IPG Photonics (NASDAQ:IPGP) & Ambarella (NASDAQ:AMBA) Head to Head Survey

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Ambarella	-62.38%	-23.52%	-19.93%
IPG Photonics	-18.58%	2.98%	2.67%

Analyst Recommendations

This is a summary of current ratings and recommmendations for Ambarella and IPG Photonics, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Ambarella	0	4	8	0	2.67
IPG Photonics	1	3	2	1	2.43

Ambarella presently has a consensus price target of $86.67, indicating a potential upside of 98.78%. IPG Photonics has a consensus price target of $85.40, indicating a potential upside of 64.77%. Given Ambarella’s stronger consensus rating and higher probable upside, research analysts clearly believe Ambarella is more favorable than IPG Photonics.

Volatility & Risk

Ambarella has a beta of 1.86, meaning that its share price is 86% more volatile than the S&P 500. Comparatively, IPG Photonics has a beta of 0.97, meaning that its share price is 3% less volatile than the S&P 500.

Institutional and Insider Ownership

82.1% of Ambarella shares are owned by institutional investors. Comparatively, 93.8% of IPG Photonics shares are owned by institutional investors. 5.7% of Ambarella shares are owned by company insiders. Comparatively, 38.0% of IPG Photonics shares are owned by company 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.

Valuation & Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Ambarella	$284.87 million	6.50	-$169.42 million	($2.84)	-15.35
IPG Photonics	$977.13 million	2.26	-$181.53 million	($4.18)	-12.40

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

Summary

Ambarella beats IPG Photonics on 8 of the 15 factors compared between the two stocks.

About Ambarella

Ambarella, Inc. develops semiconductor solutions that enable high-definition (HD) and ultra HD compression, image signal processing, and artificial intelligence processing worldwide. The company's system-on-a-chip designs integrated HD video processing, image processing, artificial intelligence computer vision algorithms, audio processing, and system functions onto a single chip for delivering video and image quality, differentiated functionality, and low power consumption. Its solutions are used in automotive cameras, such as automotive video recorders, electronic mirrors, front advanced driver assistance system camera, cabin monitoring system and driver monitoring system camera, and central domain controllers for autonomous vehicle; enterprise and public class, and home security camera; and robotics and industrial application, including identification/authentication cameras, robotic products, and sensing cameras, as well as cameras for the enterprise, home, public spaces, and consumer leisure comprising wearable body cameras, sports action cameras, social media cameras, drones for capturing aerial video or photographs, video conferencing, and virtual reality applications. The company sells its solutions to original design manufacturers and original equipment manufacturers through its direct sales force and distributors. Ambarella, Inc. was incorporated in 2004 and is headquartered in Santa Clara, California.

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.