Critical Comparison: Novanta (NASDAQ:NOVT) & Advanced Deposition Technologies (OTCMKTS:ADTC)

Advanced Deposition Technologies (OTCMKTS:ADTC) and Novanta (NASDAQ:NOVT) are both computer and technology companies, but which is the superior investment? We will contrast the two businesses based on the strength of their earnings, profitability, analyst recommendations, valuation, institutional ownership, dividends and risk.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Advanced Deposition Technologies and Novanta, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Advanced Deposition Technologies	0	0	0	0	0.00
Novanta	2	1	0	0	1.33

Novanta has a consensus price target of $133.00, indicating a potential upside of 1.57%. Given Novanta’s stronger consensus rating and higher probable upside, analysts clearly believe Novanta is more favorable than Advanced Deposition Technologies.

Earnings and Valuation

This table compares Advanced Deposition Technologies and Novanta”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Advanced Deposition Technologies	N/A	N/A	N/A	N/A	N/A
Novanta	$949.24 million	4.94	$64.09 million	$1.47	89.07

Novanta has higher revenue and earnings than Advanced Deposition Technologies.

Profitability

This table compares Advanced Deposition Technologies and Novanta’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Advanced Deposition Technologies	N/A	N/A	N/A
Novanta	5.50%	14.53%	7.82%

Insider & Institutional Ownership

98.4% of Novanta shares are held by institutional investors. 36.5% of Advanced Deposition Technologies shares are held by company insiders. Comparatively, 1.2% of Novanta shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Summary

Novanta beats Advanced Deposition Technologies on 7 of the 8 factors compared between the two stocks.

About Advanced Deposition Technologies

Advanced Deposition Technologies, Inc., through its subsidiary, Tahou Natural Resources Development Co., Ltd. develops oil and gas reserves in Japan. It owns approximately 743 acres of oil and gas reserves located in Atsuma-cho, Yufutsu-Gun, Iburino-Kuni, Tomakomai, and Hokkaido in Japan. The company was formerly known as Advanced Dielectric Technologies, Inc. and changed its name to Advanced Deposition Technologies, Inc. in July 1993. Advanced Deposition Technologies, Inc. was incorporated in 1985 is based in Salt Lake City, Utah.

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.