Head-To-Head Analysis: IPG Photonics (IPGP) vs. Electro Scientific Industries (ESIO)
IPG Photonics (NASDAQ: IPGP) and Electro Scientific Industries (NASDAQ:ESIO) are both industrials companies, but which is the better stock? We will compare the two businesses based on the strength of their profitability, dividends, risk, institutional ownership, valuation, earnings and analyst recommendations.
Institutional & Insider Ownership
56.5% of IPG Photonics shares are held by institutional investors. Comparatively, 75.4% of Electro Scientific Industries shares are held by institutional investors. 33.8% of IPG Photonics shares are held by insiders. Comparatively, 6.2% of Electro Scientific Industries shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.
This is a breakdown of current recommendations for IPG Photonics and Electro Scientific Industries, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Electro Scientific Industries||0||0||3||0||3.00|
IPG Photonics currently has a consensus target price of $172.88, indicating a potential downside of 15.70%. Electro Scientific Industries has a consensus target price of $26.33, indicating a potential upside of 34.01%. Given Electro Scientific Industries’ stronger consensus rating and higher probable upside, analysts plainly believe Electro Scientific Industries is more favorable than IPG Photonics.
Earnings and Valuation
This table compares IPG Photonics and Electro Scientific Industries’ top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|IPG Photonics||$1.01 billion||10.93||$260.75 million||$6.80||30.16|
|Electro Scientific Industries||$161.02 million||4.09||-$37.40 million||($0.63)||-31.19|
IPG Photonics has higher revenue and earnings than Electro Scientific Industries. Electro Scientific Industries is trading at a lower price-to-earnings ratio than IPG Photonics, indicating that it is currently the more affordable of the two stocks.
This table compares IPG Photonics and Electro Scientific Industries’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Electro Scientific Industries||-9.00%||-13.50%||-8.93%|
Volatility and Risk
IPG Photonics has a beta of 1.7, meaning that its stock price is 70% more volatile than the S&P 500. Comparatively, Electro Scientific Industries has a beta of 0.74, meaning that its stock price is 26% less volatile than the S&P 500.
IPG Photonics beats Electro Scientific Industries on 10 of the 13 factors compared between the two stocks.
About IPG Photonics
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.
About Electro Scientific Industries
Electro Scientific Industries, Inc. and its subsidiaries supply laser-based manufacturing solutions for industries reliant on microtechnologies. The Company operates through two segments: Component Processing and Micromachining. The Component Processing segment includes interconnect products, semiconductor products and component products. The interconnect, semiconductor and component products are sold to manufacturers of electronic components and are used to drill, cut, trim, ablate and test and mark features for the functionality of the component. The Micromachining segment includes products that are sold to manufacturers of end devices across various industries and are used to drill, cut or mark features on a range of materials, generally on the casing or external surface of the end device. Its integrated solutions allow industrial designers and process engineers to control the power of laser light to transform materials. It has operations in Asia, Europe and North America.
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