IPG Photonics Corporation (NASDAQ: IPGP) is one of 32 publicly-traded companies in the “Electronic Component” industry, but how does it contrast to its competitors? We will compare IPG Photonics Corporation to related businesses based on the strength of its earnings, profitability, institutional ownership, dividends, risk, valuation and analyst recommendations.

Volatility & Risk

IPG Photonics Corporation has a beta of 1.68, indicating that its stock price is 68% more volatile than the S&P 500. Comparatively, IPG Photonics Corporation’s competitors have a beta of 1.03, indicating that their average stock price is 3% more volatile than the S&P 500.

Institutional & Insider 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 large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Profitability

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 1.90% -2.19% 0.48%

Earnings & Valuation

This table compares IPG Photonics Corporation and its competitors top-line revenue, earnings per share and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
IPG Photonics Corporation $1.20 billion $515.19 million 32.30
IPG Photonics Corporation Competitors $895.21 million $186.21 million 11.27

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.

Analyst Recommendations

This is a summary of current ratings and target prices for IPG Photonics Corporation and its competitors, 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 Competitors 42 257 465 6 2.56

IPG Photonics Corporation presently has a consensus price target of $150.00, indicating a potential downside of 22.21%. As a group, “Electronic Component” companies have a potential downside of 2.54%. Given IPG Photonics Corporation’s competitors higher possible upside, analysts clearly believe IPG Photonics Corporation has less favorable growth aspects than its competitors.

Summary

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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