Financial Survey: Vishay Precision Group (VPG) vs. MKS Instruments (MKSI)

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

Volatility & Risk

Vishay Precision Group has a beta of 0.92, suggesting that its stock price is 8% less volatile than the S&P 500. Comparatively, MKS Instruments has a beta of 1.04, suggesting that its stock price is 4% more volatile than the S&P 500.

Profitability

This table compares Vishay Precision Group and MKS Instruments’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Vishay Precision Group 5.35% 7.52% 4.79%
MKS Instruments 16.97% 21.21% 12.66%

Dividends

MKS Instruments pays an annual dividend of $0.72 per share and has a dividend yield of 0.8%. Vishay Precision Group does not pay a dividend. MKS Instruments pays out 12.9% of its earnings in the form of a dividend.

Insider and Institutional Ownership

79.8% of Vishay Precision Group shares are owned by institutional investors. Comparatively, 95.5% of MKS Instruments shares are owned by institutional investors. 6.3% of Vishay Precision Group shares are owned by company insiders. Comparatively, 1.7% of MKS Instruments shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Analyst Ratings

This is a summary of current recommendations for Vishay Precision Group and MKS Instruments, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Vishay Precision Group 0 0 1 0 3.00
MKS Instruments 0 0 4 0 3.00

Vishay Precision Group presently has a consensus target price of $31.00, indicating a potential upside of 17.65%. MKS Instruments has a consensus target price of $109.75, indicating a potential upside of 17.82%. Given MKS Instruments’ higher possible upside, analysts clearly believe MKS Instruments is more favorable than Vishay Precision Group.

Valuation & Earnings

This table compares Vishay Precision Group and MKS Instruments’ top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Vishay Precision Group $224.93 million 1.56 $6.40 million $0.96 27.45
MKS Instruments $1.30 billion 3.90 $104.80 million $5.58 16.69

MKS Instruments has higher revenue and earnings than Vishay Precision Group. MKS Instruments 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

MKS Instruments beats Vishay Precision Group on 12 of the 15 factors compared between the two stocks.

Vishay Precision Group Company Profile

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.

MKS Instruments Company Profile

MKS Instruments, Inc. is a global provider of instruments, subsystems and process control solutions that measures, controls, powers, delivers, monitors and analyzes critical parameters of advanced manufacturing processes. The Company operates through two segments, including the Vacuum & Analysis segment and the Light & Motion segment. The Vacuum & Analysis segment provides a range of instruments, components, subsystems and software, which are derived from its core competencies in pressure measurement and control, flow measurement and control, gas and vapor delivery, gas composition analysis, residual gas analysis, leak detection, control and information technology, ozone generation and delivery, radio frequency (RF) and direct current (DC) power, reactive gas generation and vacuum technology. The Light & Motion segment provides a range of instruments, components and subsystems, which are derived from its core competencies in lasers, photonics and optics.

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