Vishay Intertechnology (NYSE:VSH) and Celestica (NYSE:CLS) Critical Review

Celestica (NYSE:CLS) and Vishay Intertechnology (NYSE:VSH) are both technology companies, but which is the better investment? We will contrast the two companies based on the strength of their valuation, analyst recommendations, dividends, risk, profitability, institutional ownership and earnings.

Valuation & Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Celestica	$12.39 billion	3.07	$832.50 million	$9.62	34.39
Vishay Intertechnology	$3.07 billion	1.52	-$8.98 million	$0.01	3,416.70

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

Risk and Volatility

Celestica has a beta of 2.05, suggesting that its stock price is 105% more volatile than the S&P 500. Comparatively, Vishay Intertechnology has a beta of 1.76, suggesting that its stock price is 76% more volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Celestica	7.16%	39.96%	11.06%
Vishay Intertechnology	0.07%	0.22%	0.11%

Analyst Recommendations

This is a summary of current ratings and recommmendations for Celestica and Vishay Intertechnology, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Celestica	0	2	20	1	2.96
Vishay Intertechnology	1	3	0	1	2.20

Celestica currently has a consensus price target of $437.00, suggesting a potential upside of 32.09%. Vishay Intertechnology has a consensus price target of $24.00, suggesting a potential downside of 29.76%. Given Celestica’s stronger consensus rating and higher possible upside, equities analysts plainly believe Celestica is more favorable than Vishay Intertechnology.

Insider & Institutional Ownership

67.4% of Celestica shares are owned by institutional investors. Comparatively, 93.7% of Vishay Intertechnology shares are owned by institutional investors. 1.1% of Celestica shares are owned by insiders. Comparatively, 8.3% of Vishay Intertechnology shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Summary

Celestica beats Vishay Intertechnology on 11 of the 14 factors compared between the two stocks.

About Celestica

Celestica Inc. provides supply chain solutions in North America, Europe, and Asia. It operates through two segments: Advanced Technology Solutions, and Connectivity & Cloud Solutions. The company offers a range of product manufacturing and related supply chain services, including design and development, new product introduction, engineering services, component sourcing, electronics manufacturing and assembly, testing, complex mechanical assembly, systems integration, precision machining, order fulfillment, logistics, asset management, product licensing, and after-market repair and return services. It also provides hardware platform solutions, which includes development of infrastructure platforms, and hardware and software design solutions and services which is used as-is or customized for specific applications; and management of program including design and supply chain, manufacturing, and after-market support, including IT asset disposition and asset management services. The company offers its products and services to original equipment manufacturers, cloud-based, and other service providers, including hyperscalers, and other companies in aerospace and defense, industrial, HealthTech, capital equipment, and communication and enterprise markets. Celestica Inc. was incorporated in 1994 and is headquartered in Toronto, Canada.

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.