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 $3.3B against $2.8B — 1.2× the size. IPG Photonics Corporation trades at the lower P/E: 118× against 131×. IPG Photonics Corporation grew revenue faster over the last twelve months: 13.0% against −2.52%. Veeco Instruments Inc. has the higher net margin (3.35% vs 2.58%) and the higher return on invested capital (1.64% vs 0.40%). Across the 22 metrics below, IPG Photonics Corporation leads on 12 and Veeco Instruments Inc. on 10.

Valuation

Metric IPGP VECO Semiconductor Equipment & Materials median
P/E 118.36 130.85 54.39
P/S 3.10 4.44 6.08
P/B 1.56 3.36 4.89
Price to free cash flow 149.70 35.61 60.92
EV/EBITDA 40.35 74.76 39.95
EV/Sales 2.30 4.18 6.36
Earnings yield 0.84% 0.76% 1.14%
Free cash flow yield 0.67% 2.81% 1.28%

Profitability

Metric IPGP VECO Semiconductor Equipment & Materials median
Gross margin 38.35% 37.92% 43.95%
Operating margin 0.75% 2.69% 10.32%
Net margin 2.58% 3.35% 7.45%
Free cash flow margin 2.07% 12.47% 6.77%
Return on equity 1.30% 2.60% 4.78%
Return on assets 1.15% 1.70% 3.62%
Return on invested capital 0.40% 1.64% 6.10%

Growth

Metric IPGP VECO Semiconductor Equipment & Materials median
Revenue growth (TTM) 13.04% (2.52%) 14.60%
EPS growth (last fiscal year) 117.85% (52.03%) —
Revenue growth, 5-year CAGR (3.52%) 7.90% 8.85%
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 6.18 3.93 3.66
Net debt to EBITDA (12.73) (2.95) (0.49)

Dividend

Metric IPGP VECO Semiconductor Equipment & Materials median
Dividend yield — — 0.85%
Payout ratio 0.00 0.00 0.00

Size

Metric IPGP VECO Semiconductor Equipment & Materials median
Market cap 3.29b 2.81b 4.63b

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