Head-To-Head Contrast: Vicor (NASDAQ:VICR) & nVent Electric (NYSE:NVT)

Vicor (NASDAQ:VICR) and nVent Electric (NYSE:NVT) are both large-cap computer and technology companies, but which is the superior business? We will contrast the two companies based on the strength of their dividends, valuation, profitability, institutional ownership, earnings, risk and analyst recommendations.

Risk and Volatility

Vicor has a beta of 2.36, meaning that its share price is 136% more volatile than the S&P 500. Comparatively, nVent Electric has a beta of 1.35, meaning that its share price is 35% more volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Vicor	28.98%	20.21%	18.26%
nVent Electric	11.37%	16.82%	9.03%

Institutional & Insider Ownership

47.5% of Vicor shares are owned by institutional investors. Comparatively, 90.1% of nVent Electric shares are owned by institutional investors. 31.3% of Vicor shares are owned by insiders. Comparatively, 1.7% of nVent Electric shares are owned 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.

Valuation & Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Vicor	$452.70 million	27.29	$118.56 million	$2.99	90.65
nVent Electric	$3.89 billion	6.76	$710.20 million	$3.01	54.08

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

Analyst Ratings

This is a summary of recent recommendations and price targets for Vicor and nVent Electric, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Vicor	0	1	3	1	3.00
nVent Electric	0	1	11	1	3.00

Vicor currently has a consensus target price of $228.33, suggesting a potential downside of 15.76%. nVent Electric has a consensus target price of $184.20, suggesting a potential upside of 13.15%. Given nVent Electric’s higher possible upside, analysts clearly believe nVent Electric is more favorable than Vicor.

Summary

Vicor beats nVent Electric on 7 of the 13 factors compared between the two stocks.

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.

About nVent Electric

nVent Electric plc, together with its subsidiaries, designs, manufactures, markets, installs, and services electrical connection and protection solutions in North America, Europe, the Middle East, Africa, the Asia Pacific, and internationally. The company operates through three segments: Enclosures, Electrical & Fastening Solutions, and Thermal Management. The Enclosures segment provides solutions to protect electronics and data in mission critical applications, including data solutions. This segment also offers digital and automation solutions, system integrations, and global services. The Electrical & Fastening Solutions segment provides solutions that connect and protect power and data infrastructure. This segment also offers power connections, fastening solutions, cable management solutions, grounding and bonding systems, and tools and test instruments. The Thermal Management segment offers heat management solutions that protect people and assets. This segment includes heat tracing for freeze protection and process temperature maintenance and control; pipe freeze protection, surface deicing, hot water temperature maintenance, floor heating, fire-rated wiring, and leak detection; and heat trace systems, connected controls, remote monitoring, and annual service programs. The company markets its products through electrical distributors, contractors, and original equipment manufacturers under the CADDY, ERICO, GARDNER BENDER, HOFFMAN, ILSCO, RAYCHEM, SCHROFF, and TRACER brand names. Its products are used for various applications, such as industrial, commercial and residential, infrastructure, and energy. nVent Electric plc was founded in 1903 and is based in London, the United Kingdom.