the S&P 500. Comparatively, Vishay Intertechnology has a beta of 1.8, suggesting that its stock price is 80% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current ratings and price targets for Knowles and Vishay Intertechnology, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Knowles	0	2	2	1	2.80
Vishay Intertechnology	1	3	2	1	2.43

Knowles currently has a consensus target price of $40.67, suggesting a potential upside of 18.01%. Vishay Intertechnology has a consensus target price of $33.25, suggesting a potential upside of 8.53%. Given Knowles’ stronger consensus rating and higher possible upside, analysts clearly believe Knowles is more favorable than Vishay Intertechnology.

Earnings & Valuation

This table compares Knowles and Vishay Intertechnology”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Knowles	$593.20 million	4.96	$44.20 million	$0.77	44.75
Vishay Intertechnology	$3.32 billion	1.42	-$8.98 million	$0.19	161.25

Knowles has higher earnings, but lower revenue than Vishay Intertechnology. Knowles is trading at a lower price-to-earnings ratio than Vishay Intertechnology, indicating that it is currently the more affordable of the two stocks.

Insider & Institutional Ownership

96.3% of Knowles shares are owned by institutional investors. Comparatively, 93.7% of Vishay Intertechnology shares are owned by institutional investors. 2.2% of Knowles shares are owned by company insiders. Comparatively, 8.3% of Vishay Intertechnology shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Summary

Knowles beats Vishay Intertechnology on 9 of the 13 factors compared between the two stocks.

About Knowles

Knowles Corporation offers capacitors, radio frequency (RF) filtering products, balanced armature speakers, micro-acoustic microphones, and audio solutions in Asia, the United States, Europe, other Americas, and internationally. It operates through three segments: Precision Devices (PD); Medtech & Specialty Audio (MSA); and Consumer MEMS Microphones (CMM). The PD segment designs and delivers film, electrolytic, and mica capacitor products for use in power supplies and medical implants; electromagnetic interference filters; and RF filtering solutions for use in satellite communications and radar systems for defense applications. The MSA segment designs and manufactures balanced armature speakers and microphones for the hearing health, audio, and True Wireless Stereo (TWS) markets. The CMM segment designs and manufactures micro-electro-mechanical systems (MEMS) microphones and audio solutions used in applications that serve the ear, mobile, TWS, Internet of Things, computing, and smartphones markets. The company serves the defense, medtech, electric vehicle, industrial, communications, and consumer electronics markets through original equipment manufacturers, their contract manufacturers, suppliers, sales representatives, and distributors. Knowles Corporation was founded in 1946 and is headquartered in Itasca, Illinois.

About Vishay Intertechnology

Vishay Intertechnology, Inc. manufactures and sells discrete semiconductors and passive electronic components in Asia, Europe, and the Americas. The company operates through Metal Oxide Semiconductor Field Effect Transistors (MOSFETs), Diodes, Optoelectronic Components, Resistors, Inductors, and Capacitors segments. The MOSFETs segment offers low- and medium-voltage TrenchFET MOSFETs, high-voltage planar MOSFETs, high voltage Super Junction MOSFETs, power integrated circuits, and integrated function power devices. The Diodes segment provides rectifiers, small signal diodes, protection diodes, thyristors/silicon-controlled rectifiers, and power modules. The Optoelectronic Components segment contains standard and customer specific optoelectronic components, such as infrared (IR) emitters and detectors, IR remote control receivers, optocouplers, solid-state relays, optical sensors, light-emitting diodes, 7-segment displays, and IR data transceiver modules. The Resistors segment offers resistors, which are basic components used in various forms of electronic circuitry to adjust and regulate levels of voltage and current. The Inductors segment provides inductors for use as an internal magnetic field to change alternating current phase and resist alternating current. The Capacitors segment offers capacitors, which store energy and discharge it when needed. It sells its products under Siliconix, Dale, Draloric, Beyschlag, Sfernice, MCB, UltraSource, Applied Thin-Film Products, IHLP, HiRel Systems, Sprague, Vitramon, Barry, Roederstein, ESTA, and BCcomponents brand names. The company serves industrial, automotive, telecommunications, computing, consumer products, power supplies, military and aerospace, and medical end markets. Vishay Intertechnology, Inc. was incorporated in 1962 and is headquartered in Malvern, Pennsylvania.