Head-To-Head Contrast: AVX (AVX) vs. IPG Photonics (NASDAQ:IPGP)

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

Dividends

AVX pays an annual dividend of $0.46 per share and has a dividend yield of 2.6%. IPG Photonics does not pay a dividend. AVX pays out 920.2% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. IPG Photonics has raised its dividend for 5 consecutive years.

Valuation and Earnings

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

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
AVX $1.31 billion 2.27 $125.78 million $0.05 354.27
IPG Photonics $1.01 billion 13.15 $260.75 million $6.79 36.34

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

Profitability

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

Net Margins Return on Equity Return on Assets
AVX 0.48% 6.07% 5.44%
IPG Photonics 27.85% 21.17% 18.56%

Insider & Institutional Ownership

24.6% of AVX shares are owned by institutional investors. Comparatively, 56.5% of IPG Photonics shares are owned by institutional investors. 0.5% of AVX shares are owned by company insiders. Comparatively, 33.8% 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 will outperform the market over the long term.

Volatility & Risk

AVX has a beta of 0.83, indicating that its share price is 17% less volatile than the S&P 500. Comparatively, IPG Photonics has a beta of 1.88, indicating that its share price is 88% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current ratings and target prices for AVX and IPG Photonics, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
AVX 0 1 0 0 2.00
IPG Photonics 0 3 6 0 2.67

AVX currently has a consensus price target of $17.00, suggesting a potential downside of 4.01%. IPG Photonics has a consensus price target of $191.44, suggesting a potential downside of 22.41%. Given AVX’s higher possible upside, equities analysts plainly believe AVX is more favorable than IPG Photonics.

Summary

IPG Photonics beats AVX on 14 of the 17 factors compared between the two stocks.

AVX Company Profile

AVX Corporation (AVX) is a manufacturer and supplier and reseller of a line of passive electronic components, interconnect devices and related products. AVX operates in three segments: Passive Components, Kyocera Electronic Devices (KED Resale) and Interconnect. The Passive Components segment consists of surface mount and leaded ceramic capacitors, surface mount and leaded tantalum capacitors, surface mount and leaded film capacitors, thick and thin film packages of multiple passive integrated components, thermistors, inductors and resistive products. The KED Resale segment consists of ceramic capacitors, frequency control devices, surface acoustic wave (SAW) devices, sensor products, radio frequency (RF) modules, actuators, acoustic devices and connectors produced by Kyocera and resold by AVX. The Interconnect segment consists primarily of AVX Interconnect automotive, telecom and memory connectors manufactured by AVX Interconnect or purchased from other manufacturers for resale.

IPG Photonics Company Profile

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.

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