Head to Head Contrast: IPG Photonics (NASDAQ:IPGP) and Navitas Semiconductor (NASDAQ:NVTS)

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

Institutional and Insider Ownership

46.1% of Navitas Semiconductor shares are owned by institutional investors. Comparatively, 93.8% of IPG Photonics shares are owned by institutional investors. 31.8% of Navitas Semiconductor shares are owned by insiders. Comparatively, 38.0% of IPG Photonics shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Analyst Recommendations

This is a summary of current recommendations and price targets for Navitas Semiconductor and IPG Photonics, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Navitas Semiconductor	0	2	5	0	2.71
IPG Photonics	1	3	1	1	2.33

Navitas Semiconductor currently has a consensus price target of $4.11, suggesting a potential upside of 64.29%. IPG Photonics has a consensus price target of $87.75, suggesting a potential upside of 40.96%. Given Navitas Semiconductor’s stronger consensus rating and higher possible upside, equities analysts clearly believe Navitas Semiconductor is more favorable than IPG Photonics.

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Navitas Semiconductor	$83.30 million	5.61	-$145.43 million	($0.45)	-5.56
IPG Photonics	$977.13 million	2.71	-$181.53 million	($4.18)	-14.89

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Navitas Semiconductor	-84.61%	-23.64%	-20.18%
IPG Photonics	-18.58%	2.98%	2.67%

Volatility and Risk

Navitas Semiconductor has a beta of 2.23, suggesting that its stock price is 123% more volatile than the S&P 500. Comparatively, IPG Photonics has a beta of 1.05, suggesting that its stock price is 5% more volatile than the S&P 500.

Summary

Navitas Semiconductor beats IPG Photonics on 8 of the 15 factors compared between the two stocks.

About Navitas Semiconductor

Navitas Semiconductor Corporation designs, develops, and markets gallium nitride power integrated circuits, silicon carbide, associated high-speed silicon system controllers, and digital isolators used in power conversion and charging. The company’s products are used in mobile, consumer, data center, solar, electric vehicle, industrial motor drive, smart grid, and transportation applications. It operates in the United States, Europe, China, rest of Asia, and internationally. The company was founded in 2013 and is based in Torrance, California.

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.