Contrasting Bel Fuse (NASDAQ:BELFB) and IPG Photonics Corporation (IPGP)
IPG Photonics Corporation (NASDAQ: IPGP) and Bel Fuse (NASDAQ:BELFB) are both computer and technology companies, but which is the superior business? We will compare the two businesses based on the strength of their profitabiliy, analyst recommendations, dividends, risk, earnings, valuation and institutional ownership.
Bel Fuse pays an annual dividend of $0.28 per share and has a dividend yield of 1.1%. IPG Photonics Corporation does not pay a dividend. Bel Fuse pays out 9.2% of its earnings in the form of a dividend.
This table compares IPG Photonics Corporation and Bel Fuse’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%|
Risk & Volatility
IPG Photonics Corporation has a beta of 1.71, suggesting that its stock price is 71% more volatile than the S&P 500. Comparatively, Bel Fuse has a beta of 0.85, suggesting that its stock price is 15% less volatile than the S&P 500.
Insider & Institutional Ownership
60.0% of IPG Photonics Corporation shares are owned by institutional investors. Comparatively, 60.1% of Bel Fuse shares are owned by institutional investors. 34.2% of IPG Photonics Corporation shares are owned by insiders. Comparatively, 8.8% of Bel Fuse shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.
Earnings and Valuation
This table compares IPG Photonics Corporation and Bel Fuse’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|IPG Photonics Corporation||$1.08 billion||7.73||$457.36 million||$5.31||29.28|
|Bel Fuse||$492.64 million||0.61||$49.93 million||$3.03||8.25|
IPG Photonics Corporation has higher revenue and earnings than Bel Fuse. Bel Fuse 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.
This is a breakdown of recent ratings and target prices for IPG Photonics Corporation and Bel Fuse, as provided by MarketBeat.com.
|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, suggesting a potential downside of 13.83%. Bel Fuse has a consensus target price of $39.00, suggesting a potential upside of 56.00%. Given Bel Fuse’s higher probable upside, analysts clearly believe Bel Fuse is more favorable than IPG Photonics Corporation.
IPG Photonics Corporation beats Bel Fuse on 13 of the 16 factors compared between the two stocks.
About IPG Photonics Corporation
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.
About Bel Fuse
Bel Fuse Inc. (Bel) designs, manufactures and markets a range of products that power, protect and connect electronic circuits. The Company’s products include magnetic solutions, power solutions and protection, and connectivity solutions. The Company’s operating segments are North America, Asia and Europe. The Company markets magnetic solutions under the brand names, including Bel, TRP, MagJack and Signal. The Company markets power solutions and protection under the brand names, which include Bel Power Solutions, Power-One and Melcher. The Company markets connectivity solutions under the brand names Stratos, Fibreco, Cinch, Johnson, Trompeter, Midwest Microwave, Semflex and Stewart Connector. The Company’s products are used in the networking, telecommunications, computing, military, aerospace, transportation and broadcasting industries. Bel’s portfolio of products has application in the automotive, medical and consumer electronics markets.
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