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

Ambarella, Inc. and IPG Photonics Corporation are both Semiconductor Equipment & Materials companies. Ambarella, Inc. and IPG Photonics Corporation are of similar size ($3.3B and $3.1B). Ambarella, Inc. has negative trailing earnings, so its P/E is not meaningful; IPG Photonics Corporation trades at 118×. 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 118.36 54.39
P/S 7.68 3.10 6.08
P/B 5.17 1.56 4.89
Price to free cash flow n/m 149.70 60.92
EV/EBITDA n/m 40.35 39.95
EV/Sales 7.03 2.30 6.36
Earnings yield (1.77%) 0.84% 1.14%
Free cash flow yield (0.18%) 0.67% 1.28%

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% —
Revenue growth, 5-year CAGR 11.87% (3.52%) 8.85%
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 — — 0.85%
Payout ratio 0.00 0.00 0.00

Size

Metric AMBA IPGP Semiconductor Equipment & Materials median
Market cap 3.13b 3.29b 4.63b

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