Critical Analysis: Vishay Precision Group (NYSE:VPG) and Electro-Sensors (NASDAQ:ELSE)

Vishay Precision Group (NYSE:VPG) and Electro-Sensors (NASDAQ:ELSE) are both small-cap technology companies, but which is the better investment? We will contrast the two companies based on the strength of their risk, dividends, profitability, valuation, institutional ownership, analyst recommendations and earnings.

Volatility and Risk

Vishay Precision Group has a beta of 1.39, meaning that its stock price is 39% more volatile than the S&P 500. Comparatively, Electro-Sensors has a beta of 0.63, meaning that its stock price is 37% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current ratings for Vishay Precision Group and Electro-Sensors, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Vishay Precision Group	2	0	2	0	2.00
Electro-Sensors	0	1	0	0	2.00

Vishay Precision Group currently has a consensus target price of $82.33, suggesting a potential upside of 51.54%. Given Vishay Precision Group’s higher probable upside, equities research analysts clearly believe Vishay Precision Group is more favorable than Electro-Sensors.

Insider & Institutional Ownership

87.6% of Vishay Precision Group shares are owned by institutional investors. Comparatively, 11.7% of Electro-Sensors shares are owned by institutional investors. 7.6% of Vishay Precision Group shares are owned by insiders. Comparatively, 13.3% of Electro-Sensors shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Profitability

This table compares Vishay Precision Group and Electro-Sensors’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Vishay Precision Group	1.20%	1.77%	1.31%
Electro-Sensors	2.42%	1.73%	1.62%

Earnings & Valuation

This table compares Vishay Precision Group and Electro-Sensors”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Vishay Precision Group	$328.59 million	2.20	$5.29 million	$0.30	181.10
Electro-Sensors	$10.48 million	2.61	$310,000.00	$0.08	96.75

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

Summary

Vishay Precision Group beats Electro-Sensors on 9 of the 13 factors compared between the two stocks.

About Vishay Precision Group

Vishay Precision Group, Inc. designs, manufactures, and markets specialized sensors, weighing solutions, and measurement systems in the United States, Israel, the United Kingdom, rest of Europe, Asia, and Canada. It operates through three segments: Sensors, Weighing Solutions, and Measurement Systems. Its product portfolio includes precision resistors, strain gages, load cells and force measurement transducers, on-board weighing systems, and process weighing products; rolling force measuring load cell systems and pressure transmitters; web tension measurement load cells and systems; and optical strip width gages; and laser velocimeters for speed and length measurements and closed-loop crop optimization control systems for optimal strip cuts. The company also offers data acquisition systems and sensors for product safety testing; thermal-mechanical simulation systems for metallurgical research; and conditioning, data acquisition and control systems, as well as electronic displays, signal processors, microelectromechanical system sensors, cabling, system software, and communications software/hardware. Its products are used in industrial comprising waste management, bulk hauling, logging, scales manufacturing, engineering systems, pharmaceutical, oil, chemical, steel, paper, and food industries, as well as test and measurement, steel, medical, construction, agricultural, and consumer markets. The company offers its products under the Alpha Electronics, Powertron, Vishay Foil Resistors, Micro-Measurements, APR, Celtron, Revere, Sensortronics, Tedea-Huntleigh, Stress-tek, Vulcan, BLH Nobel, KELK, and DTS brands. Vishay Precision Group, Inc. was incorporated in 2009 and is headquartered in Malvern, Pennsylvania.

About Electro-Sensors

Electro-Sensors, Inc. engages in the manufacture and selling of industrial production monitoring and process control systems. Its products include shaft speed witches; wireless hazard monitoring; temperature sensor; slide gate and angle position; bearing sensors and belt alignment; and motor drive control. The company was founded by James P. Slattery in 1965 and is headquartered in Minnetonka, MN.