Contrasting Vicor (NASDAQ:VICR) & TDK (OTCMKTS:TTDKY)

TDK (OTCMKTS:TTDKY) and Vicor (NASDAQ:VICR) are both computer and technology companies, but which is the better investment? We will compare the two businesses based on the strength of their risk, dividends, profitability, earnings, analyst recommendations, institutional ownership and valuation.

Valuation and Earnings

This table compares TDK and Vicor”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
TDK	$14.48 billion	1.70	$1.10 billion	$0.61	20.77
Vicor	$359.06 million	21.33	$6.13 million	$1.83	93.73

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

Profitability

This table compares TDK and Vicor’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
TDK	7.55%	9.32%	4.65%
Vicor	18.63%	13.77%	12.14%

Analyst Recommendations

This is a summary of recent ratings and price targets for TDK and Vicor, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
TDK	0	0	0	0	0.00
Vicor	0	2	3	0	2.60

Vicor has a consensus target price of $118.33, suggesting a potential downside of 31.01%. Given Vicor’s stronger consensus rating and higher probable upside, analysts plainly believe Vicor is more favorable than TDK.

Insider & Institutional Ownership

47.5% of Vicor shares are owned by institutional investors. 0.0% of TDK shares are owned by company insiders. Comparatively, 31.3% of Vicor shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Risk & Volatility

TDK has a beta of 0.77, meaning that its share price is 23% less volatile than the S&P 500. Comparatively, Vicor has a beta of 1.9, meaning that its share price is 90% more volatile than the S&P 500.

Summary

Vicor beats TDK on 12 of the 14 factors compared between the two stocks.

About TDK

TDK Corporation, together with its subsidiaries, engages in manufacture and sale of electronic components in Japan, Europe, China, Asia, the Americas, and internationally. The company operates through Passive Components, Sensor Application Products, Magnetic Application Products, Energy Application Products, and Other segments. The Passive Components segment offers ceramic capacitors, aluminum electrolytic capacitors, film capacitors, high-frequency components, piezoelectric materials, and circuit protection components, as well as inductive devices, including ferrite cores, coils, and transformers. The Sensor Application Products segment provides temperature and pressure, magnetic, and MEMS sensors. The Magnetic Application Products segment offers hard disk drives (HDD) heads, HDD suspension assemblies, and magnets. The Energy Application Products segment provides energy devices comprising rechargeable batteries, and power supplies. The Other segment provides mechatronics production equipment and camera module micro actuators for smartphones and other products. The company also engages in engages in insurance and real estate agency businesses. The company was formerly known as Tokyo Denki Kagaku Kogyo K.K. and changed its name to TDK Corporation in 1983. TDK Corporation was founded in 1935 and is headquartered in Tokyo, Japan.

About Vicor

Vicor Corporation, together with its subsidiaries, designs, develops, manufactures, and markets modular power components and power systems for converting electrical power in the United States, Europe, the Asia Pacific, and internationally. The company offers a range of brick-format DC-DC converters; complementary components provide AC line rectification, input filtering, power factor correction, and transient protection; and input and output voltage, and output power products, as well as electrical and mechanical accessories. It also design, sells, and service custom power systems solutions. The company serves independent manufacturers of electronic devices, original equipment manufacturers, and their contract manufacturers in the aerospace and aviation, defense electronics, satellites, factory automation, instrumentation, test equipment, transportation, telecommunications and networking infrastructure and vehicles, and transportation markets. Vicor Corporation was incorporated in 1981 and is headquartered in Andover, Massachusetts.