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

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

Volatility & Risk

Electro-Sensors has a beta of 0.63, indicating that its share price is 37% less volatile than the S&P 500. Comparatively, Vishay Precision Group has a beta of 1.5, indicating that its share price is 50% more volatile than the S&P 500.

Profitability

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

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

Analyst Ratings

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

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

Vishay Precision Group has a consensus target price of $82.33, indicating a potential upside of 67.31%. Given Vishay Precision Group’s higher probable upside, analysts plainly believe Vishay Precision Group is more favorable than Electro-Sensors.

Earnings and Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Electro-Sensors	$10.48 million	2.61	$310,000.00	$0.08	96.75
Vishay Precision Group	$307.20 million	2.13	$5.29 million	$0.30	164.03

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.

Institutional and Insider Ownership

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

Summary

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

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.

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.