CTS (NYSE:CTS – Get Free Report) and Vicor (NASDAQ:VICR – Get Free Report) are both computer and technology companies, but which is the superior investment? We will contrast the two companies based on the strength of their earnings, risk, profitability, valuation, dividends, institutional ownership and analyst recommendations.
Analyst Recommendations
This is a breakdown of current ratings and recommmendations for CTS and Vicor, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| CTS | 0 | 1 | 0 | 1 | 3.00 |
| Vicor | 0 | 1 | 3 | 1 | 3.00 |
Vicor has a consensus price target of $228.33, indicating a potential downside of 31.34%. Given Vicor’s higher probable upside, analysts plainly believe Vicor is more favorable than CTS.
Profitability
| Net Margins | Return on Equity | Return on Assets | |
| CTS | 12.46% | 12.90% | 9.13% |
| Vicor | 28.98% | 20.21% | 18.26% |
Valuation and Earnings
This table compares CTS and Vicor”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| CTS | $554.78 million | 3.44 | $65.32 million | $2.34 | 28.55 |
| Vicor | $452.70 million | 33.48 | $118.56 million | $2.99 | 111.22 |
Vicor has lower revenue, but higher earnings than CTS. CTS is trading at a lower price-to-earnings ratio than Vicor, indicating that it is currently the more affordable of the two stocks.
Volatility & Risk
CTS has a beta of 1.01, suggesting that its share price is 1% more volatile than the S&P 500. Comparatively, Vicor has a beta of 2.36, suggesting that its share price is 136% more volatile than the S&P 500.
Insider & Institutional Ownership
96.9% of CTS shares are held by institutional investors. Comparatively, 47.5% of Vicor shares are held by institutional investors. 2.4% of CTS shares are held by insiders. Comparatively, 31.3% of Vicor shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.
Summary
Vicor beats CTS on 11 of the 13 factors compared between the two stocks.
About CTS
CTS Corporation manufactures and sells sensors, actuators, and connectivity components in North America, Europe, and Asia. The company provides encoders, rotary position sensors, slide potentiometers, industrial and commercial rotary potentiometers. It also provides non-contacting, and contacting pedals; and eBrake pedals. In addition, the company offers flow meters, hydrophones, non-destructive testing, sonar, ultrasonic imaging, piezoelectric materials, piezoelectric sense products, and bulk products. Further, it provides eMobility, chassis, current sensors, clutch, brake, position sensors, stroke sensor, seating, speed, throttle, transmission, turbo, temperature sensors, and technical related products. Additionally, the company offers DIP, rotary selector, tactile, rotary DIP, and toggle switches, as well as provides transducer related products. Furthermore, it provides EMI, RFI, and RFI products; specialty and resistors; and frequency control products. The company sells and markets its products through its sales engineers, independent manufacturer representatives, and distributors. CTS Corporation was founded in 1896 and is based in Lisle, Illinois.
About Vicor
Vicor Corporation, together with its subsidiaries, designs, develops, manufactures, and markets modular power components and power systems for converting electrical power in the United States, Europe, the Asia Pacific, and internationally. The company offers a range of brick-format DC-DC converters; complementary components provide AC line rectification, input filtering, power factor correction, and transient protection; and input and output voltage, and output power products, as well as electrical and mechanical accessories. It also design, sells, and service custom power systems solutions. The company serves independent manufacturers of electronic devices, original equipment manufacturers, and their contract manufacturers in the aerospace and aviation, defense electronics, satellites, factory automation, instrumentation, test equipment, transportation, telecommunications and networking infrastructure and vehicles, and transportation markets. Vicor Corporation was incorporated in 1981 and is headquartered in Andover, Massachusetts.
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