Reviewing Novanta (NASDAQ:NOVT) and Vishay Precision Group (NYSE:VPG)

Vishay Precision Group (NYSE:VPG) and Novanta (NASDAQ:NOVT) are both computer and technology companies, but which is the better investment? We will contrast the two companies based on the strength of their valuation, earnings, risk, profitability, analyst recommendations, institutional ownership and dividends.

Profitability

This table compares Vishay Precision Group and Novanta’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Vishay Precision Group	1.72%	2.16%	1.57%
Novanta	5.49%	13.12%	7.79%

Institutional and Insider Ownership

87.6% of Vishay Precision Group shares are owned by institutional investors. Comparatively, 98.3% of Novanta shares are owned by institutional investors. 7.7% of Vishay Precision Group shares are owned by company insiders. Comparatively, 1.2% of Novanta shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Valuation & Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Vishay Precision Group	$307.20 million	1.94	$5.29 million	$0.40	112.02
Novanta	$980.60 million	4.26	$53.83 million	$1.46	80.16

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

Risk and Volatility

Vishay Precision Group has a beta of 0.89, meaning that its stock price is 11% less volatile than the S&P 500. Comparatively, Novanta has a beta of 1.64, meaning that its stock price is 64% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent ratings and target prices for Vishay Precision Group and Novanta, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Vishay Precision Group	2	0	2	0	2.00
Novanta	0	2	1	0	2.33

Vishay Precision Group presently has a consensus price target of $53.67, suggesting a potential upside of 19.78%. Novanta has a consensus price target of $144.00, suggesting a potential upside of 23.03%. Given Novanta’s stronger consensus rating and higher probable upside, analysts clearly believe Novanta is more favorable than Vishay Precision Group.

Summary

Novanta beats Vishay Precision Group on 11 of the 14 factors compared between the two stocks.

About Vishay Precision Group

Vishay Precision Group, Inc. designs, manufactures, and markets specialized sensors, weighing solutions, and measurement systems in the United States, Israel, the United Kingdom, rest of Europe, Asia, and Canada. It operates through three segments: Sensors, Weighing Solutions, and Measurement Systems. Its product portfolio includes precision resistors, strain gages, load cells and force measurement transducers, on-board weighing systems, and process weighing products; rolling force measuring load cell systems and pressure transmitters; web tension measurement load cells and systems; and optical strip width gages; and laser velocimeters for speed and length measurements and closed-loop crop optimization control systems for optimal strip cuts. The company also offers data acquisition systems and sensors for product safety testing; thermal-mechanical simulation systems for metallurgical research; and conditioning, data acquisition and control systems, as well as electronic displays, signal processors, microelectromechanical system sensors, cabling, system software, and communications software/hardware. Its products are used in industrial comprising waste management, bulk hauling, logging, scales manufacturing, engineering systems, pharmaceutical, oil, chemical, steel, paper, and food industries, as well as test and measurement, steel, medical, construction, agricultural, and consumer markets. The company offers its products under the Alpha Electronics, Powertron, Vishay Foil Resistors, Micro-Measurements, APR, Celtron, Revere, Sensortronics, Tedea-Huntleigh, Stress-tek, Vulcan, BLH Nobel, KELK, and DTS brands. Vishay Precision Group, Inc. was incorporated in 2009 and is headquartered in Malvern, Pennsylvania.

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.