IPG Photonics (NASDAQ:IPGP) vs. Syntec Optics (NASDAQ:OPTX) Critical Review

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

Valuation & Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Syntec Optics	$28.08 million	14.06	-$1.79 million	($0.06)	-163.33
IPG Photonics	$1.00 billion	3.54	$31.10 million	$0.65	128.62

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Syntec Optics	-8.26%	-16.50%	-8.68%
IPG Photonics	2.58%	3.39%	2.98%

Volatility & Risk

Syntec Optics has a beta of -0.76, indicating that its share price is 176% less volatile than the S&P 500. Comparatively, IPG Photonics has a beta of 0.97, indicating that its share price is 3% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current recommendations for Syntec Optics and IPG Photonics, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Syntec Optics	1	0	0	0	1.00
IPG Photonics	1	2	5	0	2.50

IPG Photonics has a consensus target price of $142.60, indicating a potential upside of 70.57%. Given IPG Photonics’ stronger consensus rating and higher probable upside, analysts plainly believe IPG Photonics is more favorable than Syntec Optics.

Institutional and Insider Ownership

93.8% of IPG Photonics shares are held by institutional investors. 0.8% of Syntec Optics shares are held by company insiders. Comparatively, 37.5% of IPG Photonics shares are held by company 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 Syntec Optics on 13 of the 14 factors compared between the two stocks.

About Syntec Optics

Syntec Optics Holdings, Inc. manufactures and supplies integrated optics for biomedical, defense and military, consumer, and other applications. It offers camera modules; tool design, design for manufacturing, optical and opto-mechanical design, and moldflow analysis; SPDT optics, such as freedom optics, microlens arrays, spheres and aspheres, diffractives, SPDT materials, and optical tooling; replicative molding, that includes polymer and glass molding, and molded production materials; thin film coating and coating curve materials; and precision machining and precision machining materials. The company also provides clean room assembly, such as opto mechanical, opto electronic, and integrated photonics; infrared optics, microlens arrays, software development, and optical metrology, and catalog optics services. In addition, it offers driverless cars, integrated photonics, robotics, sensors, VR and AR, machine vision, facial imagining, heads up display, finger print scanners, and laser scanners technology for consumers; night vision goggles, missile laser guides, biometrics, infrared and thermal imaging, ordnance optics, head mounted displays, 2D and 3D scanners, humvee lighting , laser targeting, protective domes and windows, and lidar technologies for defense and miliary; and medical diagnostic, microfluidics, surgical components and systems, and medical sensing technology for medical sectors. The company was founded in 1981 and is based in Rochester, New York.

About IPG Photonics

IPG Photonics Corporation develops, manufactures, and sells various high-performance fiber lasers, fiber amplifiers, and diode lasers used in various applications primarily in materials processing worldwide. Its laser products include hybrid fiber-solid state lasers with green and ultraviolet wavelengths; 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; and high-power optical fiber delivery cables, fiber couplers, beam switches, chillers, scanners, and other accessories. The company also offers integrated laser systems; LightWELD, a handheld laser welding system; 2D compact flat sheet cutter systems and multi-axis systems for fine welding, cutting, and drilling; welding seam stepper and picker, a fiber laser welding tool; high precision laser systems; specialized fiber laser systems for material processing applications; robotic and multi-axis workstations for welding, cutting and cladding, flatbed cutting systems, and diode markers; and laser and non-laser robotic welding and automation solutions. It serves materials processing, communications, medical procedures, and advanced applications and communications markets. 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 Marlborough, Massachusetts.