IPG Photonics (NASDAQ:IPGP) and Omron (OTCMKTS:OMRNY) Head-To-Head Analysis

Omron (OTCMKTS:OMRNY) and IPG Photonics (NASDAQ:IPGP) are both mid-cap technology companies, but which is the better investment? We will compare the two businesses based on the strength of their earnings, institutional ownership, profitability, analyst recommendations, risk, valuation and dividends.

Risk and Volatility

Omron has a beta of 1.29, suggesting that its stock price is 29% more volatile than the S&P 500. Comparatively, IPG Photonics has a beta of 1, suggesting that its stock price has a similar volatility profile to the S&P 500.

Earnings & Valuation

This table compares Omron and IPG Photonics”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Omron	$5.10 billion	1.33	$188.01 million	$1.05	31.26
IPG Photonics	$1.00 billion	3.15	$31.10 million	$0.65	114.49

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

Institutional and Insider Ownership

1.1% of Omron shares are held by institutional investors. Comparatively, 93.8% of IPG Photonics shares are held by institutional investors. 37.5% of IPG Photonics shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Analyst Ratings

This is a summary of current ratings and recommmendations for Omron and IPG Photonics, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Omron	0	2	0	0	2.00
IPG Photonics	1	2	5	0	2.50

IPG Photonics has a consensus target price of $142.60, suggesting a potential upside of 91.62%. Given IPG Photonics’ stronger consensus rating and higher probable upside, analysts plainly believe IPG Photonics is more favorable than Omron.

Profitability

This table compares Omron and IPG Photonics’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Omron	4.04%	3.68%	2.42%
IPG Photonics	2.58%	3.39%	2.98%

Summary

IPG Photonics beats Omron on 8 of the 14 factors compared between the two stocks.

About Omron

OMRON Corporation engages in industrial automation, device and module solutions, social systems, and healthcare businesses worldwide. The Industrial Automation Business offers sensors, switches, safety and control components, relays, motion and drives, robotics, energy conservation, power supplies, and automation system products. It also offers environmental mobility, digital devices, food and commodity, logistic and warehouse automation, medical, robotic, panel, vision, software, and traceability related solutions. The Social Systems, Solutions and Service Business provides energy, public transport, traffic safety, network protection, payment, infrastructure monitoring, management service, and DX solutions, as well as offers remote surveillance/monitoring, automation/robotics, software development, engineering/maintenance, and other services. The Healthcare Business provides cardiovascular, respiratory care, pain management, remote patient monitoring, and other solutions. The Device and Module Solutions Business offers relays, switches, connectors, and sensors. OMRON Corporation was founded in 1933 and is headquartered in Kyoto, Japan.

About IPG Photonics

IPG Photonics Corporation develops, manufactures, and sells various high-performance fiber lasers, fiber amplifiers, and diode lasers used in various applications primarily in materials processing worldwide. Its laser products include hybrid fiber-solid state lasers with green and ultraviolet wavelengths; fiber pigtailed packaged diodes and fiber coupled direct diode laser systems; high-energy pulsed lasers, multi-wavelength and tunable lasers, and single-polarization and single-frequency lasers; and high-power optical fiber delivery cables, fiber couplers, beam switches, chillers, scanners, and other accessories. The company also offers integrated laser systems; LightWELD, a handheld laser welding system; 2D compact flat sheet cutter systems and multi-axis systems for fine welding, cutting, and drilling; welding seam stepper and picker, a fiber laser welding tool; high precision laser systems; specialized fiber laser systems for material processing applications; robotic and multi-axis workstations for welding, cutting and cladding, flatbed cutting systems, and diode markers; and laser and non-laser robotic welding and automation solutions. It serves materials processing, communications, medical procedures, and advanced applications and communications markets. The company markets its products to original equipment manufacturers, system integrators, and end users through direct sales force, as well as through agreements with independent sales representatives and distributors. IPG Photonics Corporation was founded in 1990 and is headquartered in Marlborough, Massachusetts.