IPGP vs LASR: Which Is the Better Buy in 2026?

Same yardstick, side by side (as of October 2026). Valuation lined up like this is most meaningful for two names in the same corner of the market, which these are. Figures are approximate; verify before investing.

Reading it: IPGP is the cheaper of the two on forward earnings, but cheaper is not the same as better. Pair the valuation with growth (how far the forward P/E sits below the trailing P/E) and risk (beta) before you decide.

The metrics above tell you which is the marginally better business. The bigger risk for most people is not picking the slightly worse stock, it is over-concentrating. IPGP and LASR share themes, so owning both, or adding either to what you already hold, can quietly push a large share of your portfolio into one bet.

This is the part a generic comparison page cannot answer, because it depends on what you own. Connect your brokerage and Walnut shows your real, combined IPGP and LASR exposure, flags overlap with your existing positions, and tells you if adding one would tip you past a concentration you are comfortable with, read-only by default, with your login staying at your broker. Walnut is not an investment adviser.

IPG Photonics designs and builds fiber lasers, amplifiers and complete laser systems, and it is unusually vertically integrated: it makes its own semiconductor diodes, specialty fiber and optical components rather than buying them. That integration is what let it undercut older laser technologies on cost and reliability two decades ago. Revenue is reported in two segments. Industrial Solutions, about 85% of sales, supplies lasers that fabricators, carmakers, battery makers and general manufacturers use to cut, weld, clean, mark and 3D-print metal. Advanced Solutions covers medical, micromachining, scientific and defense work, including the CROSSBOW counter-drone laser system sold under the IPG Defense name. The company earns money mainly on equipment sales to machine builders and end users, plus a smaller stream of service, parts and accessories.

Full IPGP guide

nLIGHT, Inc. (Nasdaq: LASR) designs and manufactures high-power semiconductor and fiber lasers for three broad markets: aerospace and defense (directed-energy weapons, optical sensing), advanced manufacturing (industrial cutting, welding, additive), and microfabrication. Historically the company leaned on commercial industrial-laser sales, a competitive and cyclical business, but the growth engine has decisively shifted to defense, where nLIGHT supplies high-energy laser systems and beam-control technology to US Army and Navy programs. The company is based in Vancouver, Washington and books a large share of revenue from US government and prime-contractor programs.

Full LASR guide

Both fit overlapping themes, but they are not interchangeable. The useful comparison is which set of drivers and risks you want exposure to.

• IPGP drivers: Industrial demand recovery; Emerging growth products.
• LASR drivers: Directed-energy defense demand; Product scaling and new platforms.

A faster-growing, richer-valued name usually swings harder, so it suits a longer horizon and a higher tolerance for volatility; a steadier, more cash-generative business suits a more conservative or income-minded investor. The honest test is which set of risks you could hold through a drawdown: The biggest risk is the industrial capital-spending cycle. For LASR, valuation is the dominant risk: even after the autumn 2026 sell-off the stock trades at roughly 6.3x trailing sales and a high forward earnings multiple, the stock is priced for sustained rapid growth, so any deceleration in defense orders could compress the multiple sharply.

Growth-minded investors who believe the theme has years to run tend to accept the richer multiple for more upside; value-minded investors lean toward the cheaper forward earnings and steadier profile. Pick IPGP if you believe its drivers more; LASR if you believe its. Many investors hold both, but since they share themes, that is a concentrated bet, not diversification. Decide deliberately and check overlap. For the full detail, see the IPGP and LASR guides.

IPGP. Analysts expect about $1.12 billion of revenue and roughly $1.86 of adjusted EPS for 2026, rising to about $1.22 billion and $2.31 in 2027. At about $71 a share that is under 3 times sales and roughly 31 times forward earnings, while the trailing GAAP P/E is above 100 because reported profit is thin. Cash and short-term investments cover close to 30% of the market value. The valuation therefore rests on margins recovering toward historical levels, not on current GAAP earnings. The stock sits near its 52-week low of about $69 after peaking near $156.

LASR. As of October 16, 2026, nLIGHT's market cap of roughly ~$2.0 billion is about 6.3x its ~$311 million of trailing revenue, down from roughly 15x in May before supply-chain problems clouded the second half of 2026. The company is near breakeven on a GAAP basis (a trailing net loss of about $12.5 million) and holds about $330 million of cash with little debt, so the premium still rests on directed-energy growth, including the JLWS award, rather than current earnings. Third-quarter results are due November 5, 2026.

Headline figures (approximate, October 2026): IPGP shows revenue (ttm) ~$1.07 billion, q2 2026 revenue ~$278.6 million (up ~11% YoY), q2 2026 eps $0.12 GAAP, ~$0.58 adjusted, gross margin (q2 2026) ~40.4% GAAP (37.3% a year earlier); LASR shows revenue (ttm) ~$311M, revenue growth (q2 2026, yoy) ~34%, q3 2026 revenue guidance $63-73M (supply-constrained), gross margin (ttm) ~31.5%.

IPGP and LASR are related but distinct: same themes, different businesses and risks. Neither wins in the abstract; the right pick is whichever thesis you actually believe, sized so you are not over-concentrated in one theme. Walnut can show your combined IPGP and LASR exposure against your real portfolio. It is not an investment adviser.