Analyzing IPG Photonics (NASDAQ:IPGP) and B.O.S. Better Online Solutions (NASDAQ:BOSC)

IPG Photonics (NASDAQ:IPGP) and B.O.S. Better Online Solutions (NASDAQ:BOSC) are both technology companies, but which is the better investment? We will compare the two companies based on the strength of their analyst recommendations, valuation, dividends, profitability, earnings, institutional ownership and risk.

Profitability

This table compares IPG Photonics and B.O.S. Better Online Solutions’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
IPG Photonics	2.58%	3.39%	2.98%
B.O.S. Better Online Solutions	7.22%	12.69%	8.29%

Analyst Recommendations

This is a summary of current ratings and recommmendations for IPG Photonics and B.O.S. Better Online Solutions, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
IPG Photonics	1	2	7	0	2.60
B.O.S. Better Online Solutions	0	1	1	0	2.50

IPG Photonics presently has a consensus price target of $131.67, indicating a potential upside of 101.60%. B.O.S. Better Online Solutions has a consensus price target of $8.00, indicating a potential upside of 105.13%. Given B.O.S. Better Online Solutions’ higher probable upside, analysts clearly believe B.O.S. Better Online Solutions is more favorable than IPG Photonics.

Institutional & Insider Ownership

93.8% of IPG Photonics shares are held by institutional investors. Comparatively, 15.1% of B.O.S. Better Online Solutions shares are held by institutional investors. 37.5% of IPG Photonics shares are held by insiders. Comparatively, 4.3% of B.O.S. Better Online Solutions shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Risk & Volatility

IPG Photonics has a beta of 1, meaning that its stock price has a similar volatility profile to the S&P 500.Comparatively, B.O.S. Better Online Solutions has a beta of 1.09, meaning that its stock price is 9% more volatile than the S&P 500.

Valuation & Earnings

This table compares IPG Photonics and B.O.S. Better Online Solutions”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
IPG Photonics	$1.00 billion	2.77	$31.10 million	$0.94	69.48
B.O.S. Better Online Solutions	$50.57 million	0.55	$3.61 million	$0.52	7.50

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

Summary

IPG Photonics beats B.O.S. Better Online Solutions on 9 of the 14 factors compared between the two stocks.

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.

About B.O.S. Better Online Solutions

B.O.S. Better Online Solutions Ltd. provides intelligent robotics, radio frequency identification (RFID), and supply chain solutions for enterprises worldwide. The Intelligent Robotics Division provides custom-made machines for industrial automation and assembly of products and packing that offer technological solutions. The RFID Division provides hardware products, such as thermal and barcode printers; RFID and barcode scanners and readers; wireless, mobile, and forklift terminals; wireless infrastructure; active and passive RFID tags; ribbons, labels, and tags; and RFID systems for libraries. It also develops Warehouse Management System, a data collection solution for logistics management in logistic centers and warehouses; RFID-based systems for tracking inventory in a produce packing house; automatic systems for industrial packing lines; automatic systems to track the production line; and automatic systems to identify and track vehicles for transportation-related settings. In addition, this segment provides maintenance and repair services for data collection equipment, as well as warehouse and on-site service plans; on-site inventory count services in various fields; and asset tagging and counting services for corporate and governmental entities. The Supply Chain Division offers electro-mechanical components, electronics components, communications products, and components consolidation services to aerospace, defense, and other industries. This segment also provides inventory and quality control management of components entering production lines; and inventory management services for ongoing projects, including warehouse functions. The company markets its products through direct sales and sales agents, as well as through distributors. B.O.S. Better Online Solutions Ltd. was incorporated in 1990 and is headquartered in Rishon LeZion, Israel.