Novanta (NASDAQ:NOVT) vs. Its Peers Head-To-Head Comparison

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

Earnings and Valuation

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

Gross Revenue Net Income Price/Earnings Ratio
Novanta $384.76 million $22.00 million 37.24
Novanta Competitors $1.21 billion $129.73 million 102.18

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.

Volatility & Risk

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

Analyst Ratings

This is a breakdown of recent ratings 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 41 260 518 12 2.60

Novanta presently has a consensus target price of $54.00, suggesting a potential upside of 6.61%. As a group, “Electronic Component” companies have a potential upside of 0.54%. Given Novanta’s stronger consensus rating and higher probable upside, research analysts clearly believe Novanta is more favorable than its peers.

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%

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, endowments and large money managers believe a company is poised for long-term growth.

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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