Critical Analysis: Cemtrex (NASDAQ:CETX) and Vicor (NASDAQ:VICR)

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

Analyst Ratings

This is a breakdown of recent ratings and price targets for Cemtrex and Vicor, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Cemtrex	1	0	0	0	1.00
Vicor	0	1	3	1	3.00

Vicor has a consensus target price of $118.33, indicating a potential downside of 45.73%. Given Vicor’s stronger consensus rating and higher probable upside, analysts clearly believe Vicor is more favorable than Cemtrex.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Cemtrex	-25.25%	-127.57%	-30.65%
Vicor	26.19%	18.73%	16.61%

Valuation and Earnings

This table compares Cemtrex and Vicor”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Cemtrex	$78.88 million	0.16	-$28.11 million	$61.65	0.02
Vicor	$452.70 million	21.85	$118.56 million	$2.61	83.54

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

Institutional & Insider Ownership

2.0% of Cemtrex shares are held by institutional investors. Comparatively, 47.5% of Vicor shares are held by institutional investors. 31.3% of Vicor shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Volatility and Risk

Cemtrex has a beta of 1.44, suggesting that its stock price is 44% more volatile than the S&P 500. Comparatively, Vicor has a beta of 1.97, suggesting that its stock price is 97% more volatile than the S&P 500.

Summary

Vicor beats Cemtrex on 14 of the 15 factors compared between the two stocks.

About Cemtrex

Cemtrex, Inc. engages in the provision of solutions in the technology industry. It operates through the following segments: Security, Industrial Services, and Cemtrex Corporate. The Security segment provides end-to-end security solutions to meet corporate, industrial, and governmental security challenges. The Industrial Services segment offers single-source expertise and services for rigging, millwrighting, in plant maintenance, equipment erection, relocation, and disassembly to diversified customers. The Cemtrex Corporate segment refers to the holding company of the other two segments. The company was founded on April 27, 1998 and is headquartered in Hauppauge, NY.

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.