Novanta (NOVT) versus Its Rivals Head-To-Head Contrast

Novanta (NASDAQ:NOVT) is one of 377 public companies in the “Electronic Equipment, Instruments & Components” industry, but how does it compare to its rivals? We will compare Novanta to similar companies based on the strength of its earnings, institutional ownership, risk, valuation, profitability, analyst recommendations and dividends.

Analyst Ratings

This is a breakdown of recent ratings for Novanta and its rivals, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Novanta	0	2	1	0	2.33
Novanta Competitors	2049	7622	10455	667	2.47

Novanta presently has a consensus price target of $194.00, indicating a potential upside of 57.70%. As a group, “Electronic Equipment, Instruments & Components” companies have a potential upside of 36.21%. Given Novanta’s higher probable upside, equities research analysts plainly believe Novanta is more favorable than its rivals.

Institutional & Insider Ownership

98.3% of Novanta shares are owned by institutional investors. Comparatively, 43.5% of shares of all “Electronic Equipment, Instruments & Components” companies are owned by institutional investors. 1.2% of Novanta shares are owned by company insiders. Comparatively, 16.1% of shares of all “Electronic Equipment, Instruments & Components” companies are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Profitability

This table compares Novanta and its rivals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Novanta	6.00%	10.83%	7.53%
Novanta Competitors	-160.23%	-30.21%	-6.88%

Risk and Volatility

Novanta has a beta of 1.71, indicating that its stock price is 71% more volatile than the S&P 500. Comparatively, Novanta’s rivals have a beta of -0.29, indicating that their average stock price is 129% less volatile than the S&P 500.

Valuation and Earnings

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

	Gross Revenue	Net Income	Price/Earnings Ratio
Novanta	$980.60 million	$53.83 million	78.86
Novanta Competitors	$4.00 billion	$172.92 million	4.06

Novanta’s rivals have higher revenue and earnings than Novanta. Novanta is trading at a higher price-to-earnings ratio than its rivals, indicating that it is currently more expensive than other companies in its industry.

Summary

Novanta beats its rivals on 7 of the 13 factors compared.

About Novanta

Novanta develops and manufactures precision technologies used in medical and advanced industrial applications. Its products include photonics and laser components, precision motion-control systems, machine-vision technologies, and related equipment and software. The company’s technologies are used in areas such as medical and surgical systems, life sciences, robotics, and industrial automation. Novanta serves customers internationally, with operations and customers across North America, Europe, and Asia.