Investors seeking opportunities in advanced hardware technologies often consider companies leading innovation in laser systems and 3D sensing. Coherent, Inc. (COHR) and Ouster, Inc. (OUST) both operate within the hardware, equipment, and parts industry, yet focus on distinct cutting-edge solutions—laser-based systems versus digital lidar sensors. Comparing their market strategies, technological strengths, and growth prospects will help you identify which company offers the most compelling investment potential in 2026.
Table of contents
Companies Overview
I will begin the comparison between Coherent, Inc. and Ouster, Inc. by providing an overview of these two companies and their main differences.
Coherent, Inc. Overview
Coherent, Inc. provides lasers, laser-based technologies, and system solutions for commercial, industrial, and scientific applications. It operates two segments: OEM Laser Sources and Industrial Lasers & Systems. Founded in 1966 and headquartered in Santa Clara, CA, Coherent serves markets including microelectronics, materials processing, and scientific research. The company is a subsidiary of II-VI Incorporated and has a market cap of $29.5B.
Ouster, Inc. Overview
Ouster, Inc. designs and manufactures high-resolution digital lidar sensors and software for 3D vision applications in machinery, vehicles, robots, and infrastructure. Based in San Francisco, CA, and founded recently, Ouster operates in the technology sector with a market cap of $1.6B. It focuses on two sensor types: scanning lidar and solid-state flash lidar, serving emerging autonomous and robotics markets.
Key similarities and differences
Both companies operate in the technology sector within the hardware, equipment, and parts industry. Coherent emphasizes laser technologies across diverse industrial and scientific fields with a large-scale operation, while Ouster specializes in lidar sensors aimed at autonomous and robotic applications with a smaller workforce. Coherent’s long history contrasts with Ouster’s recent market entry, reflecting different stages of business maturity and market focus.
Income Statement Comparison
The following table presents a side-by-side comparison of the most recent fiscal year income statement metrics for Coherent, Inc. and Ouster, Inc., providing insight into their financial performance.
| Metric | Coherent, Inc. (COHR) | Ouster, Inc. (OUST) |
|---|---|---|
| Market Cap | 29.5B | 1.63B |
| Revenue | 5.81B | 111.1M |
| EBITDA | 1.11B | -79.9M |
| EBIT | 552M | -94.7M |
| Net Income | 49.4M | -97.0M |
| EPS | -0.52 | -2.08 |
| Fiscal Year | 2025 | 2024 |
Income Statement Interpretations
Coherent, Inc.
Coherent, Inc. has shown strong revenue growth of 23.4% in the most recent year, reaching $5.81B, with gross margin stable at 35.4%. EBIT margin remained neutral at 9.5%, while net income turned positive to $49.4M after previous losses. Despite an overall net income decline over five years, recent margin improvements and significant EBIT growth reflect a recovery phase.
Ouster, Inc.
Ouster, Inc. reported a 33.4% revenue increase to $111.1M in 2024, with a favorable gross margin of 36.4%. However, EBIT and net margins remain deeply negative at -85.2% and -87.3%, respectively. The company improved profitability metrics significantly year-over-year, including a net income reduction in losses to -$97M, indicating progress but ongoing unprofitability.
Which one has the stronger fundamentals?
Coherent boasts a larger scale with stable margins and a positive turnaround in net income, while Ouster exhibits faster revenue growth and improving margins but remains unprofitable with heavy losses. Coherent’s overall income statement shows a more balanced profile, whereas Ouster’s rapid growth contrasts with persistent negative earnings, reflecting higher operational risk.
Financial Ratios Comparison
The table below presents a side-by-side comparison of key financial ratios for Coherent, Inc. and Ouster, Inc. based on their most recent fiscal year data.
| Ratios | Coherent, Inc. (COHR) FY 2025 | Ouster, Inc. (OUST) FY 2024 |
|---|---|---|
| ROE | 0.61% | -53.64% |
| ROIC | 1.31% | -50.84% |
| P/E | 279.8 | -5.87 |
| P/B | 1.70 | 3.15 |
| Current Ratio | 2.19 | 2.80 |
| Quick Ratio | 1.39 | 2.59 |
| D/E (Debt-to-Equity) | 0.48 | 0.11 |
| Debt-to-Assets | 26.1% | 7.3% |
| Interest Coverage | 2.26 | -57.15 |
| Asset Turnover | 0.39 | 0.40 |
| Fixed Asset Turnover | 3.09 | 4.54 |
| Payout ratio | 23.2% | 0% |
| Dividend yield | 0.08% | 0% |
Interpretation of the Ratios
Coherent, Inc.
Coherent, Inc. shows a mixed ratio profile with favorable liquidity and leverage ratios, including a current ratio of 2.19 and debt-to-assets at 26.11%, indicating solid short-term financial health and moderate leverage. However, profitability metrics like net margin (0.85%), ROE (0.61%), and ROIC (1.31%) are weak, raising concerns over operational efficiency. The company does not pay dividends, reflecting a possible reinvestment strategy or growth focus.
Ouster, Inc.
Ouster, Inc. exhibits several unfavorable profitability ratios, such as a net margin of -87.35% and ROE of -53.64%, signaling poor earnings performance. Its liquidity ratios are strong, with a current ratio of 2.8, and debt levels remain low at 7.33% of assets. The absence of dividends aligns with its negative net income and probable emphasis on R&D and expansion phases typical for a tech hardware startup.
Which one has the best ratios?
Coherent, Inc. presents a slightly unfavorable overall ratio profile but benefits from better profitability and more balanced leverage than Ouster, Inc., which suffers from deeply negative returns and earnings. Both companies maintain strong liquidity, yet Coherent’s ratios suggest a more stable operational footing, while Ouster’s reflect higher risk typical of a younger, growth-focused firm.
Strategic Positioning
This section compares the strategic positioning of Coherent, Inc. and Ouster, Inc. based on Market position, Key segments, and Exposure to technological disruption:
Coherent, Inc.
- Large market cap of 29.5B, established with competitive pressure in laser technology
- Operates in two main segments: Lasers (1.43B) and Materials (954M), serving diverse industrial applications
- Exposure to laser and optics technology, reliant on established industrial and scientific markets
Ouster, Inc.
- Smaller market cap of 1.6B, newer player in lidar sensor market with higher volatility
- Focused on high-resolution digital lidar sensors and software, single reportable segment of 111M
- Engaged in advanced lidar technology, facing evolving demands in 3D vision and sensor innovation
Coherent, Inc. vs Ouster, Inc. Positioning
Coherent shows a diversified business across lasers and materials with a large market presence, while Ouster concentrates on lidar sensors with a smaller scale. Coherent’s broad industrial focus contrasts with Ouster’s specialized technological niche, posing distinct operational advantages and risks.
Which has the best competitive advantage?
Both companies are currently shedding value as ROIC is below WACC. Coherent’s declining profitability rates it very unfavorable, whereas Ouster’s improving ROIC trend places it slightly unfavorable, indicating better potential for competitive advantage.
Stock Comparison
The stock price movements over the past year reveal strong bullish trends for both Coherent, Inc. and Ouster, Inc., with significant price gains and varying trading dynamics reflecting differing momentum and volume patterns.
Trend Analysis
Coherent, Inc. shows a bullish trend with a 222.85% price increase over the past 12 months, marked by accelerating growth and a high volatility level with a 34.26 standard deviation.
Ouster, Inc. exhibits a bullish trend as well, with a 404.84% rise in stock price over the year, although its growth shows deceleration and lower volatility at a standard deviation of 8.61.
Comparing the two, Ouster, Inc. has delivered the highest market performance with a 404.84% increase, surpassing Coherent, Inc.’s 222.85% gain over the same period.
Target Prices
Analysts provide a clear consensus on target prices for Coherent, Inc. and Ouster, Inc., reflecting their market outlooks.
| Company | Target High | Target Low | Consensus |
|---|---|---|---|
| Coherent, Inc. | 210 | 135 | 175 |
| Ouster, Inc. | 39 | 33 | 36.67 |
The target consensus for Coherent, Inc. at 175 is slightly below its current price of 190.03, indicating cautious optimism. For Ouster, Inc., the consensus target of 36.67 significantly exceeds the current price of 27.11, suggesting potential upside according to analysts.
Analyst Opinions Comparison
This section compares analysts’ ratings and grades for Coherent, Inc. and Ouster, Inc.:
Rating Comparison
Coherent, Inc. Rating
- Rating: B- with a very favorable status.
- Discounted Cash Flow Score: 3, moderate status.
- ROE Score: 2, moderate status.
- ROA Score: 3, moderate status.
- Debt To Equity Score: 2, moderate status.
- Overall Score: 2, moderate status.
Ouster, Inc. Rating
- Rating: C- with a very favorable status.
- Discounted Cash Flow Score: 1, very unfavorable.
- ROE Score: 1, very unfavorable.
- ROA Score: 1, very unfavorable.
- Debt To Equity Score: 3, moderate status.
- Overall Score: 1, very unfavorable.
Which one is the best rated?
Based strictly on the provided data, Coherent, Inc. holds better ratings and scores across most financial metrics, indicating a generally stronger financial standing than Ouster, Inc.
Scores Comparison
Here is a comparison of the Altman Z-Score and Piotroski Score for both companies:
Coherent, Inc. Scores
- Altman Z-Score: 3.70, indicating a safe zone from bankruptcy risk.
- Piotroski Score: 7, reflecting strong financial health.
Ouster, Inc. Scores
- Altman Z-Score: 3.66, also indicating a safe zone.
- Piotroski Score: 4, reflecting average financial health.
Which company has the best scores?
Coherent, Inc. and Ouster, Inc. both show Altman Z-Scores in the safe zone, but Coherent has a higher Piotroski Score, indicating comparatively stronger financial health. Ouster shows average strength on the Piotroski scale.
Grades Comparison
Here is a detailed comparison of the recent grades assigned to Coherent, Inc. and Ouster, Inc.:
Coherent, Inc. Grades
The table below summarizes recent grades from reputable financial institutions for Coherent, Inc.:
| Grading Company | Action | New Grade | Date |
|---|---|---|---|
| Morgan Stanley | Maintain | Equal Weight | 2025-12-17 |
| JP Morgan | Maintain | Overweight | 2025-12-05 |
| Barclays | Maintain | Overweight | 2025-11-07 |
| Morgan Stanley | Maintain | Equal Weight | 2025-11-06 |
| Stifel | Maintain | Buy | 2025-11-06 |
| Rosenblatt | Maintain | Buy | 2025-11-06 |
| Needham | Maintain | Buy | 2025-11-06 |
| Susquehanna | Maintain | Positive | 2025-10-22 |
| Barclays | Maintain | Overweight | 2025-10-20 |
| Rosenblatt | Maintain | Buy | 2025-10-14 |
Coherent, Inc. consistently receives positive ratings, mostly “Buy” and “Overweight,” indicating steady confidence from analysts.
Ouster, Inc. Grades
The table below summarizes recent grades from reputable financial institutions for Ouster, Inc.:
| Grading Company | Action | New Grade | Date |
|---|---|---|---|
| Cantor Fitzgerald | Upgrade | Overweight | 2025-11-07 |
| Cantor Fitzgerald | Upgrade | Overweight | 2025-11-06 |
| WestPark Capital | Maintain | Buy | 2025-11-05 |
| Rosenblatt | Maintain | Buy | 2025-11-05 |
| WestPark Capital | Upgrade | Buy | 2025-08-13 |
| Oppenheimer | Maintain | Outperform | 2025-07-16 |
| WestPark Capital | Downgrade | Hold | 2025-06-12 |
| WestPark Capital | Upgrade | Buy | 2025-05-09 |
| Rosenblatt | Maintain | Buy | 2025-03-21 |
| Cantor Fitzgerald | Maintain | Overweight | 2025-03-21 |
Ouster, Inc.’s grades show a mix of upgrades and downgrades but predominantly lean toward “Buy” and “Overweight,” reflecting a generally positive outlook with some variability.
Which company has the best grades?
Coherent, Inc. has received a higher volume of consistent “Buy” and “Overweight” grades compared to Ouster, Inc., which shows more grade fluctuations. This steadier confidence in Coherent may influence investor perceptions of stability and growth potential.
Strengths and Weaknesses
Below is a comparison of key strengths and weaknesses of Coherent, Inc. (COHR) and Ouster, Inc. (OUST) based on the most recent financial and strategic data.
| Criterion | Coherent, Inc. (COHR) | Ouster, Inc. (OUST) |
|---|---|---|
| Diversification | Strong diversification with two major segments: Lasers ($1.43B) and Materials ($954M) in 2025 | Limited diversification, mainly one reportable segment ($111M in 2024) |
| Profitability | Unfavorable profitability metrics: ROIC 1.31% < WACC 11.53%, net margin 0.85% | Negative profitability: ROIC -50.84%, net margin -87.35%, but improving ROIC trend |
| Innovation | Moderate innovation reflected in stable laser and materials technologies, but declining ROIC | High innovation potential in lidar technology with growing ROIC, despite current losses |
| Global presence | Established global market with significant sales in mature segments | Emerging global presence but smaller scale and market penetration |
| Market Share | Larger market share in laser and materials markets | Niche player with growing market share in lidar sector |
Key takeaways: Coherent, Inc. benefits from strong diversification and established market presence but struggles with profitability and value creation. Ouster, Inc. shows promising innovation and improving profitability trends, although it remains unprofitable and less diversified. Investors should weigh Coherent’s stability against Ouster’s growth potential and higher risk.
Risk Analysis
Below is a comparative table highlighting key risk metrics for Coherent, Inc. (COHR) and Ouster, Inc. (OUST) as of the most recent fiscal years:
| Metric | Coherent, Inc. (COHR) | Ouster, Inc. (OUST) |
|---|---|---|
| Market Risk | Beta 1.835 (moderate volatility) | Beta 2.935 (high volatility) |
| Debt level | Debt-to-Equity 0.48 (favorable) | Debt-to-Equity 0.11 (favorable) |
| Regulatory Risk | Moderate, in tech hardware sector | Moderate, lidar technology regulations evolving |
| Operational Risk | Moderate, large workforce (26K employees) | High, smaller scale (292 employees) and newer IPO |
| Environmental Risk | Moderate; manufacturing lasers involves energy use | Moderate; lidar tech has limited direct environmental impact |
| Geopolitical Risk | US-based, global sales exposure | US-based, emerging global markets exposure |
Coherent shows moderate operational and market risks but benefits from solid debt management and financial stability. Ouster faces higher market volatility and operational risks due to smaller scale and negative profitability metrics. The most impactful risks are Ouster’s volatile market behavior and deep operating losses, while Coherent’s high P/E ratio signals valuation risk despite stable fundamentals.
Which Stock to Choose?
Coherent, Inc. (COHR) shows favorable income growth with a 23.4% revenue increase in 2025 and solid gross margin at 35.4%. Its financial ratios are slightly unfavorable overall, with positive liquidity and manageable debt, but low profitability and a high P/E ratio. The company’s rating is very favorable (B-), supported by a safe Altman Z-Score and a strong Piotroski Score, yet its economic moat is very unfavorable due to declining ROIC below WACC.
Ouster, Inc. (OUST) presents strong revenue growth at 33.4% in 2024 and an improving income statement, though profitability remains negative. Financial ratios lean unfavorable, despite good liquidity and low debt. Its rating is very favorable (C-), with a safe Altman Z-Score but only an average Piotroski Score. The company’s moat is slightly unfavorable, reflecting value destruction but an improving ROIC trend.
Investors focused on growth and improving profitability might find Ouster’s upward income and ROIC trends appealing, while those prioritizing financial stability and stronger rating scores could view Coherent’s consistent liquidity and quality scores more favorably. The choice could depend on an investor’s risk tolerance and preference for either a recovering growth profile or a more established financial footing.
Disclaimer: Investment carries a risk of loss of initial capital. The past performance is not a reliable indicator of future results. Be sure to understand risks before making an investment decision.
Go Further
I encourage you to read the complete analyses of Coherent, Inc. and Ouster, Inc. to enhance your investment decisions:
