Head to Head Review: IPG Photonics (NASDAQ:IPGP) versus Intermolecular (NASDAQ:IMI)

IPG Photonics (NASDAQ:IPGP) and Intermolecular (NASDAQ:IMI) are both computer and technology companies, but which is the better investment? We will contrast the two companies based on the strength of their profitability, earnings, dividends, analyst recommendations, risk, valuation and institutional ownership.

Earnings and Valuation

This table compares IPG Photonics and Intermolecular’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
IPG Photonics $1.46 billion 4.92 $404.03 million $7.38 18.31
Intermolecular $33.66 million 1.71 -$3.41 million N/A N/A

IPG Photonics has higher revenue and earnings than Intermolecular.

Risk and Volatility

IPG Photonics has a beta of 2.14, indicating that its stock price is 114% more volatile than the S&P 500. Comparatively, Intermolecular has a beta of 0.94, indicating that its stock price is 6% less volatile than the S&P 500.

Profitability

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

Net Margins Return on Equity Return on Assets
IPG Photonics 24.94% 16.09% 13.84%
Intermolecular -16.48% -14.36% -11.14%

Insider and Institutional Ownership

64.8% of IPG Photonics shares are owned by institutional investors. Comparatively, 46.3% of Intermolecular shares are owned by institutional investors. 33.9% of IPG Photonics shares are owned by insiders. Comparatively, 46.0% of Intermolecular shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of current ratings for IPG Photonics and Intermolecular, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
IPG Photonics 0 6 7 0 2.54
Intermolecular 0 1 0 0 2.00

IPG Photonics currently has a consensus target price of $185.90, indicating a potential upside of 37.60%. Given IPG Photonics’ stronger consensus rating and higher probable upside, equities research analysts clearly believe IPG Photonics is more favorable than Intermolecular.

Summary

IPG Photonics beats Intermolecular on 11 of the 12 factors compared between the two stocks.

About IPG Photonics

IPG Photonics Corporation develops and manufactures a range of high-performance fiber lasers, fiber amplifiers, and diode lasers used in various applications primarily in materials processing worldwide. The company's laser products include low, medium, and high power lasers; 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; laser diode chips and packaged laser diodes; and high power optical fiber delivery cables, fiber couplers, beam switches, chillers, scanners, and other accessories. It also provides erbium-doped fiber and Raman amplifiers, and integrated communications systems, which are deployed in broadband networks, such as fiber to the home, fiber to the curb, passive optical networks, and dense wavelength division multiplexing (DWDM) networks; ytterbium and thulium specialty fiber amplifiers and broadband light sources; and single-frequency, linearly polarized, and polarization-maintaining versions of its amplifier products. In addition, the company offers interconnect, coarse wavelength division multiplexing, DWDM, and tunable-based pluggable interfaces to serve optical transmission needs; integrated laser systems; 2D compact flat sheet cutter systems and multi-axis systems; welding seam stepper and picker, a fiber laser welding tool; and specialized fiber laser systems for material processing applications. Its lasers and amplifiers are also used in materials processing, advanced communications, and medical applications. 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 Oxford, Massachusetts.

About Intermolecular

Intermolecular, Inc. engages in the development of advanced materials using high productivity combinatorial (HPC) technology platform for the semiconductors, consumer electronics, automotive, and aerospace industries worldwide. The company's HPC platform includes Tempus processing tools, automated characterization methods, and informatics analysis software for research and development using combinatorial process systems in concert with established chemical vapor deposition, physical vapor deposition, and atomic layer deposition methods. It serves various markets, including semiconductor, glass, advanced alloys, light-emitting diodes, flat-panel displays, and others. The company was formerly known as The BEP Group, Inc. and changed its name to Intermolecular, Inc. in November 2004. Intermolecular, Inc. was founded in 2004 and is headquartered in San Jose, California.

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