Head-To-Head Analysis: Novanta (NOVT) vs. The Competition

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

Volatility and 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 peers 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 breakdown of recent ratings and target prices for Novanta and its peers, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Novanta 0 0 1 0 3.00
Novanta Competitors 41 262 522 12 2.60

Novanta presently has a consensus target price of $54.00, indicating a potential upside of 0.93%. As a group, “Electronic Component” companies have a potential downside of 0.88%. Given Novanta’s stronger consensus rating and higher probable upside, equities research analysts plainly believe Novanta is more favorable than its peers.

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 31.85
Novanta Competitors $1.21 billion $129.73 million 103.99

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.

Institutional and 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 endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

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%

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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