Analyzing Novanta (NOVT) & Its Rivals

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

Earnings & Valuation

This table compares Novanta and its rivals gross revenue, earnings per share and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Novanta $384.76 million $22.00 million 30.15
Novanta Competitors $1.21 billion $129.73 million 97.76

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

Volatility & Risk

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

Analyst Ratings

This is a summary of current ratings and recommmendations for Novanta and its rivals, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Novanta 0 0 1 0 3.00
Novanta Competitors 41 260 518 12 2.60

Novanta presently has a consensus target price of $54.00, indicating a potential upside of 6.72%. As a group, “Electronic Component” companies have a potential upside of 0.98%. Given Novanta’s stronger consensus rating and higher possible upside, analysts plainly believe Novanta is more favorable than its rivals.

Insider and 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 insiders. Comparatively, 9.0% of shares of all “Electronic Component” companies are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Profitability

This table compares Novanta and its rivals’ 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 rivals 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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