NOVONIX (OTCMKTS:NVNXF) and Avnet (NASDAQ:AVT) Critical Analysis

NOVONIX (OTCMKTS:NVNXF) and Avnet (NASDAQ:AVT) are both computer and technology companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, risk, institutional ownership, valuation, analyst recommendations, dividends and profitability.

Profitability

This table compares NOVONIX and Avnet’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
NOVONIX	N/A	N/A	N/A
Avnet	1.43%	6.96%	2.83%

Risk & Volatility

NOVONIX has a beta of 2.21, suggesting that its stock price is 121% more volatile than the S&P 500. Comparatively, Avnet has a beta of 1.03, suggesting that its stock price is 3% more volatile than the S&P 500.

Institutional & Insider Ownership

95.8% of Avnet shares are owned by institutional investors. 6.6% of NOVONIX shares are owned by insiders. Comparatively, 1.5% of Avnet shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Analyst Recommendations

This is a summary of current ratings for NOVONIX and Avnet, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
NOVONIX	0	0	0	0	0.00
Avnet	2	2	0	0	1.50

Avnet has a consensus target price of $49.00, suggesting a potential downside of 10.91%. Given Avnet’s stronger consensus rating and higher probable upside, analysts clearly believe Avnet is more favorable than NOVONIX.

Earnings and Valuation

This table compares NOVONIX and Avnet”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
NOVONIX	$5.85 million	N/A	-$74.82 million	N/A	N/A
Avnet	$23.76 billion	0.19	$498.70 million	$3.57	15.41

Avnet has higher revenue and earnings than NOVONIX.

Summary

Avnet beats NOVONIX on 8 of the 10 factors compared between the two stocks.

About NOVONIX

NOVONIX Limited provides battery materials and development technology for battery manufacturers, materials companies, automotive original equipment manufacturers (OEMs), and consumer electronics manufacturers in North America, Asia, Australia, and Europe. It operates through Battery Materials and Battery Technology segments. The Battery Materials segment develops and manufactures battery anode materials. The Battery Technology segment develops battery cell testing equipment, performs consulting services, and carries out research and development in battery development. The company is involved in the investment and real estate borrowing activities; and offers battery technology, battery testing hardware equipment, and battery testing and development consulting services. The company was formerly known as Graphitecorp Limited and changed its name to NOVONIX Limited in July 2017. NOVONIX Limited was incorporated in 2012 and is based in Brisbane, Australia.

About Avnet

Avnet, Inc., distributes electronic component technology. The company operates through two segments, Electronic Components and Farnell. The Electronic Components segment markets, sells, and distributes semiconductors; interconnect, passive, and electromechanical components; and other integrated components from electronic component manufacturers. It also offers design chain support that provides engineers with technical design solutions; engineering and technical resources to support product design, bill of materials development, and technical education and training; and supply chain solutions that provide support and logistical services to original equipment manufacturers, electronic manufacturing service providers, and electronic component manufacturers. In addition, this segment provides embedded solutions, such as technical design, integration, and assembly of embedded products, systems, and solutions primarily for industrial applications, as well as embedded display solutions comprising touch and passive displays; and develops and manufactures standard board and industrial subsystems, and application-specific devices that enable it to produce systems tailored to specific customer requirements. This segment serves various markets, such as automotive, medical, defense, aerospace, telecommunications, industrial, and digital editing. The Farnell segment distributes kits, tools, and electronic and industrial automation components, as well as test and measurement products to engineers and entrepreneurs. It has operations in the Americas, Europe, the Middle East, Africa, and Asia. Avnet, Inc. was founded in 1921 and is headquartered in Phoenix, Arizona.