IPG Photonics (NASDAQ:IPGP) and Plexus (NASDAQ:PLXS) are both computer and technology companies, but which is the better investment? We will compare the two businesses based on the strength of their risk, earnings, analyst recommendations, institutional ownership, profitability, valuation and dividends.
Earnings & Valuation
This table compares IPG Photonics and Plexus' gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
---|
IPG Photonics | $1.31 billion | 9.08 | $180.23 million | $4.36 | 51.13 |
Plexus | $3.39 billion | 0.77 | $117.48 million | $4.08 | 22.21 |
IPG Photonics has higher earnings, but lower revenue than Plexus. Plexus is trading at a lower price-to-earnings ratio than IPG Photonics, indicating that it is currently the more affordable of the two stocks.
Volatility and Risk
IPG Photonics has a beta of 1.48, suggesting that its share price is 48% more volatile than the S&P 500. Comparatively, Plexus has a beta of 1.18, suggesting that its share price is 18% more volatile than the S&P 500.
Analyst Ratings
This is a summary of current ratings and target prices for IPG Photonics and Plexus, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
---|
IPG Photonics | 0 | 4 | 5 | 0 | 2.56 |
Plexus | 0 | 3 | 2 | 0 | 2.40 |
IPG Photonics presently has a consensus target price of $230.9444, suggesting a potential upside of 2.80%. Plexus has a consensus target price of $86.40, suggesting a potential downside of 4.76%. Given IPG Photonics' stronger consensus rating and higher probable upside, equities research analysts plainly believe IPG Photonics is more favorable than Plexus.
Insider & Institutional Ownership
63.4% of IPG Photonics shares are held by institutional investors. Comparatively, 94.2% of Plexus shares are held by institutional investors. 34.0% of IPG Photonics shares are held by company insiders. Comparatively, 2.4% of Plexus shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.
Profitability
This table compares IPG Photonics and Plexus' net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
---|
IPG Photonics | 9.04% | 7.76% | 6.85% |
Plexus | 3.47% | 13.10% | 5.55% |
Summary
IPG Photonics beats Plexus on 11 of the 14 factors compared between the two stocks.