Contrasting Novanta (NASDAQ:NOVT) & Riskgeorge In (OTCMKTS:RSKIA)

Novanta (NASDAQ:NOVT) and Riskgeorge In (OTCMKTS:RSKIA) are both computer and technology companies, but which is the superior business? We will compare the two companies based on the strength of their profitability, valuation, earnings, institutional ownership, analyst recommendations, risk and dividends.

Insider & Institutional Ownership

98.4% of Novanta shares are held by institutional investors. Comparatively, 0.1% of Riskgeorge In shares are held by institutional investors. 1.2% of Novanta shares are held by company insiders. Comparatively, 59.8% of Riskgeorge In shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Earnings & Valuation

This table compares Novanta and Riskgeorge In”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Novanta	$980.60 million	5.64	$53.83 million	$1.38	112.54
Riskgeorge In	$22.54 million	4.10	$7.13 million	$1.88	10.04

Novanta has higher revenue and earnings than Riskgeorge In. Riskgeorge In is trading at a lower price-to-earnings ratio than Novanta, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Novanta and Riskgeorge In’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Novanta	5.35%	12.06%	7.70%
Riskgeorge In	38.22%	15.63%	13.86%

Analyst Recommendations

This is a breakdown of current ratings and target prices for Novanta and Riskgeorge In, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Novanta	0	2	1	0	2.33
Riskgeorge In	0	0	0	0	0.00

Novanta currently has a consensus target price of $180.00, indicating a potential upside of 15.90%. Given Novanta’s stronger consensus rating and higher probable upside, equities research analysts plainly believe Novanta is more favorable than Riskgeorge In.

Volatility and Risk

Novanta has a beta of 1.68, indicating that its stock price is 68% more volatile than the S&P 500. Comparatively, Riskgeorge In has a beta of 0.11, indicating that its stock price is 89% less volatile than the S&P 500.

Summary

Novanta beats Riskgeorge In on 9 of the 14 factors compared between the two stocks.

About Novanta

Novanta, Inc. engages in the provision of core technology solutions to healthcare and advanced industrial original equipment manufacturers. It operates through the following segments: Photonics, Vision, and Precision Motion. The Photonics segment designs, manufactures, and markets photonics-based solutions, including laser scanning and laser beam delivery, CO2 laser, continuous wave and ultrafast laser, and optical light engine products. The Vision segment offers 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 Precision Motion segment includes optical encoders, precision motor and motion control technology, air bearing spindles, and precision machined components to customers. The company was founded in 1968 and is headquartered in Bedford, MA.

About Riskgeorge In

George Risk Industries, Inc. designs, manufactures, and sells various electronic components worldwide. It operates in three segments: security line products, cable and wiring tools (Labor Saving Devices – LSDI) products, and all other products. The company offers computer keyboards, proximity switches, security alarm components and systems, pool access alarms, EZ Duct wire covers, water sensors, electronic switching devices, security switches, and wire and cable installation tools, as well as door and window contact switches, environmental products, liquid detection sensors, and raceway wire covers. Its products are used for residential, commercial, industrial, and government installations. The company serves security alarm distributors, alarm installers, original equipment manufacturers, and distributors of off-the-shelf keyboards. George Risk Industries, Inc. was incorporated in 1961 and is based in Kimball, Nebraska.