Omron (OTCMKTS:OMRNY) & IPG Photonics (NASDAQ:IPGP) Financial Survey

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

Analyst Recommendations

This is a breakdown of current ratings for IPG Photonics and Omron, as provided by MarketBeat.

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

IPG Photonics presently has a consensus target price of $131.67, indicating a potential upside of 101.60%. Given IPG Photonics’ stronger consensus rating and higher probable upside, equities research analysts plainly believe IPG Photonics is more favorable than Omron.

Earnings & Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
IPG Photonics	$1.11 billion	2.51	$31.10 million	$0.94	69.48
Omron	$5.10 billion	1.20	$188.01 million	$1.05	28.20

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.

Volatility and Risk

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

Institutional & Insider Ownership

93.8% of IPG Photonics shares are owned by institutional investors. Comparatively, 1.1% of Omron shares are owned by institutional investors. 37.5% of IPG Photonics shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Profitability

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

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

Summary

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

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.

About Omron

OMRON Corporation engages in industrial automation, device and module solutions, social systems, and healthcare businesses worldwide. The Industrial Automation Business offers sensors, switches, safety and control components, relays, motion and drives, robotics, energy conservation, power supplies, and automation system products. It also offers environmental mobility, digital devices, food and commodity, logistic and warehouse automation, medical, robotic, panel, vision, software, and traceability related solutions. The Social Systems, Solutions and Service Business provides energy, public transport, traffic safety, network protection, payment, infrastructure monitoring, management service, and DX solutions, as well as offers remote surveillance/monitoring, automation/robotics, software development, engineering/maintenance, and other services. The Healthcare Business provides cardiovascular, respiratory care, pain management, remote patient monitoring, and other solutions. The Device and Module Solutions Business offers relays, switches, connectors, and sensors. OMRON Corporation was founded in 1933 and is headquartered in Kyoto, Japan.