WPP vs IPG Photonics Which Outperforms?

WPP, a global advertising and marketing services company, and IPG Photonics, a leading manufacturer of high-performance fiber lasers, are both publicly traded companies that operate in different industries. WPP has faced challenges in recent years due to changes in the advertising industry and increased competition. In contrast, IPG Photonics has experienced steady growth as demand for laser technology continues to rise. Investors may consider factors such as revenue growth, profitability, and industry trends when comparing these two stocks.

WPP or IPG Photonics?

When comparing WPP and IPG Photonics, different investors may prioritize various metrics based on their investment strategies and goals. So, ask yourself what type of investor you are. This will guide you in determining which metrics are most important for your investment decision between WPP and IPG Photonics.

Dividend Investors:

Dividend investors look for stable and growing income streams, using dividend metrics to assess potential investments. A company's dividend yield essentially measures the size of its dividend relative to the total market value of the company. WPP has a dividend yield of 3.57%, while IPG Photonics has a dividend yield of -%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. WPP reports a 5-year dividend growth of -9.86% year and a payout ratio of 313.03%. On the other hand, IPG Photonics reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%.

Value Investors:

Value investors focus on financial metrics to determine a stock's intrinsic value compared to its market value. The Price-to-Earnings (P/E) Ratio links stock price to a company's earnings per share, with WPP P/E ratio at 227.33 and IPG Photonics's P/E ratio at -24.28. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. WPP P/B ratio is 13.17 while IPG Photonics's P/B ratio is 1.70.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, WPP has seen a 5-year revenue growth of -0.78%, while IPG Photonics's is 0.00%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with WPP's ROE at 5.90% and IPG Photonics's ROE at -6.48%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $54.32 for WPP and $81.74 for IPG Photonics. Over the past year, WPP's prices ranged from $42.49 to $55.74, with a yearly change of 31.18%. IPG Photonics's prices fluctuated between $61.86 and $111.11, with a yearly change of 79.62%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.