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 $3.1B against $2.8B — 1.1× the size. IPG Photonics Corporation trades at the lower P/E: 108× against 113×. 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 107.59 112.62 45.03
P/S 2.82 3.82 4.64
P/B 1.42 2.89 3.22
Price to free cash flow 136.07 30.65 48.18
EV/EBITDA 35.64 63.71 33.11
EV/Sales 2.03 3.57 5.52
Earnings yield 0.93% 0.89% 1.41%
Free cash flow yield 0.73% 3.26% 1.67%

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%) (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 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 — — 0.42%
Payout ratio — — 0.19

Size

Metric IPGP VECO Semiconductor Equipment & Materials median
Market cap 3.14b 2.76b 3.80b

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