Novanta (NASDAQ: GSIG) and IPG Photonics Corporation (NASDAQ:IPGP) are both industrials companies, but which is the superior investment? We will contrast the two businesses based on the strength of their risk, analyst recommendations, earnings, dividends, valuation, profitability and institutional ownership.
Valuation and Earnings
This table compares Novanta and IPG Photonics Corporation’s gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|IPG Photonics Corporation||$1.20 billion||8.22||$515.19 million||$5.97||30.68|
IPG Photonics Corporation has higher revenue and earnings than Novanta.
This is a breakdown of recent recommendations and price targets for Novanta and IPG Photonics Corporation, as reported 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 has a consensus price target of $150.00, suggesting a potential downside of 18.11%. Given IPG Photonics Corporation’s higher probable upside, analysts clearly believe IPG Photonics Corporation is more favorable than Novanta.
Institutional & Insider Ownership
59.1% of IPG Photonics Corporation shares are held by institutional investors. 33.8% of IPG Photonics Corporation shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.
This table compares Novanta and IPG Photonics 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%|
IPG Photonics Corporation beats Novanta on 8 of the 8 factors compared between the two stocks.
Novanta Company Profile
Novanta Inc., formerly GSI Group Inc., designs, develops, manufactures and sells precision photonic and motion control components and subsystems. The Company’s segments are Photonics, Vision and Precision Motion. The Photonics segment designs, manufactures and markets photonics-based solutions, including carbon dioxide (CO2) laser sources, laser scanning and laser beam delivery products, to customers around the world. The Vision Technologies segment designs, manufactures and markets a range of medical grade technologies, including visualization solutions, imaging informatics products, optical data collection and machine vision technologies, radio frequency identification (RFID) technologies, and thermal printers, to customers around the world. The Company’s Precision Motion segment designs, manufactures and markets optical encoders, precision motors and other motion control technology, air bearing spindles and precision machined components to customers around the world.
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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