Novanta (NOVT) & Its Competitors Head to Head Comparison

Novanta (NASDAQ: NOVT) is one of 24 public companies in the “Electronic Component” industry, but how does it compare to its competitors? We will compare Novanta to similar businesses based on the strength of its valuation, risk, analyst recommendations, dividends, profitability, earnings and institutional ownership.

Profitability

This table compares Novanta and its competitors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Novanta 12.45% 18.29% 9.56%
Novanta Competitors -2.83% -0.23% 1.93%

Earnings & Valuation

This table compares Novanta and its competitors top-line revenue, earnings per share and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Novanta $384.76 million $22.00 million 37.43
Novanta Competitors $1.21 billion $130.98 million 96.14

Novanta’s competitors have higher revenue and earnings than Novanta. Novanta is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.

Analyst Recommendations

This is a breakdown of current ratings and price targets for Novanta and its competitors, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Novanta 0 0 1 0 3.00
Novanta Competitors 40 258 518 12 2.61

Novanta presently has a consensus price target of $54.00, indicating a potential upside of 6.09%. As a group, “Electronic Component” companies have a potential upside of 2.79%. Given Novanta’s stronger consensus rating and higher probable upside, research analysts clearly believe Novanta is more favorable than its competitors.

Insider and Institutional Ownership

78.9% of Novanta shares are owned by institutional investors. Comparatively, 56.6% of shares of all “Electronic Component” companies are owned by institutional investors. 8.3% of Novanta shares are owned by company insiders. Comparatively, 9.0% of shares of all “Electronic Component” companies are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Risk and Volatility

Novanta has a beta of 1.33, suggesting that its stock price is 33% more volatile than the S&P 500. Comparatively, Novanta’s competitors have a beta of 1.01, suggesting that their average stock price is 1% more volatile than the S&P 500.

Summary

Novanta beats its competitors on 8 of the 13 factors compared.

About Novanta

Novanta Inc., formerly GSI Group Inc., designs, develops, manufactures and sells precision photonic and motion control components and subsystems. The Company’s segments are Photonics, Vision and Precision Motion. The Photonics segment designs, manufactures and markets photonics-based solutions, including carbon dioxide (CO2) laser sources, laser scanning and laser beam delivery products, to customers around the world. The Vision Technologies segment designs, manufactures and markets a range of medical grade technologies, including visualization solutions, imaging informatics products, optical data collection and machine vision technologies, radio frequency identification (RFID) technologies, and thermal printers, to customers around the world. The Company’s Precision Motion segment designs, manufactures and markets optical encoders, precision motors and other motion control technology, air bearing spindles and precision machined components to customers around the world.

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