Reviewing DragonWave (NASDAQ:DRWI) & IPG Photonics Corporation (IPGP)
IPG Photonics Corporation (NASDAQ: IPGP) and DragonWave (NASDAQ:DRWI) are both computer and technology companies, but which is the superior business? We will contrast the two companies based on the strength of their dividends, risk, valuation, institutional ownership, earnings, analyst recommendations and profitabiliy.
Institutional and Insider Ownership
60.0% of IPG Photonics Corporation shares are owned by institutional investors. Comparatively, 14.7% of DragonWave shares are owned by institutional investors. 34.2% of IPG Photonics Corporation 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.
This is a breakdown of current ratings and recommmendations for IPG Photonics Corporation and DragonWave, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|IPG Photonics Corporation||0||2||6||0||2.75|
IPG Photonics Corporation presently has a consensus target price of $134.00, indicating a potential downside of 11.04%. DragonWave has a consensus target price of $2.77, indicating a potential upside of 218.39%. Given DragonWave’s higher probable upside, analysts clearly believe DragonWave is more favorable than IPG Photonics Corporation.
Valuation & Earnings
This table compares IPG Photonics Corporation and DragonWave’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|IPG Photonics Corporation||$1.08 billion||7.49||$457.36 million||$5.31||28.37|
|DragonWave||$43.92 million||0.17||-$14.69 million||($3.51)||-0.25|
IPG Photonics Corporation has higher revenue and earnings than DragonWave. DragonWave is trading at a lower price-to-earnings ratio than IPG Photonics Corporation, indicating that it is currently the more affordable of the two stocks.
Risk & Volatility
IPG Photonics Corporation has a beta of 1.71, meaning that its share price is 71% more volatile than the S&P 500. Comparatively, DragonWave has a beta of 1.17, meaning that its share price is 17% more volatile than the S&P 500.
This table compares IPG Photonics Corporation and DragonWave’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|IPG Photonics Corporation||26.31%||18.56%||16.19%|
IPG Photonics Corporation beats DragonWave on 12 of the 13 factors compared between the two stocks.
IPG Photonics Corporation Company Profile
IPG Photonics Corporation is a developer and manufacturer of a line of fiber lasers, fiber amplifiers, diode lasers, laser systems and optical accessories that are used for various applications. The Company offers a line of lasers and amplifiers, which are used in materials processing, communications and medical applications. The Company sells its products globally to original equipment manufacturers (OEMs), system integrators and end users. The Company’s manufacturing facilities are located in the United States, Germany and Russia. The Company offers laser-based systems for certain markets and applications. Its products are designed to be used as general-purpose energy or light sources. Its product line includes High-Power Ytterbium CW (1,000-100,000 Watts), Mid-Power Ytterbium CW (100-999 Watts), Pulsed Ytterbium (0.1 to 200 Watts), Pulsed and CW, Quasi-CW Ytterbium (100-4,500 Watts), Erbium Amplifiers and Transceivers.
DragonWave Company Profile
DragonWave Inc (DragonWave) is a provider of packet microwave solutions for Internet protocol (IP) networks. The Company operates through broadband wireless backhaul equipment segment. The principal application of DragonWave’s products is mobile network backhaul. Additional applications include leased line replacement, last mile fiber extension and enterprise networks. The Company’s product lines include Harmony, Horizon, Avenue and NetViewer. The Harmony product line is a multi-service wireless platform enabling time division multiplexing (TDM) and packet-based services across wireless or wireline infrastructure. The Company’s Horizon product family is an Ethernet microwave portfolio and consists of Horizon Compact+ and Horizon Quantum. Its NetViewer is a multi-service, multi-product network management platform. The NetViewer enables provisioning, management, monitoring and configuration across the line of products in a single graphical user interface (GUI)-based system.
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