Comparing Vishay Intertechnology (NYSE:VSH) and Infineon Technologies (OTCMKTS:IFNNY)

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

Volatility & Risk

Infineon Technologies has a beta of 2.23, indicating that its stock price is 123% more volatile than the S&P 500. Comparatively, Vishay Intertechnology has a beta of 1.8, indicating that its stock price is 80% more volatile than the S&P 500.

Analyst Recommendations

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Infineon Technologies	0	2	1	1	2.75
Vishay Intertechnology	1	3	4	1	2.56

Vishay Intertechnology has a consensus target price of $36.17, suggesting a potential upside of 12.87%. Given Vishay Intertechnology’s higher possible upside, analysts clearly believe Vishay Intertechnology is more favorable than Infineon Technologies.

Dividends

Infineon Technologies pays an annual dividend of $0.28 per share and has a dividend yield of 0.4%. Vishay Intertechnology pays an annual dividend of $0.40 per share and has a dividend yield of 1.2%. Infineon Technologies pays out 24.8% of its earnings in the form of a dividend. Vishay Intertechnology pays out 210.5% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Infineon Technologies	8.37%	11.39%	6.39%
Vishay Intertechnology	0.86%	1.84%	0.94%

Institutional & Insider Ownership

0.2% of Infineon Technologies shares are held by institutional investors. Comparatively, 93.7% of Vishay Intertechnology shares are held by institutional investors. 8.3% of Vishay Intertechnology shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Earnings and Valuation

This table compares Infineon Technologies and Vishay Intertechnology”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Infineon Technologies	$16.21 billion	5.02	$1.12 billion	$1.13	55.32
Vishay Intertechnology	$3.07 billion	1.60	-$8.98 million	$0.19	168.65

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

Summary

Infineon Technologies beats Vishay Intertechnology on 10 of the 16 factors compared between the two stocks.

About Infineon Technologies

Infineon Technologies AG designs, develops, manufactures, and markets semiconductors and semiconductor-based solutions worldwide. Its Automotive segment offers automotive microcontrollers; 3D ToF, magnetic, and pressure sensors; discrete power semiconductors; IGBT modules; industrial microcontrollers; power and memory ICs; transceivers; diodes, MOSEFTs, and modules; and voltage regulators for use in assistance and safety systems, comfort electronics, infotainment, powertrain, and security products. The company’s Green Industrial Power segment provides bare dies, discrete IGBTs, and driver ICs; SiC diodes, MOSFETs, and modules; and IGBT modules for home appliances, industrial drives, industrial power supplies, industrial robotics, industrial vehicles, and traction, as well as for energy generation, storage, and transmission. Its Power & Sensor Systems segment offers chips for gas and pressure sensors, and MEMS microphones; 3D ToF sensors; control ICs; discrete low-, mid-, and high-voltage power MOSFET; customized chips; GaN power switches; GPS low-noise amplifiers; low-voltage and high-voltage driver ICs; radar sensor ICs; RF antenna switches and power transistors; transient voltage suppressor diodes; SiC diode and MOSFETs; and USB controllers for use in audio amplifiers, automotive electronics, BLDC motors, cellular communications infrastructure, electric vehicle charging stations, human machine interaction, IoT, LED and conventional lighting systems, microinverter, mobile devices, power management, and special applications. The company’s Connected Secure Systems segment provides connectivity solutions, embedded security controllers, microcontrollers, and security controllers for authentication, automotive, consumer electronics, government identification document, IoT, mobile communication, payment system, ticketing, access control, and computing applications. Infineon Technologies AG was founded in 1999 and is headquartered in Neubiberg, Germany.

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.