Contrasting Vishay Precision Group (NYSE:VPG) & Nortech Systems (NASDAQ:NSYS)

Nortech Systems (NASDAQ:NSYS) and Vishay Precision Group (NYSE:VPG) are both small-cap computer and technology companies, but which is the better business? We will compare the two businesses based on the strength of their valuation, earnings, profitability, dividends, risk, institutional ownership and analyst recommendations.

Analyst Recommendations

This is a breakdown of recent ratings for Nortech Systems and Vishay Precision Group, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Nortech Systems	1	0	0	0	1.00
Vishay Precision Group	0	2	2	0	2.50

Vishay Precision Group has a consensus target price of $38.83, indicating a potential downside of 6.78%. Given Vishay Precision Group’s stronger consensus rating and higher possible upside, analysts plainly believe Vishay Precision Group is more favorable than Nortech Systems.

Profitability

This table compares Nortech Systems and Vishay Precision Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Nortech Systems	-2.25%	-7.93%	-3.56%
Vishay Precision Group	2.65%	2.02%	1.45%

Valuation & Earnings

This table compares Nortech Systems and Vishay Precision Group”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Nortech Systems	$128.13 million	0.17	-$1.29 million	($0.95)	-8.15
Vishay Precision Group	$306.52 million	1.80	$9.91 million	$0.60	69.43

Vishay Precision Group has higher revenue and earnings than Nortech Systems. Nortech Systems 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.

Institutional & Insider Ownership

3.1% of Nortech Systems shares are held by institutional investors. Comparatively, 87.6% of Vishay Precision Group shares are held by institutional investors. 11.0% of Nortech Systems shares are held by company insiders. Comparatively, 7.7% of Vishay Precision Group shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Summary

Vishay Precision Group beats Nortech Systems on 12 of the 13 factors compared between the two stocks.

About Nortech Systems

Nortech Systems Incorporated provides design and manufacturing solutions for electromedical devices, electromechanical systems, assemblies, and components in the United States, Mexico, and China. It offers a range of technical and manufacturing, and support services, including project management, designing, testing, prototyping, manufacturing, supply chain management, and post-market services. The company also provides manufacturing and engineering services for medical devices, printed circuit board assemblies, wire and cable assemblies, and higher-level electromechanical assemblies. In addition, it offers engineering and repair services. The company serves original equipment manufacturers in the medical, aerospace and defense, and industrial markets through business development teams and independent manufacturers' representatives. Nortech Systems Incorporated was founded in 1990 and is headquartered in Maple Grove, Minnesota.

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.