nLight Inc. (NASDAQ: LASR) is comparable in size to IPG, though its 100% YTD return outshines its competitor's. This company reported 55% YOY revenue gains in the latest quarter, although at an absolute level, sales were much more modest: nLight saw $80.2 million in revenue for the period. Margins and adjusted EBITDA were also strong, a sign that the company should be able to continue strengthening its balance sheet.
As a pre-profit company, nLight necessarily carries a higher level of risk than the other firms on this list.
Still, a massive new contract with the Pentagon should help to firm up the company's defense-focused business for some time to come. Regardless, investors should view this play as more speculative than other photonics businesses.