Head to Head Analysis: Omron (OTCMKTS:OMRNY) and IPG Photonics (NASDAQ:IPGP)

Omron (OTCMKTS:OMRNY) and IPG Photonics (NASDAQ:IPGP) are both mid-cap technology companies, but which is the better investment? We will contrast the two businesses based on the strength of their risk, analyst recommendations, profitability, valuation, institutional ownership, earnings and dividends.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Omron	4.04%	3.68%	2.42%
IPG Photonics	3.65%	3.91%	3.42%

Insider & Institutional Ownership

1.1% of Omron shares are held by institutional investors. Comparatively, 93.8% of IPG Photonics shares are held by institutional investors. 37.5% of IPG Photonics shares are held 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.

Analyst Ratings

This is a summary of recent ratings for Omron and IPG Photonics, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Omron	0	2	0	0	2.00
IPG Photonics	1	2	7	0	2.60

IPG Photonics has a consensus price target of $131.33, indicating a potential upside of 82.24%. Given IPG Photonics’ stronger consensus rating and higher probable upside, analysts clearly believe IPG Photonics is more favorable than Omron.

Volatility & Risk

Omron has a beta of 1.29, indicating that its stock price is 29% more volatile than the S&P 500. Comparatively, IPG Photonics has a beta of 1, indicating that its stock price has a similar volatility profile to the S&P 500.

Earnings & Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Omron	$5.10 billion	1.26	$188.01 million	$1.05	29.71
IPG Photonics	$1.00 billion	3.05	$31.10 million	$0.94	76.67

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

Summary

IPG Photonics beats Omron on 9 of the 14 factors compared between the two stocks.

About Omron

Omron Corporation is a Japanese technology company that develops and manufactures automation, healthcare, and electronic products. Founded in 1933 by Kazuma Tateishi, the company began as an electronics manufacturer and has since expanded into a range of industrial and consumer markets. Omron’s industrial automation business provides equipment and systems such as sensors, controllers, robotics, and inspection devices for manufacturing and other operations. Its healthcare products include blood pressure monitors, thermometers, and respiratory-care devices, while its social systems business supplies technologies for areas such as transportation and energy management.

About IPG Photonics

IPG Photonics develops and manufactures fiber lasers, diode lasers, and optical amplifiers. Its products are used in materials processing applications such as cutting, welding, marking, and engraving, as well as in medical, communications, and other advanced applications. Founded in 1990 by physicist Valentin Gapontsev, the company helped establish fiber lasers as an alternative to other industrial laser technologies. IPG Photonics is headquartered in Oxford, Massachusetts, and serves customers around the world through its international operations and sales network.