Head to Head Analysis: Novanta (NOVT) versus Its Rivals

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

Risk and Volatility

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

Earnings & Valuation

This table compares Novanta and its peers 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 $129.73 million 100.89

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

Profitability

This table compares Novanta and its peers’ 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%

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

Analyst Recommendations

This is a breakdown of current recommendations and price targets for Novanta and its peers, 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 40 260 518 12 2.60

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 2.35%. Given Novanta’s stronger consensus rating and higher probable upside, equities research analysts clearly believe Novanta is more favorable than its peers.

Summary

Novanta beats its peers 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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