Financial Analysis: IPG Photonics (NASDAQ:IPGP) & SEALSQ (NASDAQ:LAES)

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

Risk & Volatility

SEALSQ has a beta of 3.38, meaning that its share price is 238% more volatile than the S&P 500. Comparatively, IPG Photonics has a beta of 1, meaning that its share price has a similar volatility profile to the S&P 500.

Valuation & Earnings

This table compares SEALSQ and IPG Photonics”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
SEALSQ	$20.14 million	0.38	-$3.27 million	N/A	N/A
IPG Photonics	$1.11 billion	3.07	$218.88 million	$3.88	19.26

IPG Photonics has higher revenue and earnings than SEALSQ.

Institutional and Insider Ownership

1.3% of SEALSQ shares are owned by institutional investors. Comparatively, 93.8% of IPG Photonics shares are owned by institutional investors. 38.0% of IPG Photonics shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
SEALSQ	N/A	N/A	N/A
IPG Photonics	12.67%	5.99%	5.38%

Analyst Ratings

This is a summary of recent ratings for SEALSQ and IPG Photonics, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
SEALSQ	0	0	1	0	3.00
IPG Photonics	1	2	2	1	2.50

SEALSQ currently has a consensus price target of $1.75, indicating a potential upside of 292.55%. IPG Photonics has a consensus price target of $93.50, indicating a potential upside of 25.84%. Given SEALSQ’s stronger consensus rating and higher possible upside, analysts clearly believe SEALSQ is more favorable than IPG Photonics.

Summary

IPG Photonics beats SEALSQ on 10 of the 13 factors compared between the two stocks.

About SEALSQ

SEALSQ Corp, together with its subsidiaries, designs, develops, and markets semiconductor chips in Europe, the Middle East, Africa, North America, the Asia Pacific, and Latin America. It offers semiconductors, such as VaultIC secure elements, secure arm platform, and smart card reader chips; identity provisioning services, such as IoT device provisioning and chip provisioning; and managed PKI for IoT solutions and trust services. The company provides device-to-cloud authentication, device attestation for matter, GSMA root certificate, device-to-device authentication, data protection, anti-counterfeiting and brand protection, security access, device ID provisioning, identity lifecycle management, and satellite IoT connectivity solutions. Its products are used in various applications, such as smart energy, smart home, automotive EV charging, consumer IoT, aerospace and military, telecommunications, logistics, medical, luxury, and other industrial applications. SEALSQ Corp was founded in 2022 and is based in Cointrin, Switzerland.

About IPG Photonics

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. Its 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. The company also offers integrated laser systems; LightWELD, a handheld laser welding system; 2D compact flat sheet cutter systems and multi-axis systems for fine welding, cutting, and drilling; welding seam stepper and picker, a fiber laser welding tool; high precision laser systems; specialized fiber laser systems for material processing applications; robotic and multi-axis workstations for welding, cutting and cladding, flatbed cutting systems, and diode markers; and laser and non-laser robotic welding and automation solutions. It serves materials processing, communications, medical procedures, and advanced applications and communications markets. 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 Marlborough, Massachusetts.