Kimball Electronics (NASDAQ:KE – Get Free Report) and IPG Photonics (NASDAQ:IPGP – Get Free Report) are both technology companies, but which is the better business? We will contrast the two businesses based on the strength of their valuation, analyst recommendations, earnings, profitability, institutional ownership, dividends and risk.
Profitability
This table compares Kimball Electronics and IPG Photonics’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Kimball Electronics | 1.95% | 4.42% | 2.35% |
| IPG Photonics | 2.58% | 3.39% | 2.98% |
Analyst Recommendations
This is a summary of current recommendations and price targets for Kimball Electronics and IPG Photonics, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Kimball Electronics | 0 | 2 | 2 | 1 | 2.80 |
| IPG Photonics | 1 | 2 | 5 | 0 | 2.50 |
Institutional & Insider Ownership
76.0% of Kimball Electronics shares are owned by institutional investors. Comparatively, 93.8% of IPG Photonics shares are owned by institutional investors. 2.8% of Kimball Electronics shares are owned by insiders. Comparatively, 37.5% of IPG Photonics shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.
Earnings & Valuation
This table compares Kimball Electronics and IPG Photonics”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Kimball Electronics | $1.43 billion | 0.43 | $16.98 million | $1.13 | 22.88 |
| IPG Photonics | $1.00 billion | 3.63 | $31.10 million | $0.65 | 131.98 |
IPG Photonics has lower revenue, but higher earnings than Kimball Electronics. Kimball Electronics is trading at a lower price-to-earnings ratio than IPG Photonics, indicating that it is currently the more affordable of the two stocks.
Volatility and Risk
Kimball Electronics has a beta of 1.23, suggesting that its share price is 23% more volatile than the S&P 500. Comparatively, IPG Photonics has a beta of 0.96, suggesting that its share price is 4% less volatile than the S&P 500.
Summary
IPG Photonics beats Kimball Electronics on 9 of the 15 factors compared between the two stocks.
About Kimball Electronics
Kimball Electronics, Inc. engages in the provision of electronics manufacturing, engineering, and supply chain support services to customers in the automotive, medical, and industrial end markets. The Company also offers contract manufacturing services, including engineering and supply chain support for the production of electronic assemblies and other products, including non-electronic components, medical devices, medical disposables, and precision molded plastics, as well as automation, test, and inspection equipment primarily used in automotive, medical, and industrial applications. In addition, it is also involved in the production and testing of printed circuit board assemblies, as well as clean room assembly, cold chain, and product sterilization management activities. Further, the company offers design services and support, supply chain services and support, rapid prototyping and new product introduction support, product design and process validation and qualification, industrialization and automation of manufacturing processes, reliability testing, aftermarket services, drug delivery devices and solutions with and without electronics, and product life cycle management services, as well as and assembly of medical, automotive, and industrial products. It operates in the United States, China, Mexico, Poland, Romania, Thailand, India, Japan, Vietnam, and internationally. Kimball Electronics, Inc. was founded in 1961 and is headquartered in Jasper, Indiana.
About IPG Photonics
IPG Photonics Corporation develops, manufactures, and sells various high-performance fiber lasers, fiber amplifiers, and diode lasers used in various applications primarily in materials processing worldwide. Its laser products include hybrid fiber-solid state lasers with green and ultraviolet wavelengths; fiber pigtailed packaged diodes and fiber coupled direct diode laser systems; high-energy pulsed lasers, multi-wavelength and tunable lasers, and single-polarization and single-frequency lasers; and high-power optical fiber delivery cables, fiber couplers, beam switches, chillers, scanners, and other accessories. The company also offers integrated laser systems; LightWELD, a handheld laser welding system; 2D compact flat sheet cutter systems and multi-axis systems for fine welding, cutting, and drilling; welding seam stepper and picker, a fiber laser welding tool; high precision laser systems; specialized fiber laser systems for material processing applications; robotic and multi-axis workstations for welding, cutting and cladding, flatbed cutting systems, and diode markers; and laser and non-laser robotic welding and automation solutions. It serves materials processing, communications, medical procedures, and advanced applications and communications markets. The company markets its products to original equipment manufacturers, system integrators, and end users through direct sales force, as well as through agreements with independent sales representatives and distributors. IPG Photonics Corporation was founded in 1990 and is headquartered in Marlborough, Massachusetts.
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