Comparing Novanta (NASDAQ:NOVT) & Vishay Precision Group (NYSE:VPG)

Novanta (NASDAQ:NOVT) and Vishay Precision Group (NYSE:VPG) are both computer and technology companies, but which is the superior investment? We will compare the two companies based on the strength of their profitability, earnings, valuation, analyst recommendations, risk, institutional ownership and dividends.

Analyst Ratings

This is a summary of recent ratings and price targets for Novanta and Vishay Precision Group, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Novanta	0	2	1	0	2.33
Vishay Precision Group	2	0	2	0	2.00

Novanta currently has a consensus target price of $144.00, indicating a potential upside of 23.03%. Vishay Precision Group has a consensus target price of $53.67, indicating a potential upside of 19.78%. Given Novanta’s stronger consensus rating and higher probable upside, equities research analysts plainly believe Novanta is more favorable than Vishay Precision Group.

Valuation and Earnings

This table compares Novanta and Vishay Precision Group”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Novanta	$980.60 million	4.26	$53.83 million	$1.46	80.16
Vishay Precision Group	$307.20 million	1.94	$5.29 million	$0.40	112.02

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

Profitability

This table compares Novanta and Vishay Precision Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Novanta	5.49%	13.12%	7.79%
Vishay Precision Group	1.72%	2.16%	1.57%

Volatility & Risk

Novanta has a beta of 1.61, meaning that its share price is 61% more volatile than the S&P 500. Comparatively, Vishay Precision Group has a beta of 0.89, meaning that its share price is 11% less volatile than the S&P 500.

Insider and Institutional Ownership

98.3% of Novanta shares are owned by institutional investors. Comparatively, 87.6% of Vishay Precision Group shares are owned by institutional investors. 1.2% of Novanta shares are owned by company insiders. Comparatively, 7.7% of Vishay Precision Group shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Summary

Novanta beats Vishay Precision Group on 11 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 Vishay Precision Group

Vishay Precision Group, Inc. designs, manufactures, and markets specialized sensors, weighing solutions, and measurement systems in the United States, Israel, the United Kingdom, rest of Europe, Asia, and Canada. It operates through three segments: Sensors, Weighing Solutions, and Measurement Systems. Its product portfolio includes precision resistors, strain gages, load cells and force measurement transducers, on-board weighing systems, and process weighing products; rolling force measuring load cell systems and pressure transmitters; web tension measurement load cells and systems; and optical strip width gages; and laser velocimeters for speed and length measurements and closed-loop crop optimization control systems for optimal strip cuts. The company also offers data acquisition systems and sensors for product safety testing; thermal-mechanical simulation systems for metallurgical research; and conditioning, data acquisition and control systems, as well as electronic displays, signal processors, microelectromechanical system sensors, cabling, system software, and communications software/hardware. Its products are used in industrial comprising waste management, bulk hauling, logging, scales manufacturing, engineering systems, pharmaceutical, oil, chemical, steel, paper, and food industries, as well as test and measurement, steel, medical, construction, agricultural, and consumer markets. The company offers its products under the Alpha Electronics, Powertron, Vishay Foil Resistors, Micro-Measurements, APR, Celtron, Revere, Sensortronics, Tedea-Huntleigh, Stress-tek, Vulcan, BLH Nobel, KELK, and DTS brands. Vishay Precision Group, Inc. was incorporated in 2009 and is headquartered in Malvern, Pennsylvania.