Contrasting IPG Photonics (NASDAQ:IPGP) & Applied Energetics (OTCMKTS:AERG)

IPG Photonics (NASDAQ:IPGP) and Applied Energetics (OTCMKTS:AERG) are both computer and technology companies, but which is the better investment? We will contrast the two businesses based on the strength of their earnings, valuation, dividends, profitability, risk, analyst recommendations and institutional ownership.

Institutional and Insider Ownership

93.8% of IPG Photonics shares are held by institutional investors. Comparatively, 0.5% of Applied Energetics shares are held by institutional investors. 39.5% of IPG Photonics shares are held by company insiders. Comparatively, 17.2% of Applied Energetics shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Risk and Volatility

IPG Photonics has a beta of 0.9, meaning that its stock price is 10% less volatile than the S&P 500. Comparatively, Applied Energetics has a beta of 0.93, meaning that its stock price is 7% less volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
IPG Photonics	-21.18%	2.56%	2.28%
Applied Energetics	-386.66%	-413.63%	-239.35%

Valuation & Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
IPG Photonics	$977.13 million	2.90	-$181.53 million	($4.61)	-14.48
Applied Energetics	$2.43 million	178.87	-$9.18 million	($0.03)	-66.30

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

Analyst Ratings

This is a summary of recent ratings and target prices for IPG Photonics and Applied Energetics, as reported by MarketBeat.

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

IPG Photonics currently has a consensus price target of $69.50, indicating a potential upside of 4.14%. Given IPG Photonics’ stronger consensus rating and higher possible upside, equities analysts plainly believe IPG Photonics is more favorable than Applied Energetics.

Summary

IPG Photonics beats Applied Energetics on 11 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 Applied Energetics

Applied Energetics, Inc. engages in the provision of advanced optical technologies and ultrashort pulse directed energy solutions utilizing dual-use laser and optical technologies to defense, national security, industrial, biomedical, and scientific customers worldwide. It develops and holds various intellectual property rights such as laser guided energy and laser induced plasma channel technology for used in high-tech directed energy systems. The company was founded in 1990 and is headquartered in Tucson, Arizona.