Reviewing Omron (OTCMKTS:OMRNY) & Novanta (NASDAQ:NOVT)

Omron (OTCMKTS:OMRNY) and Novanta (NASDAQ:NOVT) are both mid-cap computer and technology companies, but which is the superior business? We will contrast the two companies based on the strength of their risk, dividends, profitability, analyst recommendations, valuation, institutional ownership and earnings.

Risk and Volatility

Omron has a beta of 0.97, meaning that its stock price is 3% less volatile than the S&P 500. Comparatively, Novanta has a beta of 1.59, meaning that its stock price is 59% more volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Omron	3.47%	3.01%	2.06%
Novanta	5.50%	14.53%	7.82%

Analyst Ratings

This is a breakdown of current recommendations and price targets for Omron and Novanta, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Omron	1	0	0	0	1.00
Novanta	1	2	0	0	1.67

Novanta has a consensus target price of $133.00, indicating a potential upside of 11.81%. Given Novanta’s stronger consensus rating and higher possible upside, analysts plainly believe Novanta is more favorable than Omron.

Earnings & Valuation

This table compares Omron and Novanta”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Omron	$5.26 billion	1.01	$107.39 million	$0.97	26.65
Novanta	$949.24 million	4.48	$64.09 million	$1.47	80.92

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

Insider & Institutional Ownership

1.1% of Omron shares are held by institutional investors. Comparatively, 98.4% of Novanta shares are held by institutional investors. 1.2% of Novanta shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Summary

Novanta beats Omron on 11 of the 13 factors compared between the two stocks.

About Omron

OMRON Corporation engages in industrial automation, device and module solutions, social systems, and healthcare businesses worldwide. The Industrial Automation Business offers sensors, switches, safety and control components, relays, motion and drives, robotics, energy conservation, power supplies, and automation system products. It also offers environmental mobility, digital devices, food and commodity, logistic and warehouse automation, medical, robotic, panel, vision, software, and traceability related solutions. The Social Systems, Solutions and Service Business provides energy, public transport, traffic safety, network protection, payment, infrastructure monitoring, management service, and DX solutions, as well as offers remote surveillance/monitoring, automation/robotics, software development, engineering/maintenance, and other services. The Healthcare Business provides cardiovascular, respiratory care, pain management, remote patient monitoring, and other solutions. The Device and Module Solutions Business offers relays, switches, connectors, and sensors. OMRON Corporation was founded in 1933 and is headquartered in Kyoto, Japan.

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.