Financial Survey: IPG Photonics (NASDAQ:IPGP) vs. Smartkem (NASDAQ:SMTK)

Smartkem (NASDAQ:SMTK) and IPG Photonics (NASDAQ:IPGP) are both computer and technology companies, but which is the superior stock? We will compare the two companies based on the strength of their risk, earnings, analyst recommendations, institutional ownership, valuation, dividends and profitability.

Valuation & Earnings

This table compares Smartkem and IPG Photonics”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Smartkem	$40,000.00	140.80	-$8.50 million	N/A	N/A
IPG Photonics	$977.13 million	2.75	-$181.53 million	($4.18)	-15.10

Smartkem has higher earnings, but lower revenue than IPG Photonics.

Insider and Institutional Ownership

93.8% of IPG Photonics shares are owned by institutional investors. 13.8% of Smartkem shares are owned by insiders. Comparatively, 38.0% of IPG Photonics shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Analyst Ratings

This is a summary of current ratings and price targets for Smartkem and IPG Photonics, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Smartkem	0	0	0	0	0.00
IPG Photonics	1	3	2	1	2.43

IPG Photonics has a consensus target price of $85.40, indicating a potential upside of 35.32%. Given IPG Photonics’ stronger consensus rating and higher probable upside, analysts clearly believe IPG Photonics is more favorable than Smartkem.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Smartkem	N/A	-167.89%	-111.60%
IPG Photonics	-18.58%	2.98%	2.67%

Summary

IPG Photonics beats Smartkem on 9 of the 12 factors compared between the two stocks.

About Smartkem

SmartKem, Inc. engages in the development of materials and processes used to make organic thin-film transistors for the manufacture of flexible electronic. It focuses on Truflex semiconductor technology that deposits organic ink on a substrate. The company was founded on September 21, 2018 and is headquartered in Blackley, the United Kingdom.

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.