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 ($2.6B and $2.4B). Ambarella, Inc. has negative trailing earnings, so its P/E is not meaningful; IPG Photonics Corporation trades at 65.0×. Ambarella, Inc. grew revenue faster over the last twelve months: 20.0% against 14.8%. IPG Photonics Corporation has the higher net margin (3.65% vs −13.5%) and the higher return on invested capital (1.06% vs −11.2%). Across the 18 metrics below, IPG Photonics Corporation leads on 14 and Ambarella, Inc. on 4.

Valuation

Metric AMBA IPGP Semiconductor Equipment & Materials median
P/E n/m 64.97 33.70
P/S 5.85 2.39 4.22
P/B 3.94 1.23 2.94
Price to free cash flow n/m 70.44 31.49
EV/EBITDA n/m 23.54 22.64
EV/Sales 5.20 1.58 4.97
Earnings yield (2.32%) 1.54% 2.02%
Free cash flow yield (0.23%) 1.42% 2.27%

Profitability

Metric AMBA IPGP Semiconductor Equipment & Materials median
Gross margin 58.52% 38.71% 46.86%
Operating margin (14.90%) 1.89% 12.02%
Net margin (13.48%) 3.65% 10.16%
Free cash flow margin 2.33% 3.39% 6.73%
Return on equity (9.41%) 1.90% 5.31%
Return on assets (7.58%) 1.66% 4.10%
Return on invested capital (11.19%) 1.06% 6.36%

Growth

Metric AMBA IPGP Semiconductor Equipment & Materials median
Revenue growth (TTM) 20.04% 14.78% 15.82%
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 5.99 3.56
Net debt to EBITDA 5.48 (12.73) (0.49)

Dividend

Metric AMBA IPGP Semiconductor Equipment & Materials median
Dividend yield — — 0.59%
Payout ratio — — 0.16

Size

Metric AMBA IPGP Semiconductor Equipment & Materials median
Market cap 2.44b 2.64b 3.04b

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