Head to Head Analysis: IPG Photonics (IPGP) vs. Aquantia (AQ)

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

Analyst Recommendations

This is a summary of current recommendations for IPG Photonics and Aquantia, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
IPG Photonics 0 1 6 0 2.86
Aquantia 0 0 5 0 3.00

IPG Photonics currently has a consensus price target of $274.00, indicating a potential upside of 13.62%. Aquantia has a consensus price target of $14.80, indicating a potential upside of 18.40%. Given Aquantia’s stronger consensus rating and higher possible upside, analysts clearly believe Aquantia is more favorable than IPG Photonics.

Profitability

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

Net Margins Return on Equity Return on Assets
IPG Photonics 25.56% 21.59% 18.73%
Aquantia N/A N/A N/A

Institutional & Insider Ownership

57.8% of IPG Photonics shares are held by institutional investors. Comparatively, 22.8% of Aquantia shares are held by institutional investors. 33.4% of IPG Photonics shares are held by company insiders. Comparatively, 24.1% of Aquantia shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Valuation & Earnings

This table compares IPG Photonics and Aquantia’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
IPG Photonics $1.41 billion 9.19 $347.61 million $7.26 33.22
Aquantia $103.37 million 4.06 -$5.41 million ($0.48) -26.04

IPG Photonics has higher revenue and earnings than Aquantia. Aquantia 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

IPG Photonics beats Aquantia on 11 of the 13 factors compared between the two stocks.

IPG Photonics Company Profile

IPG Photonics Corporation develops and manufactures a range of high-performance fiber lasers, fiber amplifiers, and diode lasers used in various applications primarily in materials processing worldwide. The company's laser products include low, medium, and high power lasers; 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; laser diode chips and packaged laser diodes; 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, such as fiber to the home, fiber to the curb, passive optical networks, and dense wavelength division multiplexing (DWDM) networks; ytterbium and thulium specialty fiber amplifiers and broadband light sources; and single-frequency, linearly polarized, and polarization-maintaining versions of its amplifier products. In addition, the company offers interconnect, coarse wavelength division multiplexing, DWDM, and tunable-based pluggable interfaces to serve optical transmission needs; integrated laser systems; 2D flat sheet cutter systems and multi-axis systems; welding seam stepper and picker, a fiber laser welding tool; and specialized fiber laser systems for material processing applications. Its lasers and amplifiers are also used in materials processing, advanced communications, and medical 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.

Aquantia Company Profile

Aquantia Corp., together with its subsidiaries, designs, develops, and markets advanced high-speed communication integrated circuits for Ethernet connectivity in the data center, enterprise infrastructure, and access markets worldwide. Its products include corporate and cloud data center products; enterprise infrastructure products; and access products, such as client connectivity and carrier access. The company sells its products to integrated circuit suppliers, original equipment manufacturers, and original design manufacturers through direct sales. Aquantia Corp. was founded in 2004 and is headquartered in San Jose, California.

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