NOVT vs IPGP vs MKSI vs CGNX vs ONTO

For growth investors, MKS Inc.

(MKSI) is the stronger pick with 9. 6% revenue growth year-over-year, versus 1. 8% for Onto Innovation Inc. (ONTO). MKS Inc. (MKSI) offers the better valuation at 71. 7x trailing P/E (27. 3x forward), making it the more compelling value choice. Analysts rate Novanta Inc. (NOVT) a "Buy" — based on 3 analyst ratings — the highest consensus in this comparison. The "better buy" depends entirely on your goals: growth investors should weight revenue trajectory, value investors should weight P/E and PEG, and income investors should weight dividend yield and streak.

On trailing P/E, MKS Inc.

(MKSI) is the cheapest at 71. 7x versus IPG Photonics Corporation at 143. 1x. On forward P/E, MKS Inc. is actually cheaper at 27. 3x. The PEG ratio (P/E divided by earnings growth rate) is the most growth-adjusted single valuation metric: Onto Innovation Inc. wins at 1. 16x versus Novanta Inc. 's 11. 78x — a reasonable growth-adjusted valuation.

Over the past 5 years, Onto Innovation Inc.

(ONTO) delivered a total return of +360. 4%, compared to -44. 3% for IPG Photonics Corporation (IPGP). Over 10 years, the gap is even starker: ONTO returned +1491% versus IPGP's +23. 6%. Past returns do not guarantee future results, and the stock with the higher historical return may already have its best growth priced in.

By beta (market sensitivity over 5 years), Cognex Corporation (CGNX) is the lower-risk stock at 1.

54β versus Onto Innovation Inc. 's 2. 60β — meaning ONTO is approximately 69% more volatile than CGNX relative to the S&P 500. On balance sheet safety, Onto Innovation Inc. (ONTO) carries a lower debt/equity ratio of 1% versus 173% for MKS Inc. — giving it more financial flexibility in a downturn.

By revenue growth (latest reported year), MKS Inc.

(MKSI) is pulling ahead at 9. 6% versus 1. 8% for Onto Innovation Inc. (ONTO). On earnings-per-share growth, the picture is similar: IPG Photonics Corporation grew EPS 117. 8% year-over-year, compared to -31. 5% for Onto Innovation Inc.. Over a 3-year CAGR, NOVT leads at 4. 4% annualised revenue growth. Higher growth typically commands a higher valuation multiple — check whether the premium P/E or P/S is justified by the growth rate using the PEG ratio.

Onto Innovation Inc.

(ONTO) is the more profitable company, earning 13. 6% net margin versus 3. 1% for IPG Photonics Corporation — meaning it keeps 13. 6% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: CGNX leads at 16. 3% versus 1. 3% for IPGP. At the gross margin level — before operating expenses — CGNX leads at 66. 9%, reflecting greater pricing power or product mix advantage. Stronger margins indicate durable pricing power, lower cost of revenue, or higher mix of software/services. They are one of the clearest signs of business quality.

The PEG ratio (forward P/E divided by expected earnings growth rate) is the most precise measure of undervaluation relative to growth potential.

By this metric, Onto Innovation Inc. (ONTO) is the more undervalued stock at a PEG of 1. 16x versus Novanta Inc. 's 11. 78x. A PEG below 1. 5 suggests fair-to-attractive pricing relative to expected growth. On forward earnings alone, MKS Inc. (MKSI) trades at 27. 3x forward P/E versus 78. 1x for IPG Photonics Corporation — 50. 8x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for IPGP: 35. 2% to $141. 25.

In this comparison, CGNX (0.

5% yield), MKSI (0. 3% yield) pay a dividend. NOVT, IPGP, ONTO do not pay a meaningful dividend and should not be held primarily for income.

For long-horizon retirement investors, Onto Innovation Inc.

(ONTO) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (+1491% 10Y return). IPG Photonics Corporation (IPGP) carries a higher beta of 1. 68 — meaning larger drawdowns in market downturns, which matters significantly when you cannot wait years for a recovery. Both have compounded well over 10 years (ONTO: +1491%, IPGP: +23. 6%), confirming both are viable long-term holds — but the lower-volatility option typically results in less emotional selling during corrections. Retirement portfolios generally favour predictability over maximum returns. Consult a financial advisor before making allocation decisions.

Both stocks operate in the Technology sector, making this a peer-level intra-sector comparison — the same macro tailwinds and headwinds will affect both.

These fundamental differences mean investors should not choose between them on a single metric — the "better stock" depends entirely on which of these characteristics aligns with your investment strategy.