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Richtech Robotics vs. Coherent: Which Tech Stock Offers Better Growth?
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Key Takeaways
COHR delivered double-digit revenue growth and massive operating income gains.
COHR's 800G adoption, 1.6T uptake and higher InP yields are expanding capacity and supporting growth.
RR's shift to a RaaS model cut revenues but lifted margins, while rising G&A costs widened its quarterly loss.
Both Richtech Robotics Inc. (RR - Free Report) and Coherent Corp. (COHR - Free Report) are advanced hardware innovation companies. While RR develops robots for business applications, COHR focuses on engineered materials, lasers and optoelectronics used in industrial, communications and semiconductor applications.
Let us delve deeper to find out which tech stock presents a compelling growth opportunity.
The Case for Coherent
COHR registered a 17.3% year-over-year rise and 3.4% sequential growth in its top line in the first quarter of fiscal 2026, fueled by strong demand from AI-related datacenters and communications. The company managed to boost its operating income 244.5% year over year and 4147.5% sequentially on the back of prudent expense management.
This disproportionate growth in revenues and operating income reflects scalability and an efficient business model. A 40-basis-point sequential decline in research and development expenses as a percentage of top line reinforces COHR’s operating leverage.
The company witnessed a broad adoption of 800G and swift uptake of 1.6T transceivers, highlighting strong demand for its products. Management expects this demand to escalate in 2026. Furthermore, COHR experienced a high production yield of 6-inch indium phosphate (InP), significantly higher than the 3-inch InP, leading to the start of production at Jarfalla, Sweden, boosting production capacity. The company can address the rising demand for optical components through a combination of internal production of InP and external suppliers.
COHR cradles a strong balance sheet position, where it holds $875 million in cash reserves as of September 2025. A current debt of $48 million solidifies its liquidity position. Furthermore, a current ratio of 2.33 in the first quarter of fiscal 2026, significantly higher than the industry’s 1.58, highlights its ability to pay off short-term obligations easily.
The Case for Richtech Robotics
Richtech Robotics registered $1.2 million in its top line during the third quarter of fiscal 2025, which declined 18.4% from the year-ago quarter. The company took this hit as it is pivoting to a Robotics-as-a-Service (RaaS) model. Despite this setback, RR expects to gain from recurring revenues in the long run through multi-year service agreements (MSAs) rather than one-time product sales. Although revenues declined in the quarter, the company generated 74.4% in gross margin, increasing 420 basis points from the year-ago quarter, suggesting disciplined expense management.
RR’s product strategy is vital to its ability to capture the RaaS market share. Products, including ADAM and Titan 440, are instrumental to creating a landmark within the RaaS market, which is currently anticipated to see a CAGR of 17.1% through 2034 (Per Precedence Research).
The company’s cash chest, which harbors $86 million and has no current debt, solidifies its liquidity position, a cornerstone for future investments. Furthermore, a current ratio of 120.2 not only indicates RR’s robust capability to cater to short-term obligations but also positions it to seek debt funding easily.
While the future might look appealing, the company’s profitability position can put pressure on its ability to prosper within the RaaS market. In the third quarter of fiscal 2025, RR registered $4.1 million in net loss compared with the year-ago quarter’s $1.3 million. This setback was primarily due to a whopping 254.7% year-over-year rise in general and administrative expenses (G&A). It has put strain on the company’s competitive position, raising concerns around growth and profitability, and putting its strategy to pivot to a RaaS model through a test.
How Do Estimates & Valuation Compare for COHR & RR?
The Zacks Consensus Estimate for Coherent’s fiscal 2026 sales is kept at $6.7 billion, implying 15.1% year-over-year growth. For fiscal 2026, the consensus mark for EPS is set at $5.1, hinting at a 44.5% year-over-year rise. Eight EPS estimates for fiscal 2026 have moved upward in the past 60 days, with one downward revision.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for Richtech Robotics’ fiscal 2025 sales is pegged at $5 million, suggesting a 18.2% year-over-year jump. For fiscal 2025, the consensus estimate for loss per share is pinned at 15 cents, whereas it incurred a loss of 12 cents per share in the year-ago quarter. There has been no change in analyst estimates or revisions lately.
Image Source: Zacks Investment Research
In terms of valuation, Coherent is trading at a forward price-to-sales multiple of 4.2, which is above its 3-month median of 3.2. Richtech Robotics' forward price-to-sales multiple is 39.65, higher than its 3-month median of 44.91.
Image Source: Zacks Investment Research
Verdict
Coherent’s financial prowess was on display in the first quarter of fiscal 2026 on the back of demand from AI-related datacenters and communications. The company’s core business is highly efficient, providing a strong base for scalability. Its products have experienced high demand in the quarter, which is expected to increase in the future. COHR maintains a strong balance sheet position, waving a green flag for investors.
Richtech Robotics’ strategy to pivot to a RaaS model deteriorated its growth under the pretext of recurring revenues from MSAs in the future. Despite an effective product strategy and a strong balance sheet, RR’s profitability position has been compromised. A piling competitive pressure is another headwind that could affect RR’s growth and profitability balance.
Despite both stocks being fundamentally strong, Coherent appears to offer more growth prospects for investors since it is significantly cheaper than RR, providing ample room for growth.
Image: Bigstock
Richtech Robotics vs. Coherent: Which Tech Stock Offers Better Growth?
Key Takeaways
Both Richtech Robotics Inc. (RR - Free Report) and Coherent Corp. (COHR - Free Report) are advanced hardware innovation companies. While RR develops robots for business applications, COHR focuses on engineered materials, lasers and optoelectronics used in industrial, communications and semiconductor applications.
Let us delve deeper to find out which tech stock presents a compelling growth opportunity.
The Case for Coherent
COHR registered a 17.3% year-over-year rise and 3.4% sequential growth in its top line in the first quarter of fiscal 2026, fueled by strong demand from AI-related datacenters and communications. The company managed to boost its operating income 244.5% year over year and 4147.5% sequentially on the back of prudent expense management.
This disproportionate growth in revenues and operating income reflects scalability and an efficient business model. A 40-basis-point sequential decline in research and development expenses as a percentage of top line reinforces COHR’s operating leverage.
The company witnessed a broad adoption of 800G and swift uptake of 1.6T transceivers, highlighting strong demand for its products. Management expects this demand to escalate in 2026. Furthermore, COHR experienced a high production yield of 6-inch indium phosphate (InP), significantly higher than the 3-inch InP, leading to the start of production at Jarfalla, Sweden, boosting production capacity. The company can address the rising demand for optical components through a combination of internal production of InP and external suppliers.
COHR cradles a strong balance sheet position, where it holds $875 million in cash reserves as of September 2025. A current debt of $48 million solidifies its liquidity position. Furthermore, a current ratio of 2.33 in the first quarter of fiscal 2026, significantly higher than the industry’s 1.58, highlights its ability to pay off short-term obligations easily.
The Case for Richtech Robotics
Richtech Robotics registered $1.2 million in its top line during the third quarter of fiscal 2025, which declined 18.4% from the year-ago quarter. The company took this hit as it is pivoting to a Robotics-as-a-Service (RaaS) model. Despite this setback, RR expects to gain from recurring revenues in the long run through multi-year service agreements (MSAs) rather than one-time product sales. Although revenues declined in the quarter, the company generated 74.4% in gross margin, increasing 420 basis points from the year-ago quarter, suggesting disciplined expense management.
RR’s product strategy is vital to its ability to capture the RaaS market share. Products, including ADAM and Titan 440, are instrumental to creating a landmark within the RaaS market, which is currently anticipated to see a CAGR of 17.1% through 2034 (Per Precedence Research).
The company’s cash chest, which harbors $86 million and has no current debt, solidifies its liquidity position, a cornerstone for future investments. Furthermore, a current ratio of 120.2 not only indicates RR’s robust capability to cater to short-term obligations but also positions it to seek debt funding easily.
While the future might look appealing, the company’s profitability position can put pressure on its ability to prosper within the RaaS market. In the third quarter of fiscal 2025, RR registered $4.1 million in net loss compared with the year-ago quarter’s $1.3 million. This setback was primarily due to a whopping 254.7% year-over-year rise in general and administrative expenses (G&A). It has put strain on the company’s competitive position, raising concerns around growth and profitability, and putting its strategy to pivot to a RaaS model through a test.
How Do Estimates & Valuation Compare for COHR & RR?
The Zacks Consensus Estimate for Coherent’s fiscal 2026 sales is kept at $6.7 billion, implying 15.1% year-over-year growth. For fiscal 2026, the consensus mark for EPS is set at $5.1, hinting at a 44.5% year-over-year rise. Eight EPS estimates for fiscal 2026 have moved upward in the past 60 days, with one downward revision.
The Zacks Consensus Estimate for Richtech Robotics’ fiscal 2025 sales is pegged at $5 million, suggesting a 18.2% year-over-year jump. For fiscal 2025, the consensus estimate for loss per share is pinned at 15 cents, whereas it incurred a loss of 12 cents per share in the year-ago quarter. There has been no change in analyst estimates or revisions lately.
In terms of valuation, Coherent is trading at a forward price-to-sales multiple of 4.2, which is above its 3-month median of 3.2. Richtech Robotics' forward price-to-sales multiple is 39.65, higher than its 3-month median of 44.91.
Verdict
Coherent’s financial prowess was on display in the first quarter of fiscal 2026 on the back of demand from AI-related datacenters and communications. The company’s core business is highly efficient, providing a strong base for scalability. Its products have experienced high demand in the quarter, which is expected to increase in the future. COHR maintains a strong balance sheet position, waving a green flag for investors.
Richtech Robotics’ strategy to pivot to a RaaS model deteriorated its growth under the pretext of recurring revenues from MSAs in the future. Despite an effective product strategy and a strong balance sheet, RR’s profitability position has been compromised. A piling competitive pressure is another headwind that could affect RR’s growth and profitability balance.
Despite both stocks being fundamentally strong, Coherent appears to offer more growth prospects for investors since it is significantly cheaper than RR, providing ample room for growth.
COHR flaunts a Zacks Rank #1 (Strong Buy) and RR has a Zacks Rank #3 (Hold) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.