Head to Head Review: Vishay Intertechnology (NYSE:VSH) & Omron (OTCMKTS:OMRNY)
by Danessa Lincoln · The Markets DailyOmron (OTCMKTS:OMRNY – Get Free Report) and Vishay Intertechnology (NYSE:VSH – Get Free Report) are both mid-cap technology companies, but which is the superior stock? We will contrast the two businesses based on the strength of their risk, institutional ownership, dividends, profitability, analyst recommendations, earnings and valuation.
Volatility & Risk
Omron has a beta of 1.22, suggesting that its stock price is 22% more volatile than the S&P 500. Comparatively, Vishay Intertechnology has a beta of 1.79, suggesting that its stock price is 79% more volatile than the S&P 500.
Profitability
This table compares Omron and Vishay Intertechnology’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Omron | 4.04% | 3.68% | 2.42% |
| Vishay Intertechnology | 0.86% | 1.84% | 0.94% |
Dividends
Omron pays an annual dividend of $0.47 per share and has a dividend yield of 1.4%. Vishay Intertechnology pays an annual dividend of $0.40 per share and has a dividend yield of 1.5%. Omron pays out 44.8% of its earnings in the form of a dividend. Vishay Intertechnology pays out 210.5% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.
Analyst Recommendations
This is a breakdown of current ratings for Omron and Vishay Intertechnology, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Omron | 0 | 2 | 0 | 0 | 2.00 |
| Vishay Intertechnology | 1 | 2 | 4 | 2 | 2.78 |
Vishay Intertechnology has a consensus target price of $36.67, indicating a potential upside of 37.12%. Given Vishay Intertechnology’s stronger consensus rating and higher possible upside, analysts plainly believe Vishay Intertechnology is more favorable than Omron.
Valuation and Earnings
This table compares Omron and Vishay Intertechnology”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Omron | $5.10 billion | 1.34 | $188.01 million | $1.05 | 31.55 |
| Vishay Intertechnology | $3.07 billion | 1.34 | -$8.98 million | $0.19 | 140.74 |
Omron has higher revenue and earnings than Vishay Intertechnology. Omron is trading at a lower price-to-earnings ratio than Vishay Intertechnology, indicating that it is currently the more affordable of the two stocks.
Institutional & Insider Ownership
1.1% of Omron shares are held by institutional investors. Comparatively, 93.7% of Vishay Intertechnology shares are held by institutional investors. 8.3% of Vishay Intertechnology shares are held by company 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
Vishay Intertechnology beats Omron on 9 of the 17 factors compared between the two stocks.
About Omron
OMRON Corporation engages in industrial automation, device and module solutions, social systems, and healthcare businesses worldwide. The Industrial Automation Business offers sensors, switches, safety and control components, relays, motion and drives, robotics, energy conservation, power supplies, and automation system products. It also offers environmental mobility, digital devices, food and commodity, logistic and warehouse automation, medical, robotic, panel, vision, software, and traceability related solutions. The Social Systems, Solutions and Service Business provides energy, public transport, traffic safety, network protection, payment, infrastructure monitoring, management service, and DX solutions, as well as offers remote surveillance/monitoring, automation/robotics, software development, engineering/maintenance, and other services. The Healthcare Business provides cardiovascular, respiratory care, pain management, remote patient monitoring, and other solutions. The Device and Module Solutions Business offers relays, switches, connectors, and sensors. OMRON Corporation was founded in 1933 and is headquartered in Kyoto, Japan.
About Vishay Intertechnology
Vishay Intertechnology, Inc. manufactures and sells discrete semiconductors and passive electronic components in Asia, Europe, and the Americas. The company operates through Metal Oxide Semiconductor Field Effect Transistors (MOSFETs), Diodes, Optoelectronic Components, Resistors, Inductors, and Capacitors segments. The MOSFETs segment offers low- and medium-voltage TrenchFET MOSFETs, high-voltage planar MOSFETs, high voltage Super Junction MOSFETs, power integrated circuits, and integrated function power devices. The Diodes segment provides rectifiers, small signal diodes, protection diodes, thyristors/silicon-controlled rectifiers, and power modules. The Optoelectronic Components segment contains standard and customer specific optoelectronic components, such as infrared (IR) emitters and detectors, IR remote control receivers, optocouplers, solid-state relays, optical sensors, light-emitting diodes, 7-segment displays, and IR data transceiver modules. The Resistors segment offers resistors, which are basic components used in various forms of electronic circuitry to adjust and regulate levels of voltage and current. The Inductors segment provides inductors for use as an internal magnetic field to change alternating current phase and resist alternating current. The Capacitors segment offers capacitors, which store energy and discharge it when needed. It sells its products under Siliconix, Dale, Draloric, Beyschlag, Sfernice, MCB, UltraSource, Applied Thin-Film Products, IHLP, HiRel Systems, Sprague, Vitramon, Barry, Roederstein, ESTA, and BCcomponents brand names. The company serves industrial, automotive, telecommunications, computing, consumer products, power supplies, military and aerospace, and medical end markets. Vishay Intertechnology, Inc. was incorporated in 1962 and is headquartered in Malvern, Pennsylvania.