nVent Electric (NYSE:NVT – Get Free Report) and Vicor (NASDAQ:VICR – Get Free Report) are both large-cap computer and technology companies, but which is the better investment? We will contrast the two businesses based on the strength of their valuation, risk, earnings, dividends, analyst recommendations, institutional ownership and profitability.
Institutional & Insider Ownership
90.1% of nVent Electric shares are held by institutional investors. Comparatively, 47.5% of Vicor shares are held by institutional investors. 1.7% of nVent Electric shares are held by insiders. Comparatively, 31.3% of Vicor shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.
Analyst Ratings
This is a summary of current ratings and recommmendations for nVent Electric and Vicor, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| nVent Electric | 0 | 1 | 11 | 1 | 3.00 |
| Vicor | 0 | 1 | 3 | 1 | 3.00 |
Profitability
This table compares nVent Electric and Vicor’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| nVent Electric | 11.37% | 16.82% | 9.03% |
| Vicor | 28.98% | 20.21% | 18.26% |
Valuation & Earnings
This table compares nVent Electric and Vicor”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| nVent Electric | $3.89 billion | 6.76 | $710.20 million | $3.01 | 54.08 |
| Vicor | $452.70 million | 27.29 | $118.56 million | $2.99 | 90.65 |
nVent Electric has higher revenue and earnings than Vicor. nVent Electric is trading at a lower price-to-earnings ratio than Vicor, indicating that it is currently the more affordable of the two stocks.
Risk & Volatility
nVent Electric has a beta of 1.35, meaning that its stock price is 35% more volatile than the S&P 500. Comparatively, Vicor has a beta of 2.36, meaning that its stock price is 136% more volatile than the S&P 500.
Summary
Vicor beats nVent Electric on 7 of the 13 factors compared between the two stocks.
About nVent Electric
nVent Electric plc, together with its subsidiaries, designs, manufactures, markets, installs, and services electrical connection and protection solutions in North America, Europe, the Middle East, Africa, the Asia Pacific, and internationally. The company operates through three segments: Enclosures, Electrical & Fastening Solutions, and Thermal Management. The Enclosures segment provides solutions to protect electronics and data in mission critical applications, including data solutions. This segment also offers digital and automation solutions, system integrations, and global services. The Electrical & Fastening Solutions segment provides solutions that connect and protect power and data infrastructure. This segment also offers power connections, fastening solutions, cable management solutions, grounding and bonding systems, and tools and test instruments. The Thermal Management segment offers heat management solutions that protect people and assets. This segment includes heat tracing for freeze protection and process temperature maintenance and control; pipe freeze protection, surface deicing, hot water temperature maintenance, floor heating, fire-rated wiring, and leak detection; and heat trace systems, connected controls, remote monitoring, and annual service programs. The company markets its products through electrical distributors, contractors, and original equipment manufacturers under the CADDY, ERICO, GARDNER BENDER, HOFFMAN, ILSCO, RAYCHEM, SCHROFF, and TRACER brand names. Its products are used for various applications, such as industrial, commercial and residential, infrastructure, and energy. nVent Electric plc was founded in 1903 and is based in London, the United Kingdom.
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.
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