Novanta (NASDAQ:NOVT) and Security Devices International (OTCMKTS:SDEV) are both computer and technology companies, but which is the superior stock? We will contrast the two businesses based on the strength of their analyst recommendations, dividends, institutional ownership, profitability, risk, valuation and earnings.
Volatility and Risk
Novanta has a beta of 1.46, suggesting that its share price is 46% more volatile than the S&P 500. Comparatively, Security Devices International has a beta of 0.64, suggesting that its share price is 36% less volatile than the S&P 500.
86.5% of Novanta shares are owned by institutional investors. Comparatively, 0.3% of Security Devices International shares are owned by institutional investors. 4.9% of Novanta shares are owned by insiders. Comparatively, 14.9% of Security Devices International shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.
This is a breakdown of recent recommendations and price targets for Novanta and Security Devices International, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Security Devices International||0||0||0||0||N/A|
Novanta currently has a consensus target price of $81.00, indicating a potential downside of 2.76%. Given Novanta’s higher probable upside, research analysts clearly believe Novanta is more favorable than Security Devices International.
This table compares Novanta and Security Devices International’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Security Devices International||-884.32%||N/A||-215.48%|
Valuation & Earnings
This table compares Novanta and Security Devices International’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Novanta||$614.34 million||4.74||$49.11 million||$2.16||38.56|
|Security Devices International||$250,000.00||62.42||-$2.15 million||N/A||N/A|
Novanta has higher revenue and earnings than Security Devices International.
Novanta beats Security Devices International on 8 of the 10 factors compared between the two stocks.
Novanta Company Profile
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; visualization solutions; wireless imaging and operating room integration technologies; optical data collection and machine vision technologies; radio frequency identification technologies; thermal chart recorders; spectrometry technologies; and embedded touch screen solutions. The company's Precision Motion segment offers optical and inductive encoders, precision motors, motion control sub-assemblies, air bearings, air bearing spindles, and precision machined components. It 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, NDS, NDSsi, Reach Technology, JADAK, ThingMagic, Photo Research, General Scanning, Celera Motion, MicroE, Applimotion, Zettlex, and Westwind brands. The company was formerly known as GSI Group, Inc. and changed its name to Novanta Inc. in May 2016. Novanta Inc. was founded in 1968 and is headquartered in Bedford, Massachusetts.
Security Devices International Company Profile
Security Devices International, Inc., a less-lethal defense technology company, develops, manufactures, and sells solutions for security situations that do not require the use of lethal force. The company offers blunt impact projectile 40mm line of products, which uses pain compliance to control a target; and a line of 12 gauge less lethal projectiles and irritants. It serves military, correctional services, police agencies, and private securities for crowd control. The company operates in the United States and Canada. Security Devices International, Inc. was founded in 2005 and is based in Wakefield, Massachusetts.
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