Sono-Tek (SOTK) and Novanta (NOVT) Head to Head Analysis

Sono-Tek (OTCMKTS:SOTK) and Novanta (NASDAQ:NOVT) are both industrial products companies, but which is the better stock? We will compare the two companies based on the strength of their institutional ownership, risk, valuation, profitability, earnings, analyst recommendations and dividends.

Insider & Institutional Ownership

0.0% of Sono-Tek shares are held by institutional investors. Comparatively, 84.5% of Novanta shares are held by institutional investors. 17.1% of Sono-Tek shares are held by company insiders. Comparatively, 6.7% of Novanta shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Earnings and Valuation

This table compares Sono-Tek and Novanta’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Sono-Tek $11.01 million 3.93 $360,000.00 N/A N/A
Novanta $521.29 million 4.06 $60.05 million $1.60 37.88

Novanta has higher revenue and earnings than Sono-Tek.

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for Sono-Tek and Novanta, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Sono-Tek 0 0 0 0 N/A
Novanta 0 1 1 0 2.50

Novanta has a consensus price target of $54.00, suggesting a potential downside of 10.91%. Given Novanta’s higher probable upside, analysts plainly believe Novanta is more favorable than Sono-Tek.

Profitability

This table compares Sono-Tek and Novanta’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Sono-Tek 3.31% 4.49% 3.21%
Novanta 6.18% 18.95% 8.74%

Risk and Volatility

Sono-Tek has a beta of 0.02, suggesting that its share price is 98% less volatile than the S&P 500. Comparatively, Novanta has a beta of 1.72, suggesting that its share price is 72% more volatile than the S&P 500.

Summary

Novanta beats Sono-Tek on 10 of the 12 factors compared between the two stocks.

About Sono-Tek

Sono-Tek Corporation designs and manufactures ultrasonic coating systems for applying on parts and components for the microelectronics/electronics, alternative energy, medical, industrial, and research and development/other markets worldwide. The company also designs and manufactures custom-engineered ultrasonic coating systems; and provides patented nozzles and generators for manufacturers' equipment. Its products include integrated multi-axis coating systems, integrated coating systems, fluxing systems, OEM systems, and other related systems. The company markets and distributes its products through independent distributors, sales representatives, sales representative companies. The company was founded in 1975 and is headquartered in Milton, New York.

About Novanta

Novanta Inc., together with its subsidiaries, designs, manufactures, markets, and sells photonics, vision, and precision motion components and sub-systems to original equipment manufacturers in the medical and industrial markets worldwide. The company's Photonics segment offers photonics-based solutions, including laser scanning and laser beam delivery, CO2 laser, continuous wave and ultrafast laser, and optical light engine products for photonics-based applications, such as industrial material processing, metrology, medical and life science imaging, DNA sequencing, and medical laser procedures. Its Vision segment provides a range of medical grade technologies, including medical insufflators, pumps, and related disposables; surgical displays and operating room integration technologies; optical data collection and machine vision technologies; radio frequency identification technologies; thermal printers; spectrometry technologies; and embedded touch screen solutions. The company's Precision Motion segment offers optical encoders, precision motor and motion control technology, air bearing spindles, and precision machined components. The company sells its products through its direct sales force, resellers, distributors, and system integrators under the Cambridge Technology, Lincoln Laser, ExoTec Precision, Synrad, Laser Quantum, WOM, Lemke, NDS, NDSsi, Reach Technology, JADAK, Skyetek, ThingMagic, Photo Research, General Scanning, Celera Motion, MicroE, Applimotion, and Westwind brands. Novanta Inc. was founded in 1968 and is headquartered in Bedford, Massachusetts.

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