IPG Photonics Corporation (NASDAQ: IPGP) and Kemet Corporation (NYSE:KEM) are both computer and technology companies, but which is the better stock? We will contrast the two businesses based on the strength of their earnings, risk, valuation, institutional ownership, profitability, analyst recommendations and dividends.
Insider and Institutional Ownership
59.1% of IPG Photonics Corporation shares are owned by institutional investors. Comparatively, 67.3% of Kemet Corporation shares are owned by institutional investors. 33.8% of IPG Photonics Corporation shares are owned by company insiders. Comparatively, 3.9% of Kemet Corporation shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.
Volatility and Risk
IPG Photonics Corporation has a beta of 1.68, meaning that its share price is 68% more volatile than the S&P 500. Comparatively, Kemet Corporation has a beta of 3.56, meaning that its share price is 256% more volatile than the S&P 500.
Earnings & Valuation
This table compares IPG Photonics Corporation and Kemet Corporation’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|IPG Photonics Corporation||$1.20 billion||8.65||$515.19 million||$5.97||32.30|
|Kemet Corporation||$846.86 million||1.35||$110.10 million||$4.88||4.91|
IPG Photonics Corporation has higher revenue and earnings than Kemet Corporation. Kemet Corporation is trading at a lower price-to-earnings ratio than IPG Photonics Corporation, indicating that it is currently the more affordable of the two stocks.
This is a summary of current ratings for IPG Photonics Corporation and Kemet Corporation, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|IPG Photonics Corporation||0||3||5||0||2.63|
IPG Photonics Corporation currently has a consensus target price of $150.00, suggesting a potential downside of 22.21%. Kemet Corporation has a consensus target price of $18.13, suggesting a potential downside of 24.29%. Given IPG Photonics Corporation’s stronger consensus rating and higher probable upside, research analysts clearly believe IPG Photonics Corporation is more favorable than Kemet Corporation.
This table compares IPG Photonics Corporation and Kemet Corporation’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|IPG Photonics Corporation||26.84%||19.75%||17.31%|
IPG Photonics Corporation beats Kemet Corporation on 9 of the 14 factors compared between the two stocks.
About IPG Photonics Corporation
IPG Photonics Corporation is a developer and manufacturer of a line of fiber lasers, fiber amplifiers, diode lasers, laser systems and optical accessories that are used for various applications. The Company offers a line of lasers and amplifiers, which are used in materials processing, communications and medical applications. The Company sells its products globally to original equipment manufacturers (OEMs), system integrators and end users. The Company’s manufacturing facilities are located in the United States, Germany and Russia. The Company offers laser-based systems for certain markets and applications. Its products are designed to be used as general-purpose energy or light sources. Its product line includes High-Power Ytterbium CW (1,000-100,000 Watts), Mid-Power Ytterbium CW (100-999 Watts), Pulsed Ytterbium (0.1 to 200 Watts), Pulsed and CW, Quasi-CW Ytterbium (100-4,500 Watts), Erbium Amplifiers and Transceivers.
About Kemet Corporation
KEMET Corporation (KEMET) is a manufacturer of passive electronic components. The Company operates in two segments: Solid Capacitors, and Film and Electrolytic. The Solid Capacitors segment primarily produces tantalum, aluminum, polymer and ceramic capacitors. Solid Capacitors also produces tantalum powder used in the production of tantalum capacitors. The Film and Electrolytic Business Group produces film, paper and wet aluminum electrolytic capacitors. It also designs and produces EMI Filters. The Company’s product offerings include surface mount, which are attached directly to the circuit board; leaded capacitors, which are attached to the circuit board using lead wires, and chassis-mount and other pin-through-hole board-mount capacitors, which utilize attachment methods, such as screw terminal and snap-in. The Company sells its products to a range of original equipment manufacturers (OEMs) and electronics manufacturing services (EMS) providers.
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