Bel Fuse (BELFB) versus Novanta (GSIG) Critical Contrast

Bel Fuse (NASDAQ: BELFB) and Novanta (NASDAQ:GSIG) are both computer and technology companies, but which is the better stock? We will contrast the two companies based on the strength of their earnings, institutional ownership, valuation, risk, dividends, profitability and analyst recommendations.

Dividends

Bel Fuse pays an annual dividend of $0.28 per share and has a dividend yield of 1.0%. Novanta does not pay a dividend. Bel Fuse pays out 20.6% of its earnings in the form of a dividend.

Institutional & Insider Ownership

59.3% of Bel Fuse shares are held by institutional investors. 8.8% of Bel Fuse shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Profitability

This table compares Bel Fuse and Novanta’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Bel Fuse 3.44% 11.61% 4.38%
Novanta 8.39% 12.60% 7.39%

Earnings and Valuation

This table compares Bel Fuse and Novanta’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Bel Fuse $492.63 million 0.66 $46.37 million $1.36 19.85
Novanta N/A N/A N/A N/A N/A

Bel Fuse has higher revenue and earnings than Novanta.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Bel Fuse and Novanta, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Bel Fuse 0 1 1 0 2.50
Novanta 0 0 0 0 N/A

Bel Fuse currently has a consensus target price of $39.00, indicating a potential upside of 44.44%. Given Bel Fuse’s higher probable upside, analysts clearly believe Bel Fuse is more favorable than Novanta.

Summary

Bel Fuse beats Novanta on 6 of the 10 factors compared between the two stocks.

About Bel Fuse

Bel Fuse Inc. (Bel) designs, manufactures and markets a range of products that power, protect and connect electronic circuits. The Company’s products include magnetic solutions, power solutions and protection, and connectivity solutions. The Company’s operating segments are North America, Asia and Europe. The Company markets magnetic solutions under the brand names, including Bel, TRP, MagJack and Signal. The Company markets power solutions and protection under the brand names, which include Bel Power Solutions, Power-One and Melcher. The Company markets connectivity solutions under the brand names Stratos, Fibreco, Cinch, Johnson, Trompeter, Midwest Microwave, Semflex and Stewart Connector. The Company’s products are used in the networking, telecommunications, computing, military, aerospace, transportation and broadcasting industries. Bel’s portfolio of products has application in the automotive, medical and consumer electronics markets.

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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