Head-To-Head Survey: IPG Photonics (NASDAQ:IPGP) and IRIDEX (NASDAQ:IRIX)

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

Earnings and Valuation

This table compares IRIDEX and IPG Photonics”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
IRIDEX	$48.80 million	0.44	-$8.91 million	($0.43)	-3.00
IPG Photonics	$977.13 million	3.24	-$181.53 million	($4.61)	-16.15

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

Risk & Volatility

IRIDEX has a beta of 0.57, indicating that its stock price is 43% less volatile than the S&P 500. Comparatively, IPG Photonics has a beta of 0.9, indicating that its stock price is 10% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent ratings and price targets for IRIDEX and IPG Photonics, as provided by MarketBeat.

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

IPG Photonics has a consensus price target of $69.50, indicating a potential downside of 6.64%. Given IPG Photonics’ stronger consensus rating and higher possible upside, analysts clearly believe IPG Photonics is more favorable than IRIDEX.

Insider & Institutional Ownership

20.1% of IRIDEX shares are owned by institutional investors. Comparatively, 93.8% of IPG Photonics shares are owned by institutional investors. 7.4% of IRIDEX shares are owned by company insiders. Comparatively, 39.5% of IPG Photonics shares are owned 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.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
IRIDEX	-14.61%	-290.57%	-22.86%
IPG Photonics	-21.18%	2.56%	2.28%

Summary

IPG Photonics beats IRIDEX on 11 of the 15 factors compared between the two stocks.

About IRIDEX

IRIDEX Corporation, an ophthalmic medical technology company, provides therapeutic based laser systems, delivery devices, and consumable instrumentation to treat sight-threatening eye diseases in ophthalmology. It offers laser consoles, such as Cyclo G6 laser system for use in the treatment of glaucoma; IQ 532 and IQ 577 laser systems, which are used for the treatment of retinal disorders; and OcuLight TX, OcuLight SL, OcuLight SLx, OcuLight GL, and OcuLight GLx laser photocoagulation systems that are used to treat proliferative diabetic retinopathy, macular holes, retinal tears, and detachments. The company also provides delivery devices, including TxCell scanning laser delivery system that allows the physician to perform multi-spot pattern scanning; slit lamp adapter, which allows the physician to utilize a standard slit lamp in diagnosis and treatment procedures; and laser indirect ophthalmoscope for use in procedures to treat peripheral retinal disorders. It offers MicroPulse P3 Probe, which is used with its Cylco G6 laser system to perform MicroPulse transscleral laser therapy; G-Probe, which is used in procedures to treat uncontrolled glaucoma; G-Probe and G-Probe Illuminate, which are used in procedures to treat refractory glaucoma; and EndoProbe family of products for use in vitrectomy procedures. The company serves ophthalmologists, research and teaching hospitals, government installations, surgical centers, hospitals, veterinary practices, and office clinics. It markets its products through direct and independent sales force in the United States, as well as through independent distributors internationally. The company was formerly known as IRIS Medical Instruments, Inc. and changed its name to IRIDEX Corporation in November 1995. IRIDEX Corporation was incorporated in 1989 and is headquartered in Mountain View, 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.