IPG Photonics Corporation (IPGP) vs Veeco Instruments Inc. (VECO)

IPG Photonics Corporation and Veeco Instruments Inc. are both Semiconductor Equipment & Materials companies. IPG Photonics Corporation is the larger, with a market value of $2.6B against $2.0B — 1.3× the size. IPG Photonics Corporation trades at the lower P/E: 65.0× against 80.7×. IPG Photonics Corporation grew revenue faster over the last twelve months: 14.8% against 6.58%. IPG Photonics Corporation has the higher net margin (3.65% vs 0.00%) and the lower return on invested capital (1.06% vs 2.05%). Across the 22 metrics below, IPG Photonics Corporation leads on 15 and Veeco Instruments Inc. on 7.

Valuation

Metric IPGP VECO Semiconductor Equipment & Materials median
P/E 64.97 80.74 33.70
P/S 2.39 2.85 4.22
P/B 1.23 2.24 2.94
Price to free cash flow 70.44 16.46 31.49
EV/EBITDA 23.54 44.09 22.64
EV/Sales 1.58 2.54 4.97
Earnings yield 1.54% 1.24% 2.02%
Free cash flow yield 1.42% 6.08% 2.27%

Profitability

Metric IPGP VECO Semiconductor Equipment & Materials median
Gross margin 38.71% 37.39% 46.86%
Operating margin 1.89% 3.02% 12.02%
Net margin 3.65% 0.00% 10.16%
Free cash flow margin 3.39% 17.32% 6.73%
Return on equity 1.90% 0.00% 5.31%
Return on assets 1.66% 0.00% 4.10%
Return on invested capital 1.06% 2.05% 6.36%

Growth

Metric IPGP VECO Semiconductor Equipment & Materials median
Revenue growth (TTM) 14.78% 6.58% 15.82%
EPS growth (last fiscal year) 117.85% (52.03%) (4.56%)
Revenue growth, 5-year CAGR (3.52%) 7.90% 10.11%
Net income growth, 5-year CAGR (27.90%) 0.00% 0.00%

Health

Metric IPGP VECO Semiconductor Equipment & Materials median
Debt to equity 0.00 0.25 0.09
Current ratio 5.99 3.87 3.56
Net debt to EBITDA (12.73) (2.95) (0.49)

Dividend

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

Size

Metric IPGP VECO Semiconductor Equipment & Materials median
Market cap 2.64b 2.03b 3.04b

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