Microwave Filter (OTCMKTS:MFCO) versus Novanta (NASDAQ:NOVT) Head to Head Review

Microwave Filter (OTCMKTS:MFCO) 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 institutional ownership, earnings, dividends, profitability, risk, valuation and analyst recommendations.

Valuation & Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Microwave Filter	N/A	N/A	N/A	($0.14)	-2.79
Novanta	$960.31 million	3.87	$64.09 million	$1.47	70.61

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

Analyst Recommendations

This is a breakdown of current recommendations for Microwave Filter and Novanta, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Microwave Filter	0	0	0	0	0.00
Novanta	1	2	0	0	1.67

Novanta has a consensus price target of $133.00, suggesting a potential upside of 28.14%. Given Novanta’s stronger consensus rating and higher possible upside, analysts plainly believe Novanta is more favorable than Microwave Filter.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Microwave Filter	N/A	N/A	N/A
Novanta	6.41%	14.70%	7.88%

Insider & Institutional Ownership

98.3% of Novanta shares are held by institutional investors. 6.9% of Microwave Filter shares are held by company insiders. Comparatively, 1.2% of Novanta shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Risk and Volatility

Microwave Filter has a beta of 0.46, indicating that its share price is 54% less volatile than the S&P 500. Comparatively, Novanta has a beta of 1.54, indicating that its share price is 54% more volatile than the S&P 500.

Summary

Novanta beats Microwave Filter on 10 of the 11 factors compared between the two stocks.

About Microwave Filter

Microwave Filter Company, Inc. designs, develops, manufactures, and sells electronic filters for radio and microwave frequencies primarily in the United States. It manufactures RF filters and related components for eliminating interference and facilitating signal processing for cable television, broadcast, commercial and military communications, avionics, radar, navigation, and defense markets. The company also designs waveguide, stripline/microstrip, transmission line, miniature/subminiature, and lumped constant filters. Its configurations include bandpass, highpass, lowpass, bandstop, multiplexers, tunable notch, tunable bandpass, high power filters, amplitude equalized, delay equalized, and filter networks. The company serves 5G, cable television, television and radio broadcast, satellite broadcast, mobile radio, commercial, and aerospace and defense electronics markets. Microwave Filter Company, Inc. was incorporated in 1967 and is based in East Syracuse, New York.

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.