Head to Head Contrast: Inno (NASDAQ:INHD) and Novanta (NASDAQ:NOVT)

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

Profitability

This table compares Inno and Novanta’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Inno	-72.63%	-9.47%	-9.36%
Novanta	6.00%	10.83%	7.53%

Institutional & Insider Ownership

0.2% of Inno shares are owned by institutional investors. Comparatively, 98.3% of Novanta shares are owned by institutional investors. 0.1% of Inno shares are owned by insiders. Comparatively, 1.2% of Novanta shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Analyst Recommendations

This is a summary of recent recommendations and price targets for Inno and Novanta, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Inno	1	0	0	0	1.00
Novanta	0	2	1	0	2.33

Novanta has a consensus price target of $194.00, indicating a potential upside of 37.78%. Given Novanta’s stronger consensus rating and higher possible upside, analysts plainly believe Novanta is more favorable than Inno.

Risk and Volatility

Inno has a beta of -23.22, meaning that its share price is 2,422% less volatile than the S&P 500. Comparatively, Novanta has a beta of 1.72, meaning that its share price is 72% more volatile than the S&P 500.

Earnings and Valuation

This table compares Inno and Novanta”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Inno	$5.54 million	1.66	-$7.08 million	($5.90)	-0.62
Novanta	$980.60 million	5.43	$53.83 million	$1.56	90.26

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

Summary

Novanta beats Inno on 14 of the 14 factors compared between the two stocks.

About Inno

Inno Holdings Inc. manufactures and sells cold-formed-steel members, castor cubes, mobile factories, and prefabricated homes in the United States. The company provides cold-formed steel framing and a mobile factory for off-site equipment rental, sales, service, and support. It serves in residential, commercial, industrial, and infrastructure projects. Inno Holdings Inc. was founded in 2019 and is headquartered in Brookshire, Texas.

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.