IPG Photonics (NASDAQ:IPGP – Get Free Report) and NVIDIA (NASDAQ:NVDA – Get Free Report) are both computer and technology companies, but which is the superior stock? We will compare the two businesses based on the strength of their valuation, institutional ownership, profitability, analyst recommendations, earnings, dividends and risk.
Analyst Recommendations
This is a summary of current ratings and price targets for IPG Photonics and NVIDIA, as provided by MarketBeat.
Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
IPG Photonics | 1 | 2 | 2 | 1 | 2.50 |
NVIDIA | 0 | 4 | 38 | 2 | 2.95 |
IPG Photonics presently has a consensus target price of $93.50, indicating a potential upside of 24.57%. NVIDIA has a consensus target price of $152.40, indicating a potential upside of 3.85%. Given IPG Photonics’ higher probable upside, equities research analysts plainly believe IPG Photonics is more favorable than NVIDIA.
Volatility and Risk
Earnings & Valuation
This table compares IPG Photonics and NVIDIA”s revenue, earnings per share and valuation.
Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
IPG Photonics | $1.29 billion | 2.52 | $218.88 million | ($3.47) | -21.63 |
NVIDIA | $60.92 billion | 59.09 | $29.76 billion | $2.13 | 68.84 |
NVIDIA has higher revenue and earnings than IPG Photonics. IPG Photonics is trading at a lower price-to-earnings ratio than NVIDIA, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares IPG Photonics and NVIDIA’s net margins, return on equity and return on assets.
Net Margins | Return on Equity | Return on Assets | |
IPG Photonics | -14.20% | 4.32% | 3.89% |
NVIDIA | 55.04% | 113.50% | 73.83% |
Insider and Institutional Ownership
93.8% of IPG Photonics shares are owned by institutional investors. Comparatively, 65.3% of NVIDIA shares are owned by institutional investors. 38.0% of IPG Photonics shares are owned by company insiders. Comparatively, 4.2% of NVIDIA shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.
Summary
NVIDIA beats IPG Photonics on 12 of the 15 factors compared between the two stocks.
About IPG Photonics
IPG Photonics Corporation develops, manufactures, and sells various high-performance fiber lasers, fiber amplifiers, and diode lasers used in various applications primarily in materials processing worldwide. Its laser products include hybrid fiber-solid state lasers with green and ultraviolet wavelengths; 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; and high-power optical fiber delivery cables, fiber couplers, beam switches, chillers, scanners, and other accessories. The company also offers integrated laser systems; LightWELD, a handheld laser welding system; 2D compact flat sheet cutter systems and multi-axis systems for fine welding, cutting, and drilling; welding seam stepper and picker, a fiber laser welding tool; high precision laser systems; specialized fiber laser systems for material processing applications; robotic and multi-axis workstations for welding, cutting and cladding, flatbed cutting systems, and diode markers; and laser and non-laser robotic welding and automation solutions. It serves materials processing, communications, medical procedures, and advanced applications and communications markets. 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 Marlborough, Massachusetts.
About NVIDIA
NVIDIA Corporation provides graphics and compute and networking solutions in the United States, Taiwan, China, Hong Kong, and internationally. The Graphics segment offers GeForce GPUs for gaming and PCs, the GeForce NOW game streaming service and related infrastructure, and solutions for gaming platforms; Quadro/NVIDIA RTX GPUs for enterprise workstation graphics; virtual GPU or vGPU software for cloud-based visual and virtual computing; automotive platforms for infotainment systems; and Omniverse software for building and operating metaverse and 3D internet applications. The Compute & Networking segment comprises Data Center computing platforms and end-to-end networking platforms, including Quantum for InfiniBand and Spectrum for Ethernet; NVIDIA DRIVE automated-driving platform and automotive development agreements; Jetson robotics and other embedded platforms; NVIDIA AI Enterprise and other software; and DGX Cloud software and services. The company's products are used in gaming, professional visualization, data center, and automotive markets. It sells its products to original equipment manufacturers, original device manufacturers, system integrators and distributors, independent software vendors, cloud service providers, consumer internet companies, add-in board manufacturers, distributors, automotive manufacturers and tier-1 automotive suppliers, and other ecosystem participants. NVIDIA Corporation was incorporated in 1993 and is headquartered in Santa Clara, California.
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