Bel Fuse (BELFB) vs. IPG Photonics Corporation (IPGP) Financial Analysis

Bel Fuse (NASDAQ: BELFB) and IPG Photonics Corporation (NASDAQ:IPGP) are both computer and technology companies, but which is the better investment? We will compare the two businesses based on the strength of their risk, valuation, institutional ownership, analyst recommendations, dividends, earnings and profitability.

Insider & Institutional Ownership

60.6% of Bel Fuse shares are held by institutional investors. Comparatively, 60.0% of IPG Photonics Corporation shares are held by institutional investors. 8.8% of Bel Fuse shares are held by insiders. Comparatively, 34.2% of IPG Photonics Corporation shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Valuation & Earnings

This table compares Bel Fuse and IPG Photonics Corporation’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Bel Fuse $492.63 million 0.64 $46.37 million $1.36 19.12
IPG Photonics Corporation $1.20 billion 7.44 $515.19 million $5.97 27.79

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.

Profitability

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

Net Margins Return on Equity Return on Assets
Bel Fuse 3.44% 11.61% 4.38%
IPG Photonics Corporation 26.84% 19.75% 17.31%

Dividends

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 20.6% of its earnings in the form of a dividend.

Volatility & Risk

Bel Fuse has a beta of 0.85, meaning that its share price is 15% less volatile than the S&P 500. Comparatively, IPG Photonics Corporation has a beta of 1.7, meaning that its share price is 70% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent ratings for Bel Fuse and IPG Photonics Corporation, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Bel Fuse 0 1 1 0 2.50
IPG Photonics Corporation 0 3 5 0 2.63

Bel Fuse currently has a consensus price target of $39.00, suggesting a potential upside of 50.00%. IPG Photonics Corporation has a consensus price target of $146.43, suggesting a potential downside of 11.74%. Given Bel Fuse’s higher possible upside, analysts plainly believe Bel Fuse is more favorable than IPG Photonics Corporation.

Summary

IPG Photonics Corporation beats Bel Fuse on 13 of the 16 factors compared between the two stocks.

Bel Fuse Company Profile

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.

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.

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