Comparing Novanta (NASDAQ:NOVT) & AAC Technologies (OTCMKTS:AACAY)

Novanta (NASDAQ:NOVT) and AAC Technologies (OTCMKTS:AACAY) are both mid-cap computer and technology companies, but which is the better investment? We will compare the two companies based on the strength of their dividends, profitability, institutional ownership, risk, analyst recommendations, earnings and valuation.

Earnings & Valuation

This table compares Novanta and AAC Technologies”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Novanta	$949.24 million	4.47	$64.09 million	$1.70	69.39
AAC Technologies	$3.80 billion	1.76	$249.99 million	N/A	N/A

AAC Technologies has higher revenue and earnings than Novanta.

Profitability

This table compares Novanta and AAC Technologies’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Novanta	6.41%	14.70%	7.88%
AAC Technologies	N/A	N/A	N/A

Analyst Recommendations

This is a breakdown of current ratings for Novanta and AAC Technologies, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Novanta	0	1	0	0	2.00
AAC Technologies	0	0	0	0	0.00

Novanta presently has a consensus target price of $133.00, indicating a potential upside of 12.74%. Given Novanta’s stronger consensus rating and higher possible upside, equities research analysts clearly believe Novanta is more favorable than AAC Technologies.

Volatility & Risk

Novanta has a beta of 1.5, indicating that its stock price is 50% more volatile than the S&P 500. Comparatively, AAC Technologies has a beta of 1.29, indicating that its stock price is 29% more volatile than the S&P 500.

Institutional and Insider Ownership

98.4% of Novanta shares are held by institutional investors. 1.2% of Novanta shares are held 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.

Summary

Novanta beats AAC Technologies on 9 of the 11 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 AAC Technologies

AAC Technologies Holdings Inc., an investment holding company, provides solutions for smart devices in Mainland China, Hong Kong Special Administrative Region of the People's Republic of China, Taiwan, other Asian countries, the United States, and Europe. The company operates through Acoustics Product, Electromagnetic Drives and Precision Mechanics, Optics Products, Sensor and Semiconductor Products, and other products segments. It provides acoustics products for smartphones, laptops, mid-range tablets, and smart glasses; and manufactures and sells haptic motors that are used in smartphones, smart watches, tablets, intelligent automobiles, game controllers, and virtual reality/augmented reality controllers. The company also offers precision mechanics comprising metal casing products; optical lenses, camera modules, and optical actuators, as well as voice coil motor products; and micro electro-mechanical systems (MEMS) and ASIC chips design, packaging, and testing services for consumer electronics, automotive, smart wearables, robotics, IoT, and other sectors. In addition, it provides research and development services; manufactures and sells tooling and precision components, electronic components, and related accessories; and provides electroplating services, as well as engages in investment activities. The company was formerly known as AAC Acoustic Technologies Holdings Inc. and changed its name to AAC Technologies Holdings Inc. in May 2011. AAC Technologies Holdings Inc. was founded in 1993 and is headquartered in Shenzhen, the People's Republic of China.