IPG Photonics Corporation (IPGP) versus NVE Corporation (NVEC) Head-To-Head Review
NVE Corporation (NASDAQ: NVEC) and IPG Photonics Corporation (NASDAQ:IPGP) are both computer and technology companies, but which is the better investment? We will compare the two businesses based on the strength of their profitability, earnings, institutional ownership, dividends, analyst recommendations, valuation and risk.
NVE Corporation pays an annual dividend of $4.00 per share and has a dividend yield of 5.3%. IPG Photonics Corporation does not pay a dividend. NVE Corporation pays out 148.1% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.
Earnings and Valuation
This table compares NVE Corporation and IPG Photonics Corporation’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|NVE Corporation||$29.23 million||12.54||$18.97 million||$2.70||28.05|
|IPG Photonics Corporation||$1.20 billion||7.88||$515.19 million||$5.97||29.45|
IPG Photonics Corporation has higher revenue and earnings than NVE Corporation. NVE Corporation is trading at a lower price-to-earnings ratio than IPG Photonics Corporation, indicating that it is currently the more affordable of the two stocks.
Risk & Volatility
NVE Corporation has a beta of 1.21, indicating that its share price is 21% more volatile than the S&P 500. Comparatively, IPG Photonics Corporation has a beta of 1.7, indicating that its share price is 70% more volatile than the S&P 500.
This is a summary of current recommendations and price targets for NVE Corporation and IPG Photonics Corporation, 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|
NVE Corporation currently has a consensus target price of $79.00, indicating a potential upside of 4.30%. IPG Photonics Corporation has a consensus target price of $146.43, indicating a potential downside of 16.70%. Given NVE Corporation’s higher possible upside, analysts clearly believe NVE Corporation is more favorable than IPG Photonics Corporation.
This table compares NVE Corporation 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%|
Insider and Institutional Ownership
71.4% of NVE Corporation shares are held by institutional investors. Comparatively, 58.8% of IPG Photonics Corporation shares are held by institutional investors. 2.3% of NVE Corporation shares are held by company insiders. Comparatively, 33.8% of IPG Photonics Corporation shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.
IPG Photonics Corporation beats NVE Corporation on 11 of the 16 factors compared between the two stocks.
About NVE Corporation
NVE Corporation develops and sells devices that use spintronics, a nanotechnology that relies on electron spin to acquire, store and transmit information. The Company manufactures spintronic products, including sensors and couplers that are used to acquire and transmit data. The Company has also licensed its spintronic magnetoresistive random access memory technology (MRAM). Its parts are found in industrial, scientific, and medical applications. The Company’s products include sensors, couplers and MRAM products. Its sensor products detect the strength or gradient of magnetic fields and are used to determine position or speed. Its spintronic couplers combine a GMR sensor element and an IsoLoop integrated microscopic coil. MRAM uses spintronics to store data. It combines the speed of static random-access memory (SRAM), the density of dynamic random-access memory (DRAM) and the nonvolatility of flash memory. Data is stored in the spin of the electrons in thin metal alloy films.
About IPG Photonics Corporation
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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