Head-To-Head Review: Spire (SPIR) versus IPG Photonics (IPGP)

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

Analyst Ratings

This is a summary of current ratings and price targets for IPG Photonics and Spire, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
IPG Photonics 0 6 7 0 2.54
Spire 0 0 0 0 N/A

IPG Photonics presently has a consensus target price of $170.22, suggesting a potential downside of 3.00%. Given IPG Photonics’ higher possible upside, equities research analysts clearly believe IPG Photonics is more favorable than Spire.

Profitability

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

Net Margins Return on Equity Return on Assets
IPG Photonics 27.67% 18.66% 16.03%
Spire N/A N/A N/A

Risk and Volatility

IPG Photonics has a beta of 1.84, suggesting that its share price is 84% more volatile than the S&P 500. Comparatively, Spire has a beta of 3, suggesting that its share price is 200% more volatile than the S&P 500.

Valuation and Earnings

This table compares IPG Photonics and Spire’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
IPG Photonics $1.46 billion 6.38 $404.03 million $7.38 23.78
Spire N/A N/A N/A N/A N/A

IPG Photonics has higher revenue and earnings than Spire.

Insider & Institutional Ownership

67.3% of IPG Photonics shares are held by institutional investors. 33.9% of IPG Photonics shares are held by company insiders. Comparatively, 29.2% of Spire shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Summary

IPG Photonics beats Spire on 8 of the 9 factors compared between the two stocks.

IPG Photonics Company Profile

IPG Photonics Corporation develops and manufactures a range of high-performance fiber lasers, fiber amplifiers, and diode lasers used in various applications primarily in materials processing worldwide. The company's laser products include low, medium, and high power lasers; 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; laser diode chips and packaged laser diodes; and high power optical fiber delivery cables, fiber couplers, beam switches, chillers, scanners, and other accessories. It also provides erbium-doped fiber and Raman amplifiers, and integrated communications systems, which are deployed in broadband networks, such as fiber to the home, fiber to the curb, passive optical networks, and dense wavelength division multiplexing (DWDM) networks; ytterbium and thulium specialty fiber amplifiers and broadband light sources; and single-frequency, linearly polarized, and polarization-maintaining versions of its amplifier products. In addition, the company offers interconnect, coarse wavelength division multiplexing, DWDM, and tunable-based pluggable interfaces to serve optical transmission needs; integrated laser systems; 2D compact flat sheet cutter systems and multi-axis systems; welding seam stepper and picker, a fiber laser welding tool; and specialized fiber laser systems for material processing applications. Its lasers and amplifiers are also used in materials processing, advanced communications, and medical applications. 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 Oxford, Massachusetts.

Spire Company Profile

Spire Corporation is engaged in developing, manufacturing, and marketing engineered products and services in the areas of photovoltaic solar and biomedical. The company offers specialized equipment for the production of terrestrial photovoltaic modules from solar cells; and photovoltaic systems for grid connected application in the commercial markets. Its products comprise Spi-Sun simulator, which tests module performance; and turn-key cell and module lines, and other individual equipment. The company also provides training and assistance with module certification, and solar factory management services. In addition, it offers surface treatments to the manufacturers of orthopedic and other medical devices; and performs sponsored research programs into practical applications of biomedical technologies. The company offers its products directly, as well as through distributors and sales representatives in the United States, Asia, Europe/Africa, and internationally. Spire Corporation was founded in 1969 and is based in Billerica, Massachusetts.

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