Vishay Precision Group (VPG) versus Cognex Corporation (CGNX) Critical Contrast

Vishay Precision Group (NYSE: VPG) and Cognex Corporation (NASDAQ:CGNX) are both computer and technology companies, but which is the superior investment? We will contrast the two companies based on the strength of their risk, earnings, analyst recommendations, dividends, valuation, profitability and institutional ownership.

Analyst Recommendations

This is a breakdown of current recommendations for Vishay Precision Group and Cognex Corporation, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Vishay Precision Group 0 0 1 0 3.00
Cognex Corporation 0 5 5 0 2.50

Vishay Precision Group presently has a consensus price target of $23.00, indicating a potential upside of 5.50%. Cognex Corporation has a consensus price target of $77.71, indicating a potential downside of 30.35%. Given Vishay Precision Group’s stronger consensus rating and higher probable upside, analysts plainly believe Vishay Precision Group is more favorable than Cognex Corporation.

Profitability

This table compares Vishay Precision Group and Cognex Corporation’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Vishay Precision Group 4.16% 7.25% 4.63%
Cognex Corporation 33.10% 19.51% 17.95%

Earnings & Valuation

This table compares Vishay Precision Group and Cognex Corporation’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Vishay Precision Group $232.41 million 1.25 $31.01 million $0.72 30.28
Cognex Corporation $585.12 million 16.51 $207.39 million $2.18 51.18

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

Dividends

Cognex Corporation pays an annual dividend of $0.34 per share and has a dividend yield of 0.3%. Vishay Precision Group does not pay a dividend. Cognex Corporation pays out 15.6% of its earnings in the form of a dividend.

Institutional & Insider Ownership

86.5% of Vishay Precision Group shares are owned by institutional investors. Comparatively, 87.3% of Cognex Corporation shares are owned by institutional investors. 6.4% of Vishay Precision Group shares are owned by company insiders. Comparatively, 5.6% of Cognex Corporation shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Risk and Volatility

Vishay Precision Group has a beta of 0.91, suggesting that its share price is 9% less volatile than the S&P 500. Comparatively, Cognex Corporation has a beta of 1.4, suggesting that its share price is 40% more volatile than the S&P 500.

Summary

Cognex Corporation beats Vishay Precision Group on 12 of the 16 factors compared between the two stocks.

About Vishay Precision Group

Vishay Precision Group, Inc. (VPG) is a designer, manufacturer and marketer of sensors and sensor-based measurement systems, as well as specialty resistors and strain gages. The Company operates through three business segments: Foil Technology Products, Force Sensors, and Weighing and Control Systems. Its Foil Technology Products segment includes foil resistor and strain gage operating segments. The Foil Technology Products segment’s brands include Alpha Electronics, Micro-Measurements, Powertron and Vishay Foil Resistors. The Force Sensors segment includes load cells and force measurement transducers that are offered as precision sensors for industrial and commercial use. The Weighing and Control Systems segment designs and manufactures systems that consists of load cells and instrumentation for weighing and force control/measurement for a range of uses, including on-board weighing and overload monitor systems. The segment’s brands include BLH Nobel, KELK and VPG Onboard Weighing.

About Cognex Corporation

Cognex Corporation (Cognex) is a provider of machine vision products that capture and analyze visual information in order to automate tasks, primarily in manufacturing processes, where vision is required. The Company operates through the machine vision technology segment. The Company’s machine vision products are used to automate the manufacture and tracking of discrete items, such as mobile phones, aspirin bottles and automobile tires, by locating, identifying, inspecting and measuring them during the manufacturing or distribution process. The Company’s products include vision software, vision systems, vision sensors and identification (ID) products. Its products range from vision sensors that are integrated, to personal computer (PC)-based systems for users. Its products also have a range of physical forms, depending upon the user’s need. Cognex sells its products through a direct sales force, as well as through a global network of integration and distribution partners.

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