Comparing Novanta (NOVT) and Its Competitors

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

Risk and Volatility

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

Insider & Institutional Ownership

76.8% of Novanta shares are owned by institutional investors. Comparatively, 56.4% 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 will outperform the market over the long term.

Valuation and Earnings

This table compares Novanta and its competitors revenue, earnings per share (EPS) and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Novanta $384.76 million $22.00 million 31.10
Novanta Competitors $1.21 billion $129.73 million 102.59

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 recommmendations for Novanta and its competitors, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Novanta 0 0 1 0 3.00
Novanta Competitors 41 261 520 12 2.60

Novanta currently has a consensus price target of $54.00, indicating a potential upside of 3.35%. As a group, “Electronic Component” companies have a potential downside of 1.64%. Given Novanta’s stronger consensus rating and higher possible upside, research analysts clearly believe Novanta is more favorable than its competitors.

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%

Summary

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

Novanta Company Profile

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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