Financial Survey: IPG Photonics (NASDAQ:IPGP) and LightPath Technologies (NASDAQ:LPTH)

IPG Photonics (NASDAQ:IPGPGet Rating) and LightPath Technologies (NASDAQ:LPTHGet Rating) are both computer and technology companies, but which is the better investment? We will compare the two companies based on the strength of their profitability, valuation, earnings, dividends, institutional ownership, risk and analyst recommendations.

Insider & Institutional Ownership

64.8% of IPG Photonics shares are owned by institutional investors. Comparatively, 37.4% of LightPath Technologies shares are owned by institutional investors. 32.9% of IPG Photonics shares are owned by insiders. Comparatively, 11.5% of LightPath Technologies shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for IPG Photonics and LightPath Technologies, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
IPG Photonics 2 3 3 0 2.13
LightPath Technologies 0 0 3 0 3.00

IPG Photonics currently has a consensus target price of $184.71, suggesting a potential upside of 89.86%. LightPath Technologies has a consensus target price of $3.73, suggesting a potential upside of 131.88%. Given LightPath Technologies’ stronger consensus rating and higher possible upside, analysts clearly believe LightPath Technologies is more favorable than IPG Photonics.

Profitability

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

Net Margins Return on Equity Return on Assets
IPG Photonics 19.06% 10.10% 8.84%
LightPath Technologies -12.90% -14.34% -9.22%

Valuation & Earnings

This table compares IPG Photonics and LightPath Technologies’ revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
IPG Photonics $1.46 billion 3.50 $278.42 million $5.16 18.85
LightPath Technologies $38.47 million 1.13 -$3.18 million ($0.18) -8.94

IPG Photonics has higher revenue and earnings than LightPath Technologies. LightPath Technologies is trading at a lower price-to-earnings ratio than IPG Photonics, indicating that it is currently the more affordable of the two stocks.

Risk and Volatility

IPG Photonics has a beta of 1.36, suggesting that its share price is 36% more volatile than the S&P 500. Comparatively, LightPath Technologies has a beta of 1.27, suggesting that its share price is 27% more volatile than the S&P 500.

Summary

IPG Photonics beats LightPath Technologies on 11 of the 13 factors compared between the two stocks.

IPG Photonics Company Profile (Get Rating)

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. The company's 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. It also provides erbium-doped fiber and Raman amplifiers, and integrated communications systems, which are deployed in broadband networks; and ytterbium and thulium specialty fiber amplifiers and broadband light sources. In addition, the company offers integrated laser systems; 2D compact flat sheet cutter systems and multi-axis systems; welding seam stepper and picker, a fiber laser welding tool; high precision laser systems; specialized fiber laser systems; and optical transceiver and transponder modules for interconnecting electronic equipment, including Ethernet switches, IP routers and DWDM/SONET/SDH optical transport modules within telecommunications, cable multi-system operators, and data center networking applications. It's lasers and amplifiers are also used in materials processing, communications, and medical and advanced 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.

LightPath Technologies Company Profile (Get Rating)

LightPath Technologies, Inc. designs, develops, manufactures, and distributes optical and infrared components. Its products include molded glass and assemblies, infrared molded lenses, diamond turned, conventional ground and polished ground lenses and assemblies, and collimator assemblies, which are used in applications involving light detection and ranging technology. The firm supports a range of customers in the field of industrial, laser, defense, medical, telecommunications, and instrumentation. The company was founded on June 15, 1992 and is headquartered in Orlando, FL.

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