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

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

Analyst Ratings

This is a summary of recent ratings for Vishay Intertechnology and Knowles, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Vishay Intertechnology	1	3	3	1	2.50
Knowles	0	2	2	1	2.80

Vishay Intertechnology presently has a consensus price target of $35.00, indicating a potential upside of 9.86%. Knowles has a consensus price target of $40.67, indicating a potential upside of 14.75%. Given Knowles’ stronger consensus rating and higher probable upside, analysts clearly believe Knowles is more favorable than Vishay Intertechnology.

Valuation & Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Vishay Intertechnology	$3.07 billion	1.59	-$8.98 million	$0.19	167.68
Knowles	$593.20 million	5.10	$44.20 million	$0.77	46.03

Knowles has lower revenue, but higher earnings 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.

Profitability

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

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

Insider & Institutional Ownership

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

Volatility & Risk

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

Summary

Knowles beats Vishay Intertechnology on 9 of the 14 factors compared between the two stocks.

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.

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.