Head-To-Head Comparison: IPG Photonics Corporation (IPGP) and CTS Corporation (CTS)
IPG Photonics Corporation (NASDAQ: IPGP) and CTS Corporation (NYSE:CTS) are both computer and technology companies, but which is the superior investment? We will compare the two companies based on the strength of their profitability, earnings, dividends, risk, analyst recommendations, valuation and institutional ownership.
This table compares IPG Photonics Corporation and CTS Corporation’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|IPG Photonics Corporation||26.84%||19.75%||17.31%|
This is a breakdown of current ratings and price targets for IPG Photonics Corporation and CTS Corporation, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|IPG Photonics Corporation||0||3||5||0||2.63|
IPG Photonics Corporation currently has a consensus price target of $146.43, suggesting a potential downside of 13.13%. CTS Corporation has a consensus price target of $24.50, suggesting a potential upside of 9.62%. Given CTS Corporation’s higher probable upside, analysts plainly believe CTS Corporation is more favorable than IPG Photonics Corporation.
Earnings & Valuation
This table compares IPG Photonics Corporation and CTS Corporation’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|IPG Photonics Corporation||$1.20 billion||7.56||$515.19 million||$5.97||28.24|
|CTS Corporation||$407.12 million||1.81||$76.03 million||$0.91||24.56|
IPG Photonics Corporation has higher revenue and earnings than CTS Corporation. CTS Corporation is trading at a lower price-to-earnings ratio than IPG Photonics Corporation, indicating that it is currently the more affordable of the two stocks.
Volatility & Risk
IPG Photonics Corporation has a beta of 1.7, indicating that its share price is 70% more volatile than the S&P 500. Comparatively, CTS Corporation has a beta of 1.23, indicating that its share price is 23% more volatile than the S&P 500.
Insider & Institutional Ownership
60.0% of IPG Photonics Corporation shares are owned by institutional investors. Comparatively, 91.9% of CTS Corporation shares are owned by institutional investors. 34.2% of IPG Photonics Corporation shares are owned by insiders. Comparatively, 1.7% of CTS Corporation shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.
CTS Corporation pays an annual dividend of $0.16 per share and has a dividend yield of 0.7%. IPG Photonics Corporation does not pay a dividend. CTS Corporation pays out 17.6% of its earnings in the form of a dividend. IPG Photonics Corporation has increased its dividend for 3 consecutive years.
IPG Photonics Corporation beats CTS Corporation on 14 of the 17 factors compared between the two stocks.
About IPG Photonics Corporation
IPG Photonics Corporation is a developer and manufacturer of a line of fiber lasers, fiber amplifiers, diode lasers, laser systems and optical accessories that are used for various applications. The Company offers a line of lasers and amplifiers, which are used in materials processing, communications and medical applications. The Company sells its products globally to original equipment manufacturers (OEMs), system integrators and end users. The Company’s manufacturing facilities are located in the United States, Germany and Russia. The Company offers laser-based systems for certain markets and applications. Its products are designed to be used as general-purpose energy or light sources. Its product line includes High-Power Ytterbium CW (1,000-100,000 Watts), Mid-Power Ytterbium CW (100-999 Watts), Pulsed Ytterbium (0.1 to 200 Watts), Pulsed and CW, Quasi-CW Ytterbium (100-4,500 Watts), Erbium Amplifiers and Transceivers.
About CTS Corporation
CTS Corporation is a manufacturer of sensors, electronic components and actuators. The Company designs, manufactures and sells a line of sensors, electronic components and actuators primarily to original equipment manufacturers (OEMs) for the transportation, industrial, medical, information technology, defense and aerospace, and communications markets. It operates manufacturing facilities in North America, Asia and Europe. Its products perform specific electronic functions for a given product family and are intended for use in customer assemblies. The Company’s products consist principally of sensors and actuators used in passenger or commercial vehicles; electronic components used in communications infrastructure, information technology and other high-speed applications; switches and potentiometers supplied to multiple markets, and fabricated piezoelectric materials and substrates used primarily in medical, industrial, defense and aerospace, and information technology markets.
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