Analyzing IPG Photonics (NASDAQ:IPGP) & Ameri (NASDAQ:AMRH)

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

Analyst Recommendations

This is a breakdown of current ratings and target prices for IPG Photonics and Ameri, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
IPG Photonics 0 8 4 0 2.33
Ameri 0 0 0 0 N/A

IPG Photonics currently has a consensus target price of $160.98, indicating a potential upside of 3.71%. Given IPG Photonics’ higher possible upside, equities analysts clearly believe IPG Photonics is more favorable than Ameri.

Valuation and Earnings

This table compares IPG Photonics and Ameri’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
IPG Photonics $1.31 billion 6.26 $180.23 million $4.36 35.60
Ameri $39.92 million 0.13 -$5.60 million N/A N/A

IPG Photonics has higher revenue and earnings than Ameri.

Profitability

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

Net Margins Return on Equity Return on Assets
IPG Photonics 12.93% 8.57% 7.49%
Ameri -14.24% -49.22% -20.43%

Volatility & Risk

IPG Photonics has a beta of 1.73, indicating that its share price is 73% more volatile than the S&P 500. Comparatively, Ameri has a beta of 1.19, indicating that its share price is 19% more volatile than the S&P 500.

Insider and Institutional Ownership

65.2% of IPG Photonics shares are owned by institutional investors. Comparatively, 0.5% of Ameri shares are owned by institutional investors. 34.0% of IPG Photonics shares are owned by insiders. Comparatively, 12.2% of Ameri shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Summary

IPG Photonics beats Ameri on 11 of the 11 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 compact 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.

Ameri Company Profile

Ameri Holdings, Inc. specializes in delivering SAP cloud, digital and enterprise services to clients worldwide. Its services center around SAP and include technology consulting, business intelligence, cloud services, application development/integration and maintenance, implementation services, infrastructure services, and independent validation services, all of which can be delivered as a set of managed services or on an on-demand service basis, or a combination of both. The company was founded by Srinidhi Devanur in February 1994 and is headquartered in Suwanee, GA.

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