Analyzing Kemet Corporation (KEM) & IPG Photonics Corporation (IPGP)
Kemet Corporation (NYSE: KEM) and IPG Photonics Corporation (NASDAQ:IPGP) are both computer and technology companies, but which is the better stock? We will contrast the two businesses based on the strength of their profitability, earnings, dividends, analyst recommendations, institutional ownership, risk and valuation.
Earnings & Valuation
This table compares Kemet Corporation and IPG Photonics Corporation’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Kemet Corporation||$846.86 million||1.35||$110.10 million||$4.88||4.91|
|IPG Photonics Corporation||$1.20 billion||8.57||$515.19 million||$5.97||32.02|
IPG Photonics Corporation has higher revenue and earnings than Kemet Corporation. Kemet Corporation 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 table compares Kemet Corporation and IPG Photonics Corporation’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|IPG Photonics Corporation||26.84%||19.75%||17.31%|
This is a breakdown of current ratings and price targets for Kemet Corporation and IPG Photonics Corporation, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|IPG Photonics Corporation||0||3||5||0||2.63|
Kemet Corporation currently has a consensus price target of $18.13, suggesting a potential downside of 24.35%. IPG Photonics Corporation has a consensus price target of $150.00, suggesting a potential downside of 21.52%. Given IPG Photonics Corporation’s stronger consensus rating and higher probable upside, analysts clearly believe IPG Photonics Corporation is more favorable than Kemet Corporation.
Insider & Institutional Ownership
67.3% of Kemet Corporation shares are held by institutional investors. Comparatively, 59.1% of IPG Photonics Corporation shares are held by institutional investors. 3.9% of Kemet Corporation shares are held by insiders. Comparatively, 33.8% of IPG Photonics Corporation shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.
Risk & Volatility
Kemet Corporation has a beta of 3.56, meaning that its stock price is 256% more volatile than the S&P 500. Comparatively, IPG Photonics Corporation has a beta of 1.68, meaning that its stock price is 68% more volatile than the S&P 500.
IPG Photonics Corporation beats Kemet Corporation on 9 of the 14 factors compared between the two stocks.
About Kemet Corporation
KEMET Corporation (KEMET) is a manufacturer of passive electronic components. The Company operates in two segments: Solid Capacitors, and Film and Electrolytic. The Solid Capacitors segment primarily produces tantalum, aluminum, polymer and ceramic capacitors. Solid Capacitors also produces tantalum powder used in the production of tantalum capacitors. The Film and Electrolytic Business Group produces film, paper and wet aluminum electrolytic capacitors. It also designs and produces EMI Filters. The Company’s product offerings include surface mount, which are attached directly to the circuit board; leaded capacitors, which are attached to the circuit board using lead wires, and chassis-mount and other pin-through-hole board-mount capacitors, which utilize attachment methods, such as screw terminal and snap-in. The Company sells its products to a range of original equipment manufacturers (OEMs) and electronics manufacturing services (EMS) providers.
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.
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