Novanta (NASDAQ:NOVT – Get Free Report) and Wetouch Technology (NASDAQ:WETH – Get Free Report) are both technology companies, but which is the superior stock? We will compare the two businesses based on the strength of their institutional ownership, analyst recommendations, profitability, risk, earnings, dividends and valuation.
Insider and Institutional Ownership
98.3% of Novanta shares are owned by institutional investors. 1.2% of Novanta shares are owned by insiders. Comparatively, 0.1% of Wetouch Technology shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.
Earnings & Valuation
This table compares Novanta and Wetouch Technology”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Novanta | $980.60 million | 5.61 | $53.83 million | $1.56 | 93.29 |
| Wetouch Technology | $45.14 million | 0.32 | $7.16 million | $0.70 | 1.54 |
Novanta has higher revenue and earnings than Wetouch Technology. Wetouch Technology is trading at a lower price-to-earnings ratio than Novanta, indicating that it is currently the more affordable of the two stocks.
Analyst Recommendations
This is a breakdown of recent ratings and target prices for Novanta and Wetouch Technology, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Novanta | 0 | 1 | 1 | 1 | 3.00 |
| Wetouch Technology | 1 | 0 | 0 | 0 | 1.00 |
Novanta presently has a consensus target price of $194.00, indicating a potential upside of 33.30%. Given Novanta’s stronger consensus rating and higher possible upside, equities analysts clearly believe Novanta is more favorable than Wetouch Technology.
Profitability
This table compares Novanta and Wetouch Technology’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Novanta | 6.00% | 10.83% | 7.53% |
| Wetouch Technology | 17.57% | 5.94% | 5.78% |
Volatility and Risk
Novanta has a beta of 1.67, indicating that its share price is 67% more volatile than the S&P 500. Comparatively, Wetouch Technology has a beta of 0.75, indicating that its share price is 25% less volatile than the S&P 500.
Summary
Novanta beats Wetouch Technology on 14 of the 15 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 Wetouch Technology
Wetouch Technology Inc. engages in the research, development, manufacture, sale, and servicing of medium to large sized projected capacitive touchscreens in the Peoples Republic of China, Taiwan, South Korea, and internationally. The company offers various touch panels, including glass-glass, which are primarily used in GPS/car entertainment panels in mid-size and luxury cars, industrial human-machine interface (HMI), financial and banking terminals, point of sale, and lottery machines; glass-film-film products that are used in GPS and entertainment panels, industrial HMI, financial and banking terminals, lottery, and gaming industry; plastic-glass for use in GPS/entertainment panels, motor vehicle GPS, smart home products, robots, and charging stations; and glass-films used in industrial HMI. Wetouch Technology Inc. was founded in 2011 and is based in Meishan, China.
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