Vicor (NASDAQ:VICR) & Nidec (OTCMKTS:NJDCY) Head to Head Contrast

Vicor (NASDAQ:VICR) and Nidec (OTCMKTS:NJDCY) are both computer and technology companies, but which is the better investment? We will contrast the two companies based on the strength of their institutional ownership, valuation, analyst recommendations, profitability, earnings, dividends and risk.

Insider & Institutional Ownership

47.5% of Vicor shares are held by institutional investors. Comparatively, 0.2% of Nidec shares are held by institutional investors. 31.3% of Vicor shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Volatility and Risk

Vicor has a beta of 1.75, meaning that its stock price is 75% more volatile than the S&P 500. Comparatively, Nidec has a beta of 1.12, meaning that its stock price is 12% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of current ratings for Vicor and Nidec, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Vicor	0	1	0	1	3.00
Nidec	0	0	0	0	0.00

Vicor currently has a consensus price target of $43.00, suggesting a potential downside of 5.95%. Given Vicor’s stronger consensus rating and higher probable upside, equities research analysts clearly believe Vicor is more favorable than Nidec.

Profitability

This table compares Vicor and Nidec’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Vicor	15.44%	11.32%	9.96%
Nidec	6.06%	9.18%	4.79%

Earnings and Valuation

This table compares Vicor and Nidec”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Vicor	$359.06 million	5.76	$6.13 million	$1.46	31.32
Nidec	$17.12 billion	2.71	$1.11 billion	$0.23	21.17

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

Summary

Vicor beats Nidec on 12 of the 14 factors compared between the two stocks.

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.

About Nidec

Nidec Corporation, together with its subsidiaries, develops, manufactures, and sells motors, electronics and optical components, and other related products in Japan and internationally. The company offers medium- and large-size motors, small-size and precision motors, motor-related products, units and modules, automotive components, mechanical equipment/machine tools, inspection and measuring equipment, electronic devices, sensors, and other products, as well as mold, molding, cutting, and machining components. Its products are used for applications in robotics, IoT products, automotive components, home appliances, logistics/agriculture, information technology, office automation, mobile optical components, medical and health care products, housing equipment, commercial and professional products, industrial machinery, and processing/inspection equipment. The company was incorporated in 1973 and is headquartered in Kyoto, Japan..