Analyzing Novanta (NOVT) and The Competition
Novanta (NASDAQ: NOVT) is one of 24 publicly-traded companies in the “Electronic Component” industry, but how does it contrast to its rivals? We will compare Novanta to similar businesses based on the strength of its risk, profitability, valuation, earnings, institutional ownership, analyst recommendations and dividends.
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 endowments, hedge funds and large money managers believe a company is poised for long-term growth.
This is a breakdown of recent ratings and price targets for Novanta and its rivals, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Novanta currently has a consensus target price of $54.00, indicating a potential upside of 6.61%. As a group, “Electronic Component” companies have a potential upside of 0.98%. Given Novanta’s stronger consensus rating and higher possible upside, equities analysts plainly believe Novanta is more favorable than its rivals.
This table compares Novanta and its rivals’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Earnings & Valuation
This table compares Novanta and its rivals gross revenue, earnings per share and valuation.
|Gross Revenue||Net Income||Price/Earnings Ratio|
|Novanta||$384.76 million||$22.00 million||30.15|
|Novanta Competitors||$1.21 billion||$129.73 million||94.00|
Novanta’s rivals have higher revenue and earnings than Novanta. Novanta is trading at a lower price-to-earnings ratio than its rivals, indicating that it is currently more affordable than other companies in its industry.
Volatility and Risk
Novanta has a beta of 1.33, indicating that its share price is 33% more volatile than the S&P 500. Comparatively, Novanta’s rivals have a beta of 1.01, indicating that their average share price is 1% more volatile than the S&P 500.
Novanta beats its rivals on 8 of the 13 factors compared.
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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