nVent Electric (NYSE:NVT) versus Novanta (NASDAQ:NOVT) Head-To-Head Contrast

Novanta (NASDAQ:NOVT) and nVent Electric (NYSE:NVT) are both computer and technology companies, but which is the superior stock? We will compare the two businesses based on the strength of their valuation, institutional ownership, profitability, analyst recommendations, earnings, dividends and risk.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Novanta	6.41%	14.70%	7.88%
nVent Electric	17.72%	13.36%	6.73%

Volatility and Risk

Novanta has a beta of 1.5, indicating that its share price is 50% more volatile than the S&P 500. Comparatively, nVent Electric has a beta of 1.39, indicating that its share price is 39% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of current ratings and price targets for Novanta and nVent Electric, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Novanta	0	1	0	0	2.00
nVent Electric	0	0	7	1	3.13

Novanta presently has a consensus target price of $133.00, indicating a potential upside of 26.27%. nVent Electric has a consensus target price of $90.43, indicating a potential downside of 7.13%. Given Novanta’s higher probable upside, equities research analysts plainly believe Novanta is more favorable than nVent Electric.

Insider and Institutional Ownership

98.3% of Novanta shares are owned by institutional investors. Comparatively, 90.1% of nVent Electric shares are owned by institutional investors. 1.2% of Novanta shares are owned by company insiders. Comparatively, 1.8% of nVent Electric shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Novanta	$956.88 million	3.96	$64.09 million	$1.70	61.96
nVent Electric	$3.31 billion	4.74	$331.80 million	$3.51	27.74

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

Summary

nVent Electric beats Novanta on 9 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 nVent Electric

nVent Electric plc, together with its subsidiaries, designs, manufactures, markets, installs, and services electrical connection and protection solutions in North America, Europe, the Middle East, Africa, the Asia Pacific, and internationally. The company operates through three segments: Enclosures, Electrical & Fastening Solutions, and Thermal Management. The Enclosures segment provides solutions to protect electronics and data in mission critical applications, including data solutions. This segment also offers digital and automation solutions, system integrations, and global services. The Electrical & Fastening Solutions segment provides solutions that connect and protect power and data infrastructure. This segment also offers power connections, fastening solutions, cable management solutions, grounding and bonding systems, and tools and test instruments. The Thermal Management segment offers heat management solutions that protect people and assets. This segment includes heat tracing for freeze protection and process temperature maintenance and control; pipe freeze protection, surface deicing, hot water temperature maintenance, floor heating, fire-rated wiring, and leak detection; and heat trace systems, connected controls, remote monitoring, and annual service programs. The company markets its products through electrical distributors, contractors, and original equipment manufacturers under the CADDY, ERICO, GARDNER BENDER, HOFFMAN, ILSCO, RAYCHEM, SCHROFF, and TRACER brand names. Its products are used for various applications, such as industrial, commercial and residential, infrastructure, and energy. nVent Electric plc was founded in 1903 and is based in London, the United Kingdom.