Financial Analysis: Yaskawa Electric (OTCMKTS:YASKY) versus Vishay Intertechnology (NYSE:VSH)

Vishay Intertechnology (NYSE:VSH) and Yaskawa Electric (OTCMKTS:YASKY) are both mid-cap technology companies, but which is the superior business? We will compare the two businesses based on the strength of their earnings, valuation, analyst recommendations, profitability, dividends, institutional ownership and risk.

Volatility and Risk

Vishay Intertechnology has a beta of 1.9, meaning that its stock price is 90% more volatile than the S&P 500. Comparatively, Yaskawa Electric has a beta of 1.63, meaning that its stock price is 63% more volatile than the S&P 500.

Institutional and Insider Ownership

93.7% of Vishay Intertechnology shares are owned by institutional investors. 8.3% of Vishay Intertechnology shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Dividends

Vishay Intertechnology pays an annual dividend of $0.40 per share and has a dividend yield of 1.5%. Yaskawa Electric pays an annual dividend of $0.27 per share and has a dividend yield of 0.6%. Vishay Intertechnology pays out 64.5% of its earnings in the form of a dividend. Yaskawa Electric pays out 15.3% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years.

Valuation and Earnings

This table compares Vishay Intertechnology and Yaskawa Electric”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Vishay Intertechnology	$3.07 billion	1.34	-$8.98 million	$0.62	43.21
Yaskawa Electric	$3.62 billion	1.69	$236.12 million	$1.76	26.81

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

Analyst Ratings

This is a summary of current ratings for Vishay Intertechnology and Yaskawa Electric, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Vishay Intertechnology	1	3	4	1	2.56
Yaskawa Electric	0	3	1	1	2.60

Vishay Intertechnology presently has a consensus price target of $35.86, indicating a potential upside of 33.86%. Given Vishay Intertechnology’s higher probable upside, equities research analysts plainly believe Vishay Intertechnology is more favorable than Yaskawa Electric.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Vishay Intertechnology	2.72%	3.80%	2.05%
Yaskawa Electric	6.32%	7.19%	4.34%

Summary

Yaskawa Electric beats Vishay Intertechnology on 9 of the 16 factors compared between the two stocks.

About Vishay Intertechnology

Vishay Intertechnology, Inc. designs and manufactures discrete semiconductors and passive electronic components used in a wide range of electronic systems. Its products include diodes, MOSFETs, optoelectronic components, resistors, inductors, capacitors and sensors. The company’s components are used in applications across markets such as automotive, industrial, computing, telecommunications, consumer electronics, medical and aerospace. Vishay serves customers worldwide through a global network of manufacturing and sales operations.

About Yaskawa Electric

Yaskawa Electric Corporation is a Japanese manufacturer of industrial automation and control equipment. Founded in 1915 and headquartered in Kitakyushu, Japan, the company serves customers in manufacturing and other industries around the world. Its products include AC drives, servo motors and controllers, and industrial robots. Yaskawa also provides automation systems and related technologies designed to help businesses control machinery, improve production processes, and automate tasks such as material handling, welding, and assembly.