IPG Photonics (NASDAQ:IPGP) and Sanmina (NASDAQ:SANM) are both computer and technology companies, but which is the superior investment? We will contrast the two companies based on the strength of their valuation, earnings, analyst recommendations, dividends, risk, profitability and institutional ownership.
Analyst Ratings
This is a summary of recent recommendations for IPG Photonics and Sanmina, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
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IPG Photonics | 0 | 4 | 5 | 0 | 2.56 |
Sanmina | 0 | 3 | 1 | 0 | 2.25 |
IPG Photonics currently has a consensus price target of $230.9444, suggesting a potential upside of 1.16%. Sanmina has a consensus price target of $39.50, suggesting a potential upside of 8.07%. Given Sanmina's higher probable upside, analysts plainly believe Sanmina is more favorable than IPG Photonics.
Profitability
This table compares IPG Photonics and Sanmina's net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
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IPG Photonics | 9.04% | 7.76% | 6.85% |
Sanmina | 2.01% | 11.51% | 4.61% |
Earnings & Valuation
This table compares IPG Photonics and Sanmina's revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
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IPG Photonics | $1.31 billion | 9.15 | $180.23 million | $4.36 | 51.55 |
Sanmina | $6.96 billion | 0.34 | $139.71 million | $2.68 | 13.64 |
IPG Photonics has higher earnings, but lower revenue than Sanmina. Sanmina is trading at a lower price-to-earnings ratio than IPG Photonics, indicating that it is currently the more affordable of the two stocks.
Institutional & Insider Ownership
63.4% of IPG Photonics shares are owned by institutional investors. Comparatively, 94.6% of Sanmina shares are owned by institutional investors. 34.0% of IPG Photonics shares are owned by company insiders. Comparatively, 3.7% of Sanmina shares are owned 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.
Volatility & Risk
IPG Photonics has a beta of 1.48, suggesting that its share price is 48% more volatile than the S&P 500. Comparatively, Sanmina has a beta of 1.14, suggesting that its share price is 14% more volatile than the S&P 500.
Summary
IPG Photonics beats Sanmina on 10 of the 14 factors compared between the two stocks.