Critical Comparison: On Track Innovations (OTCMKTS:OTIVF) vs. IPG Photonics (NASDAQ:IPGP)

On Track Innovations (OTCMKTS:OTIVFGet Rating) and IPG Photonics (NASDAQ:IPGPGet Rating) are both computer and technology companies, but which is the superior investment? We will compare the two businesses based on the strength of their institutional ownership, dividends, risk, earnings, profitability, analyst recommendations and valuation.

Analyst Ratings

This is a breakdown of current recommendations for On Track Innovations and IPG Photonics, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
On Track Innovations 0 0 0 0 N/A
IPG Photonics 2 2 4 0 2.25

IPG Photonics has a consensus target price of $180.00, indicating a potential upside of 103.25%. Given IPG Photonics’ higher probable upside, analysts plainly believe IPG Photonics is more favorable than On Track Innovations.

Valuation & Earnings

This table compares On Track Innovations and IPG Photonics’ revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
On Track Innovations $14.88 million 0.31 -$11.66 million N/A N/A
IPG Photonics $1.46 billion 3.14 $278.42 million $5.21 17.00

IPG Photonics has higher revenue and earnings than On Track Innovations.

Insider and Institutional Ownership

33.6% of On Track Innovations shares are held by institutional investors. Comparatively, 66.7% of IPG Photonics shares are held by institutional investors. 8.0% of On Track Innovations shares are held by insiders. Comparatively, 33.5% of IPG Photonics shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Volatility & Risk

On Track Innovations has a beta of 0.84, suggesting that its share price is 16% less volatile than the S&P 500. Comparatively, IPG Photonics has a beta of 1.36, suggesting that its share price is 36% more volatile than the S&P 500.

Profitability

This table compares On Track Innovations and IPG Photonics’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
On Track Innovations -63.06% -1,110.80% -62.59%
IPG Photonics 18.84% 10.27% 8.96%

Summary

IPG Photonics beats On Track Innovations on 11 of the 11 factors compared between the two stocks.

On Track Innovations Company Profile (Get Rating)

On Track Innovations Ltd., together with its subsidiaries, designs, develops, and markets cashless payment solutions worldwide. It operates in two segments, Retail and Petroleum. The company's product portfolio includes readers, controllers and terminals, management software, payment services, and Payment System as a Service (PSaaS). It offers OtiMetry System that incorporates telemetry, sales, and operations into solution with cloud control, and real-time online management and alerts; TRIO-IQ, a telemetry gateway and EMV payment reader; TRIO, a payment device for installation in kiosks and vending machines; UNO-8 and UNO-PLUS contactless readers for unattended retail environments with self-service payment stations, including ATMs, toll roads, access control, and mass transit validators; and controllers and gateways comprises OTI TeleBox, a machine-to-machine controller that enables the communication between machines, and GoBox, a machine-to-machine controller that communicates between machines, cashless readers, and remote servers. The company also provides a terminal management system, which is a cloud-based system that provides real-time control and insights of each machine enabling operators to remotely manage their terminal's fleet; and cloud based vending management system and vending BI. In addition, it offers payment services, including payment service API, an application programming interface; close loop payment that supports close-loop payment cards; and APIs for integration with mobile payment solutions, as well as original equipment manufacturer (OEM) payment solutions. The company's readers are certified by various card associations and support Apple Pay, Google Pay, Samsung Pay, MIFARE, FeliCa, and others. The company was formerly known as De-Bug Innovations Ltd. and changed its name to On Track Innovations Ltd. in July 1991. On Track Innovations Ltd. was incorporated in 1990 and is headquartered in Yokneam Illit, Israel.

IPG Photonics Company Profile (Get Rating)

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. The company's 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. It also provides erbium-doped fiber and Raman amplifiers, and integrated communications systems, which are deployed in broadband networks; and ytterbium and thulium specialty fiber amplifiers and broadband light sources. In addition, the company offers integrated laser systems; 2D compact flat sheet cutter systems and multi-axis systems; welding seam stepper and picker, a fiber laser welding tool; high precision laser systems; specialized fiber laser systems; and optical transceiver and transponder modules for interconnecting electronic equipment, including Ethernet switches, IP routers and DWDM/SONET/SDH optical transport modules within telecommunications, cable multi-system operators, and data center networking applications. It's lasers and amplifiers are also used in materials processing, communications, and medical and advanced applications. 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 Oxford, Massachusetts.

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