Home > Comparison > Technology > COHR vs SANM
The strategic rivalry between Coherent, Inc. and Sanmina Corporation shapes the competitive landscape of the Technology sector’s Hardware, Equipment & Parts industry. Coherent operates as a laser-focused manufacturer of precision optical and laser systems, while Sanmina excels as a broad-based integrated manufacturing solutions provider. This analysis pits specialized innovation against diversified production capabilities to identify which trajectory delivers superior risk-adjusted returns for a diversified portfolio.
Table of contents
Companies Overview
Coherent, Inc. and Sanmina Corporation stand as pivotal players in the hardware and equipment sector, shaping industrial technology markets.
Coherent, Inc.: Laser Technology Pioneer
Coherent, Inc. dominates the laser technology market, generating revenue primarily through OEM Laser Sources and Industrial Lasers & Systems. Its core business revolves around designing and manufacturing advanced laser tools and precision optics. In 2022, it sharpened focus on expanding applications in microelectronics and materials processing, supported by a direct international sales force.
Sanmina Corporation: Integrated Manufacturing Leader
Sanmina Corporation anchors its market position by delivering integrated manufacturing solutions and components globally. It drives revenue from product design, assembly, and after-market services across industrial, medical, defense, and communications sectors. In 2022, Sanmina emphasized supply chain management and cloud-based manufacturing software to enhance operational efficiency.
Strategic Collision: Similarities & Divergences
Both companies operate in hardware but diverge strategically. Coherent relies on a specialized product portfolio in laser technologies, while Sanmina pursues a broad integrated manufacturing model. Their primary battleground is the industrial tech supply chain, yet Coherent’s niche focus contrasts with Sanmina’s diversified services. These distinctions create unique risk and growth profiles for investors assessing each firm.
Income Statement Comparison
This data dissects the core profitability and scalability of both corporate engines to reveal who dominates the bottom line:
| Metric | Coherent, Inc. (COHR) | Sanmina Corporation (SANM) |
|---|---|---|
| Revenue | 5.81B | 8.13B |
| Cost of Revenue | 3.75B | 7.41B |
| Operating Expenses | 1.51B | 362M |
| Gross Profit | 2.06B | 716M |
| EBITDA | 1.11B | 463M |
| EBIT | 552M | 344M |
| Interest Expense | 243M | 4.3M |
| Net Income | 49M | 246M |
| EPS | -0.52 | 4.56 |
| Fiscal Year | 2025 | 2025 |
Income Statement Analysis: The Bottom-Line Duel
This income statement comparison reveals which company converts revenue into profit with greater efficiency and momentum.
Coherent, Inc. Analysis
Coherent’s revenue climbed from 3.1B in 2021 to 5.8B in 2025, showing robust growth. Gross margin stands strong at 35.4%, signaling healthy production efficiency. Despite a slight net margin of 0.85%, Coherent sharply improved EBIT by 348% in the latest year, reflecting accelerating operational leverage and margin recovery.
Sanmina Corporation Analysis
Sanmina’s revenue expanded steadily from 6.7B in 2021 to 8.1B in 2025. Its gross margin remains low at 8.8%, indicating tight cost control challenges. The net margin of 3.03% outperforms Coherent’s but EBIT slightly declined last year. Sanmina’s modest EPS growth of 14% suggests stable but less dynamic profitability.
Margin Strength vs. Revenue Expansion
Coherent exhibits superior margin expansion and operational momentum, albeit with a thinner net margin and recent profitability swings. Sanmina generates steadier net profits with less margin volatility but slower growth. Investors seeking growth-driven efficiency may favor Coherent, while those preferring consistent profitability might lean toward Sanmina’s conservative profile.
Financial Ratios Comparison
These vital ratios act as a diagnostic tool to expose the underlying fiscal health, valuation premiums, and capital efficiency of the companies compared below:
| Ratios | Coherent, Inc. (COHR) | Sanmina Corporation (SANM) |
|---|---|---|
| ROE | 0.61% | 10.45% |
| ROIC | 1.31% | 9.04% |
| P/E | 280x | 25.59x |
| P/B | 1.70 | 2.67 |
| Current Ratio | 2.19 | 1.72 |
| Quick Ratio | 1.39 | 1.02 |
| D/E | 0.48 | 0.17 |
| Debt-to-Assets | 26.11% | 6.73% |
| Interest Coverage | 2.26x | 82.53x |
| Asset Turnover | 0.39 | 1.39 |
| Fixed Asset Turnover | 3.09 | 11.91 |
| Payout ratio | 23.17% | 0% |
| Dividend yield | 0.08% | 0% |
| Fiscal Year | 2025 | 2025 |
Efficiency & Valuation Duel: The Vital Signs
Ratios act as a company’s DNA, uncovering hidden risks and operational strengths that shape investor confidence and valuation.
Coherent, Inc.
Coherent displays weak profitability with a 0.61% ROE and razor-thin margins, signaling operational challenges. Its P/E ratio at 280x reveals a highly stretched valuation. The company pays a minimal 0.08% dividend yield, relying heavily on R&D investment (10% of revenue) to fuel future growth rather than returning cash to shareholders.
Sanmina Corporation
Sanmina boasts healthier profitability with a 10.45% ROE and moderate margins, though net margin remains subdued at 3%. Its P/E of 25.6x is more reasonable but still elevated versus sector averages. Sanmina offers no dividends, instead generating strong free cash flow and reinvesting in modest R&D to balance growth and shareholder value.
Operational Efficiency Trumps Valuation Stretch
Sanmina delivers a superior balance of operational efficiency and valuation discipline compared to Coherent’s expensive, underperforming profile. Investors favoring steady profitability and moderate valuations may find Sanmina’s metrics more aligned with prudent risk-reward. Coherent fits those betting on innovation despite high valuation risks.
Which one offers the Superior Shareholder Reward?
Coherent, Inc. (COHR) pays a modest dividend yield of 0.08%, backed by a 23% payout ratio and modest free cash flow coverage at 30%. Its buyback activity appears limited but steady, showing discipline amid recent profitability variability. Sanmina Corporation (SANM) pays no dividend, instead channeling 76% of operating cash flow into free cash flow, signaling aggressive reinvestment and a robust buyback program. Historically, SANM’s higher operating and free cash flow margins support sustainable capital return through buybacks rather than dividends. I judge SANM’s total shareholder return model more sustainable and superior for 2026 investors prioritizing growth and capital appreciation over immediate income.
Comparative Score Analysis: The Strategic Profile
The radar chart reveals the fundamental DNA and trade-offs of Coherent, Inc. and Sanmina Corporation, highlighting their financial strengths and valuation nuances:
Coherent shows balanced cash flow and asset efficiency, scoring moderately in DCF (3) and ROA (3), but lags in valuation with a very unfavorable P/E score (1). Sanmina excels in ROE (3) and ROA (3), indicating efficient profit generation and asset use, but carries a weak debt profile (Debt/Equity score 1). Coherent maintains a more balanced leverage position, while Sanmina relies heavily on operational efficiency despite financial risk.
Bankruptcy Risk: Solvency Showdown
Coherent’s Altman Z-Score of 4.14 places it comfortably in the safe zone, suggesting strong long-term survival prospects. Sanmina’s 1.78 score signals distress risk, highlighting vulnerability in this cycle:
Financial Health: Quality of Operations
Coherent’s Piotroski F-Score of 7 indicates robust financial health and operational quality. Sanmina’s score of 5 is average, which may signal some internal weaknesses compared to its peer:
How are the two companies positioned?
This section dissects Coherent and Sanmina’s operational DNA by comparing their revenue distribution and internal dynamics. The goal is to confront their economic moats to reveal which model offers a more resilient, sustainable advantage today.
Revenue Segmentation: The Strategic Mix
The following visual comparison dissects how Coherent, Inc. and Sanmina Corporation diversify their income streams and where their primary sector bets lie:
Coherent anchors its revenue in two segments: Lasers at $1.43B and Materials at $954M in 2025, showing moderate diversification. Sanmina pivots heavily on its IMS segment, generating $6.51B versus $1.62B from CPS Third Party Revenue, signaling concentration risk but also infrastructure dominance in electronics manufacturing. Coherent’s balanced mix reduces volatility, while Sanmina’s scale in IMS could leverage ecosystem lock-in despite segment dependency.
Strengths and Weaknesses Comparison
This table compares the strengths and weaknesses of Coherent, Inc. and Sanmina Corporation based on diversification, profitability, financial health, innovation, global presence, and market share:
Coherent, Inc. Strengths
- Diversified revenue streams in Lasers and Materials segments
- Favorable liquidity ratios indicate strong short-term financial health
- Moderate debt levels support balanced capital structure
- Significant North American and European market presence
- Consistent fixed asset turnover suggests efficient asset use
Sanmina Corporation Strengths
- Diversified revenue with strong IMS and CPS segments
- Favorable profitability: neutral ROE and ROIC near WACC
- Very strong interest coverage ratio reduces default risk
- Broad geographic reach across Americas, Asia Pacific, and EMEA
- High asset turnover reflects operational efficiency
Coherent, Inc. Weaknesses
- Low profitability metrics: net margin, ROE, and ROIC well below WACC
- High P/E ratio suggests overvaluation risk
- Asset turnover below industry norms limits revenue generation
- Minimal dividend yield reduces income appeal
- Slightly unfavorable overall financial ratios
Sanmina Corporation Weaknesses
- Net margin remains low, indicating margin pressure
- P/E ratio still relatively high for sector standards
- Zero dividend yield may deter income-focused investors
- Neutral valuation metrics imply limited market premium
Coherent’s strengths lie in its stable liquidity and asset management, but profitability remains a persistent challenge. Sanmina demonstrates stronger operational efficiency and financial stability, though margin expansion and shareholder returns could improve. Both companies exhibit diversified revenue and global reach that underpin strategic resilience.
The Moat Duel: Analyzing Competitive Defensibility
A structural moat is the only thing protecting long-term profits from the erosion of competition. Here’s how Coherent, Inc. and Sanmina Corporation stack up:
Coherent, Inc.: Intangible Assets and Specialized Laser Technology
Coherent’s moat stems from proprietary laser tech and precision optics, reflected in strong gross margins near 35%. However, its ROIC has plunged sharply, signaling weakening value creation in 2026.
Sanmina Corporation: Cost Advantage and Integrated Manufacturing Scale
Sanmina leverages scale and supply chain integration to maintain moderate margins around 9%. Its ROIC hovers just below cost of capital, showing slight value erosion but better capital efficiency than Coherent.
Verdict: Specialized Technology vs. Scale Efficiency
Coherent’s deep tech moat is undermined by declining ROIC, while Sanmina’s cost advantage sustains modest capital returns. Sanmina holds the wider moat today, better equipped to defend market share amid industry pressures.
Which stock offers better returns?
Over the past year, Coherent, Inc. and Sanmina Corporation exhibited markedly different price trajectories, with Coherent showing strong gains and accelerating momentum while Sanmina faced recent declines amid decelerating growth.
Trend Comparison
Coherent, Inc. recorded a robust 232.26% price increase over the last 12 months, confirming a bullish trend with accelerating momentum and a high volatility level (37.42 std dev). The stock hit a peak of 212.18 and a low of 49.26, reflecting wide price swings.
Sanmina Corporation gained 118.44% over the same period, maintaining a bullish trend but with deceleration. Its price volatility is lower at 31.84 std dev, with a high of 177.83 and a low of 57.79. Recent months show a negative 11.65% change, indicating short-term weakness.
Comparing the two, Coherent, Inc. outperformed Sanmina, delivering the highest market returns with sustained acceleration, despite greater price volatility.
Target Prices
Analysts show a generally bullish consensus for Coherent, Inc. and Sanmina Corporation.
| Company | Target Low | Target High | Consensus |
|---|---|---|---|
| Coherent, Inc. | 190 | 235 | 210 |
| Sanmina Corporation | 200 | 200 | 200 |
Coherent’s consensus target of 210 sits near its current price of 212, suggesting limited upside. Sanmina’s target at 200 implies a potential 41% gain from its 142 current price, indicating strong analyst optimism.
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How do institutions grade them?
Coherent, Inc. Grades
Here are the recent reliable institutional grades for Coherent, Inc.:
| Grading Company | Action | New Grade | Date |
|---|---|---|---|
| Morgan Stanley | Maintain | Equal Weight | 2026-01-30 |
| Citigroup | Maintain | Buy | 2026-01-26 |
| Susquehanna | Maintain | Positive | 2026-01-22 |
| Stifel | Maintain | Buy | 2026-01-22 |
| Barclays | Maintain | Overweight | 2026-01-15 |
| Morgan Stanley | Maintain | Equal Weight | 2025-12-17 |
| JP Morgan | Maintain | Overweight | 2025-12-05 |
| Barclays | Maintain | Overweight | 2025-11-07 |
| Needham | Maintain | Buy | 2025-11-06 |
| Morgan Stanley | Maintain | Equal Weight | 2025-11-06 |
Sanmina Corporation Grades
Here are the recent reliable institutional grades for Sanmina Corporation:
| Grading Company | Action | New Grade | Date |
|---|---|---|---|
| Argus Research | Maintain | Buy | 2026-01-28 |
| B of A Securities | Maintain | Neutral | 2025-07-11 |
| B of A Securities | Maintain | Neutral | 2025-06-09 |
| B of A Securities | Upgrade | Neutral | 2025-01-29 |
| Craig-Hallum | Maintain | Hold | 2024-11-05 |
| Craig-Hallum | Downgrade | Hold | 2024-04-30 |
| Sidoti & Co. | Upgrade | Buy | 2022-11-08 |
| Sidoti & Co. | Upgrade | Buy | 2022-11-07 |
| Sidoti & Co. | Downgrade | Neutral | 2022-10-31 |
| Sidoti & Co. | Downgrade | Neutral | 2022-10-30 |
Which company has the best grades?
Coherent, Inc. consistently receives Buy and Overweight grades from major banks, signaling stronger institutional confidence. Sanmina shows more Neutral and Hold ratings with fewer Buy recommendations, indicating a more cautious outlook. Investors may interpret Coherent’s grades as a sign of relatively higher conviction by analysts.
Risks specific to each company
The following categories identify critical pressure points and systemic threats facing both firms in the 2026 market environment:
1. Market & Competition
Coherent, Inc.
- Faces high competition in laser technologies with premium pricing risk due to a lofty P/E of 280.
Sanmina Corporation
- Competes in integrated manufacturing with broader diversification but faces margin pressure at 3% net margin.
2. Capital Structure & Debt
Coherent, Inc.
- Moderate leverage (D/E 0.48), manageable debt-to-assets (26%), and average interest coverage (2.27x).
Sanmina Corporation
- Lower leverage (D/E 0.17) and strong interest coverage (80x) suggest superior financial stability.
3. Stock Volatility
Coherent, Inc.
- High beta at 1.835 indicates elevated price volatility and market sensitivity.
Sanmina Corporation
- Beta near 1.05 reflects market-level volatility, offering steadier price behavior.
4. Regulatory & Legal
Coherent, Inc.
- Exposure to export controls on laser tech could limit market access, a key risk in tech hardware.
Sanmina Corporation
- Faces regulatory scrutiny in defense and aerospace manufacturing, but diversified end markets mitigate impact.
5. Supply Chain & Operations
Coherent, Inc.
- Dependent on precision optics suppliers; supply chain disruptions could hamper production.
Sanmina Corporation
- Complex global supply chains in electronics manufacturing increase operational risk but benefit from scale.
6. ESG & Climate Transition
Coherent, Inc.
- Moderate ESG focus; industry pressure to reduce energy consumption in manufacturing processes.
Sanmina Corporation
- Increasing ESG initiatives in manufacturing and logistics; climate transition poses moderate capital expenditure demands.
7. Geopolitical Exposure
Coherent, Inc.
- Significant international sales expose it to trade tensions and tariff risks.
Sanmina Corporation
- Global footprint in defense and automotive sectors adds geopolitical complexity but with some risk diversification.
Which company shows a better risk-adjusted profile?
Coherent’s most impactful risk lies in its high stock volatility and stretched valuation, which intensifies downside in a market correction. Sanmina’s critical risk is its weaker Altman Z-score in the distress zone, signaling financial vulnerability despite operational strength. Overall, Sanmina presents a better risk-adjusted profile due to stronger balance sheet metrics and lower volatility, although its financial health needs close monitoring given its borderline distress score.
Final Verdict: Which stock to choose?
Coherent, Inc. (COHR) excels as a cash generator with impressive revenue growth and operational improvements fueling a bullish momentum. However, its declining profitability and value destruction are points of vigilance. It suits aggressive growth portfolios willing to navigate short-term earnings volatility for long-term expansion.
Sanmina Corporation (SANM) offers a strategic moat through operational efficiency and strong capital discipline, supported by a solid balance sheet and safer financial ratios. It presents a more stable profile relative to COHR, fitting growth-at-a-reasonable-price (GARP) investors focused on income quality and risk management.
If you prioritize high-growth potential with tolerance for profit margin pressures, COHR outshines as the compelling choice due to its accelerating top-line and cash flow trajectory. However, if you seek better stability and operational safety, SANM offers superior financial resilience and a more balanced risk-reward tradeoff. Both present analytical scenarios for distinct investor avatars.
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 Sanmina Corporation to enhance your investment decisions:
