Intchains Group (NASDAQ:ICG – Get Free Report) and nLIGHT (NASDAQ:LASR – Get Free Report) are both small-cap business services companies, but which is the superior business? We will contrast the two businesses based on the strength of their valuation, institutional ownership, analyst recommendations, dividends, profitability, risk and earnings.
Earnings and Valuation
This table compares Intchains Group and nLIGHT’s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Intchains Group | $11.58 million | 41.41 | -$3.78 million | ($0.10) | -80.00 |
| nLIGHT | $209.92 million | 2.69 | -$41.67 million | ($1.02) | -11.66 |
Intchains Group has higher earnings, but lower revenue than nLIGHT. Intchains Group is trading at a lower price-to-earnings ratio than nLIGHT, indicating that it is currently the more affordable of the two stocks.
Volatility and Risk
Insider & Institutional Ownership
83.9% of nLIGHT shares are held by institutional investors. 6.1% of nLIGHT shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.
Analyst Recommendations
This is a summary of current recommendations for Intchains Group and nLIGHT, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Intchains Group | 0 | 0 | 1 | 0 | 3.00 |
| nLIGHT | 0 | 0 | 2 | 0 | 3.00 |
Intchains Group presently has a consensus price target of $10.00, indicating a potential upside of 25.00%. nLIGHT has a consensus price target of $16.00, indicating a potential upside of 34.57%. Given nLIGHT’s higher possible upside, analysts clearly believe nLIGHT is more favorable than Intchains Group.
Profitability
This table compares Intchains Group and nLIGHT’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Intchains Group | -56.73% | -4.84% | -4.75% |
| nLIGHT | -23.81% | -17.86% | -14.69% |
Summary
nLIGHT beats Intchains Group on 8 of the 13 factors compared between the two stocks.
About Intchains Group
Intchains Group Limited designs and sells application-specific integrated circuit chips for blockchain applications in the People's Republic of China. The company also offers ancillary software, hardware, and other products. It serves distributors. Intchains Group Limited was founded in 2017 and is based in Pudong, China.
About nLIGHT
nLIGHT, Inc. designs, develops, manufactures, and sells semiconductor and fiber lasers for industrial, microfabrication, and aerospace and defense applications. The company operates in two segments, Laser Products and Advanced Development. It offers semiconductor lasers with various ranges of power levels, wavelengths, and output fiber sizes; and programmable and serviceable fiber lasers for use in industrial and aerospace and defense applications. The company also provides laser sensors, including light detection and ranging technologies for intelligence, surveillance, and reconnaissance applications; and fiber amplifiers, beam combination, and control systems for use in high-energy laser systems in directed energy applications. It sells its products through direct sales force in the United States, China, South Korea, and European countries, as well as through independent sales representatives and distributors in Asia, Australia, Europe, the Middle East, and South America. The company was formerly known as nLight Photonics Corporation and changed its name to nLIGHT, Inc. in January 2016. nLIGHT, Inc. was incorporated in 2000 and is headquartered in Camas, Washington.
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