Critical Analysis: IPG Photonics Corporation (IPGP) and Its Rivals
IPG Photonics Corporation (NASDAQ: IPGP) is one of 32 public companies in the “Electronic Component” industry, but how does it contrast to its competitors? We will compare IPG Photonics Corporation to similar companies based on the strength of its risk, institutional ownership, analyst recommendations, dividends, earnings, profitability and valuation.
This table compares IPG Photonics Corporation and its competitors’ 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%|
|IPG Photonics Corporation Competitors||2.04%||-1.99%||0.66%|
Insider and Institutional Ownership
59.1% of IPG Photonics Corporation shares are owned by institutional investors. Comparatively, 56.1% of shares of all “Electronic Component” companies are owned by institutional investors. 33.8% of IPG Photonics Corporation shares are owned by insiders. Comparatively, 9.1% of shares of all “Electronic Component” companies are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.
Valuation and Earnings
This table compares IPG Photonics Corporation and its competitors top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||EBITDA||Price/Earnings Ratio|
|IPG Photonics Corporation||$1.20 billion||$515.19 million||30.85|
|IPG Photonics Corporation Competitors||$895.26 million||$186.21 million||10.46|
IPG Photonics Corporation has higher revenue and earnings than its competitors. IPG Photonics Corporation is trading at a higher price-to-earnings ratio than its competitors, indicating that it is currently more expensive than other companies in its industry.
Risk and Volatility
IPG Photonics Corporation has a beta of 1.64, meaning that its stock price is 64% more volatile than the S&P 500. Comparatively, IPG Photonics Corporation’s competitors have a beta of 1.02, meaning that their average stock price is 2% more volatile than the S&P 500.
This is a breakdown of current recommendations for IPG Photonics Corporation and its competitors, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|IPG Photonics Corporation||0||3||5||0||2.63|
|IPG Photonics Corporation Competitors||99||350||506||6||2.44|
IPG Photonics Corporation presently has a consensus price target of $150.00, suggesting a potential downside of 18.57%. As a group, “Electronic Component” companies have a potential upside of 2.81%. Given IPG Photonics Corporation’s competitors higher possible upside, analysts plainly believe IPG Photonics Corporation has less favorable growth aspects than its competitors.
IPG Photonics Corporation beats its competitors on 11 of the 13 factors compared.
IPG Photonics Corporation Company Profile
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.
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