Critical Review: Vishay Intertechnology (NYSE:VSH) & Wolfspeed (NYSE:WOLF)

Vishay Intertechnology (NYSE:VSH) and Wolfspeed (NYSE:WOLF) are both computer and technology companies, but which is the better business? We will contrast the two businesses based on the strength of their earnings, risk, dividends, institutional ownership, profitability, valuation and analyst recommendations.

Risk and Volatility

Vishay Intertechnology has a beta of 1.09, suggesting that its share price is 9% more volatile than the S&P 500. Comparatively, Wolfspeed has a beta of 1.29, suggesting that its share price is 29% more volatile than the S&P 500.

Profitability

This table compares Vishay Intertechnology and Wolfspeed’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Vishay Intertechnology	-2.28%	1.46%	0.73%
Wolfspeed	-146.43%	-103.97%	-7.00%

Valuation and Earnings

This table compares Vishay Intertechnology and Wolfspeed”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Vishay Intertechnology	$2.94 billion	0.74	-$31.15 million	($0.49)	-32.65
Wolfspeed	$807.20 million	0.08	-$864.20 million	($8.36)	-0.05

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

Institutional and Insider Ownership

93.7% of Vishay Intertechnology shares are held by institutional investors. 8.3% of Vishay Intertechnology shares are held by company insiders. Comparatively, 0.8% of Wolfspeed 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.

Analyst Ratings

This is a summary of recent ratings and price targets for Vishay Intertechnology and Wolfspeed, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Vishay Intertechnology	0	2	0	0	2.00
Wolfspeed	4	6	4	0	2.00

Vishay Intertechnology currently has a consensus price target of $20.50, indicating a potential upside of 28.14%. Wolfspeed has a consensus price target of $11.15, indicating a potential upside of 2,688.46%. Given Wolfspeed’s higher probable upside, analysts plainly believe Wolfspeed is more favorable than Vishay Intertechnology.

Summary

Vishay Intertechnology beats Wolfspeed on 9 of the 13 factors compared between the two stocks.

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.

About Wolfspeed

Wolfspeed, Inc. operates as a powerhouse semiconductor company focuses on silicon carbide and gallium nitride (GaN) technologies in Europe, Hong Kong, China, rest of Asia-Pacific, the United States, and internationally. It offers silicon carbide and GaN materials, including silicon carbide bare wafers, epitaxial wafers, and GaN epitaxial layers on silicon carbide wafers to manufacture products for RF, power, and other applications. The company also provides power devices, such as silicon carbide Schottky diodes, metal oxide semiconductor field effect transistors (MOSFETs), and power modules for customers and distributors to use in applications, including electric vehicles comprising charging infrastructure, server power supplies, solar inverters, uninterruptible power supplies, industrial power supplies, and other applications. In addition, it offers RF devices comprising GaN-based die, high-electron mobility transistors, monolithic microwave integrated circuits, and laterally diffused MOSFET power transistors for telecommunications infrastructure, military, and other commercial applications. The company was formerly known as Cree, Inc. and changed its name to Wolfspeed, Inc. in October 2021. Wolfspeed, Inc. was incorporated in 1987 and is headquartered in Durham, North Carolina.