Dialog Semiconductor (OTCMKTS:DLGNF – Get Rating) and IPG Photonics (NASDAQ:IPGP – Get Rating) are both mid-cap computer and technology companies, but which is the superior business? We will compare the two businesses based on the strength of their earnings, valuation, profitability, analyst recommendations, institutional ownership, risk and dividends.
Valuation & Earnings
This table compares Dialog Semiconductor and IPG Photonics' gross revenue, earnings per share (EPS) and valuation.
Get Dialog Semiconductor alerts:| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Dialog Semiconductor | $1.38 billion | 4.17 | $84.50 million | $3.32 | 24.22 |
| IPG Photonics | $1.46 billion | 2.92 | $278.42 million | $5.02 | 16.93 |
IPG Photonics has higher revenue and earnings than Dialog Semiconductor. IPG Photonics is trading at a lower price-to-earnings ratio than Dialog Semiconductor, indicating that it is currently the more affordable of the two stocks.
Risk and Volatility
Dialog Semiconductor has a beta of 1.74, indicating that its share price is 74% more volatile than the S&P 500. Comparatively, IPG Photonics has a beta of 1.39, indicating that its share price is 39% more volatile than the S&P 500.Profitability
This table compares Dialog Semiconductor and IPG Photonics' net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Dialog Semiconductor | 5.72% | 16.55% | 13.08% |
| IPG Photonics | 17.91% | 10.31% | 8.97% |
Institutional & Insider Ownership
65.2% of IPG Photonics shares are held by institutional investors. 33.5% of IPG Photonics shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.
Analyst Recommendations
This is a summary of current recommendations for Dialog Semiconductor and IPG Photonics, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Dialog Semiconductor | 0 | 0 | 0 | 0 | N/A |
| IPG Photonics | 2 | 2 | 3 | 0 | 2.14 |
IPG Photonics has a consensus price target of $168.43, indicating a potential upside of 98.22%. Given IPG Photonics' higher possible upside, analysts clearly believe IPG Photonics is more favorable than Dialog Semiconductor.
Summary
IPG Photonics beats Dialog Semiconductor on 8 of the 13 factors compared between the two stocks.
About Dialog Semiconductor
(Get Rating)
Dialog Semiconductor Plc engages in the design, development, and marketing of integrated circuit (IC) products. It operates through the following segments: Custom Mixed Signal (CMS), Advanced Mixed Signal (AMS), Connectivity and Audio (C&A), and Industrial IoT. The CMS segment provides custom ICs designed to meet the needs of the customers in the mobile, industrial, automotive, computing and storage markets. The AMS segment offers standard products including CMICs, AC/DC converter solutions for smaller, fast charging power adaptors for portable devices as well as LED drivers for backlighting and solid state lighting products. The C&A segment includes standard products incorporating short-range wireless, digital cordless, Bluetooth low energy, VoIP, and low-power Wi-Fi technologies. The Industrial IoT segment consists of products enabling smart factory and building automation including non-volatile memory (NVM) ICs, industrial communication ICs, custom-designed ASICs and embedded systems, servers, and software. The company was founded in 1990 and is headquartered in Reading, the United Kingdom.
About IPG Photonics
(Get Rating)
IPG Photonics Corporation develops, manufactures, and sells various high-performance fiber lasers, fiber amplifiers, and diode lasers used in various applications primarily in materials processing worldwide. The company's laser products include hybrid fiber-solid state lasers with green and ultraviolet wavelengths; 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; 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; and ytterbium and thulium specialty fiber amplifiers and broadband light sources. In addition, the company offers integrated laser systems; 2D compact flat sheet cutter systems and multi-axis systems; welding seam stepper and picker, a fiber laser welding tool; high precision laser systems; specialized fiber laser systems; and optical transceiver and transponder modules for interconnecting electronic equipment, including Ethernet switches, IP routers and DWDM/SONET/SDH optical transport modules within telecommunications, cable multi-system operators, and data center networking applications. It's lasers and amplifiers are also used in materials processing, communications, and medical and advanced 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.
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