Ambarella, Inc. (AMBA) vs IPG Photonics Corporation (IPGP)

Ambarella, Inc. and IPG Photonics Corporation are both Semiconductor Equipment & Materials companies. IPG Photonics Corporation is the larger, with a market value of $3.1B against $2.8B — 1.1× the size. Ambarella, Inc. has negative trailing earnings, so its P/E is not meaningful; IPG Photonics Corporation trades at 108×. Ambarella, Inc. grew revenue faster over the last twelve months: 20.0% against 13.0%. IPG Photonics Corporation has the higher net margin (2.58% vs −13.5%) and the higher return on invested capital (0.40% vs −11.2%). Across the 18 metrics below, IPG Photonics Corporation leads on 13 and Ambarella, Inc. on 5.

Valuation

Metric AMBA IPGP Semiconductor Equipment & Materials median
P/E n/m 107.59 45.03
P/S 6.48 2.82 4.64
P/B 4.36 1.42 3.22
Price to free cash flow n/m 136.07 48.18
EV/EBITDA n/m 35.64 33.11
EV/Sales 5.82 2.03 5.52
Earnings yield (2.10%) 0.93% 1.41%
Free cash flow yield (0.21%) 0.73% 1.67%

Profitability

Metric AMBA IPGP Semiconductor Equipment & Materials median
Gross margin 58.52% 38.35% 43.95%
Operating margin (14.90%) 0.75% 10.32%
Net margin (13.48%) 2.58% 7.45%
Free cash flow margin 2.33% 2.07% 6.77%
Return on equity (9.41%) 1.30% 4.78%
Return on assets (7.58%) 1.15% 3.62%
Return on invested capital (11.19%) 0.40% 6.10%

Growth

Metric AMBA IPGP Semiconductor Equipment & Materials median
Revenue growth (TTM) 20.04% 13.04% 14.60%
EPS growth (last fiscal year) 37.32% 117.85% (4.56%)
Revenue growth, 5-year CAGR 11.87% (3.52%) 10.11%
Net income growth, 5-year CAGR 0.00% (27.90%) 0.00%

Health

Metric AMBA IPGP Semiconductor Equipment & Materials median
Debt to equity 0.00 0.00 0.09
Current ratio 2.85 6.18 3.66
Net debt to EBITDA 5.48 (12.73) (0.49)

Dividend

Metric AMBA IPGP Semiconductor Equipment & Materials median
Dividend yield — — 0.42%
Payout ratio — — 0.19

Size

Metric AMBA IPGP Semiconductor Equipment & Materials median
Market cap 2.80b 3.14b 3.80b

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