Head-To-Head Analysis: Frequency Electronics (NASDAQ:FEIM) & Vishay Precision Group (NYSE:VPG)

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

Analyst Ratings

This is a breakdown of current recommendations for Vishay Precision Group and Frequency Electronics, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Vishay Precision Group	1	1	2	0	2.25
Frequency Electronics	0	2	1	1	2.75

Vishay Precision Group currently has a consensus target price of $82.33, indicating a potential upside of 31.34%. Frequency Electronics has a consensus target price of $59.67, indicating a potential downside of 30.24%. Given Vishay Precision Group’s higher probable upside, analysts clearly believe Vishay Precision Group is more favorable than Frequency Electronics.

Earnings & Valuation

This table compares Vishay Precision Group and Frequency Electronics”s 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	$307.20 million	2.72	$5.29 million	$0.30	208.96
Frequency Electronics	$63.23 million	15.24	-$900,000.00	$0.25	342.12

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

Risk and Volatility

Vishay Precision Group has a beta of 1.42, indicating that its share price is 42% more volatile than the S&P 500. Comparatively, Frequency Electronics has a beta of 0.72, indicating that its share price is 28% less volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Vishay Precision Group	1.20%	1.77%	1.31%
Frequency Electronics	3.68%	3.63%	2.49%

Insider and Institutional Ownership

87.6% of Vishay Precision Group shares are owned by institutional investors. Comparatively, 58.6% of Frequency Electronics shares are owned by institutional investors. 7.6% of Vishay Precision Group shares are owned by insiders. Comparatively, 17.3% of Frequency Electronics shares are owned by 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

Frequency Electronics beats Vishay Precision Group on 8 of the 15 factors compared between the two stocks.

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.

About Frequency Electronics

Frequency Electronics, Inc., together with its subsidiaries, engages in designing, development, and manufacturing of precision time and frequency control products and components for microwave integrated circuit applications. It operates through two segments, FEI-NY and FEI-Zyfer. The FEI-NY segment offers precision time and frequency control products for communication satellites, terrestrial cellular telephone or other ground-based telecommunication stations; and other components and systems for the U.S. military; and provides design and technical support for satellite business. FEI-Zyfer segment offers global positioning system technologies to systems and subsystems for secure communications, both government and commercial, and other locator applications; and engages in sale and support of wireline telecommunications products, including US5G. It markets its products directly and through independent sales representative organizations located in the United States, Europe, and Asia. Frequency Electronics, Inc. was founded in 1961 and is headquartered in Mitchel Field, New York.