Critical Survey: IPG Photonics (NASDAQ:IPGP) vs. Lasertec (OTCMKTS:LSRCF)

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

Insider & Institutional Ownership

59.1% of IPG Photonics shares are owned by institutional investors. 33.5% of IPG Photonics 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 recommendations for Lasertec and IPG Photonics, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Lasertec	0	0	0	0	N/A
IPG Photonics	0	2	3	1	2.83

IPG Photonics has a consensus target price of $134.00, indicating a potential upside of 25.88%. Given IPG Photonics’ higher probable upside, analysts clearly believe IPG Photonics is more favorable than Lasertec.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Lasertec	N/A	N/A	N/A
IPG Photonics	7.73%	4.36%	3.82%

Earnings and Valuation

This table compares Lasertec and IPG Photonics’ revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Lasertec	N/A	N/A	N/A	N/A	N/A
IPG Photonics	$1.43 billion	3.53	$109.91 million	$2.13	49.98

IPG Photonics has higher revenue and earnings than Lasertec.

Summary

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

About Lasertec

Lasertec Corporation engages in development, manufacture, sale, and service of semiconductor-related and flat panel display (FPD)-related systems, and laser microscopes in Japan and internationally. It offers inspection and measurement systems for mask blanks, photomasks, and wafers; FPD photomask inspection systems; laser microscopes, which are used in the areas as semiconductor materials, transparent films, coating materials, inorganic and organic materials, biological samples, metal parts, and plastic components; and lithium-ion batteries. The company was formerly known as NJS Corporation and changed its name to Lasertec Corporation in 1986. Lasertec Corporation was founded in 1960 and is headquartered in Yokohama, Japan.

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. 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 data center, optical, and communications network of oil and gas utilities. Its laser solutions 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.