CPS Technologies (NASDAQ:CPSH – Get Free Report) and Novanta (NASDAQ:NOVT – Get Free Report) are both computer and technology companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, risk, institutional ownership, valuation, analyst recommendations, dividends and profitability.
Profitability
This table compares CPS Technologies and Novanta’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| CPS Technologies | 1.29% | 2.43% | 1.90% |
| Novanta | 5.49% | 13.12% | 7.79% |
Risk & Volatility
CPS Technologies has a beta of 1.46, suggesting that its stock price is 46% more volatile than the S&P 500. Comparatively, Novanta has a beta of 1.64, suggesting that its stock price is 64% more volatile than the S&P 500.
Analyst Recommendations
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| CPS Technologies | 1 | 1 | 1 | 0 | 2.00 |
| Novanta | 0 | 2 | 1 | 0 | 2.33 |
CPS Technologies currently has a consensus target price of $6.00, suggesting a potential upside of 14.94%. Novanta has a consensus target price of $144.00, suggesting a potential upside of 11.76%. Given CPS Technologies’ higher probable upside, research analysts clearly believe CPS Technologies is more favorable than Novanta.
Institutional & Insider Ownership
11.2% of CPS Technologies shares are owned by institutional investors. Comparatively, 98.4% of Novanta shares are owned by institutional investors. 13.2% of CPS Technologies shares are owned by insiders. Comparatively, 1.2% of Novanta shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.
Earnings & Valuation
This table compares CPS Technologies and Novanta”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| CPS Technologies | $32.60 million | 2.88 | $420,000.00 | $0.03 | 174.00 |
| Novanta | $980.60 million | 4.69 | $53.83 million | $1.46 | 88.25 |
Novanta has higher revenue and earnings than CPS Technologies. Novanta is trading at a lower price-to-earnings ratio than CPS Technologies, indicating that it is currently the more affordable of the two stocks.
Summary
Novanta beats CPS Technologies on 10 of the 13 factors compared between the two stocks.
About CPS Technologies
CPS Technologies Corporation provides advanced material solutions to the transportation, automotive, energy, computing/internet, telecommunication, aerospace, defense, and oil and gas markets in the United States, Europe, and Asia. The company offers metal matrix composites such as baseplates for various applications, including motor controllers used in electric trains, subway cars, wind turbines, and hybrid and electric vehicles; hermetic packages for use in radar, satellite, and avionics applications; baseplates and housings used in modules built with wide band gap semiconductors; and lids and heat spreaders for use in internet switches and routers. It also assembles housings and packages that includes metal matrix composite components for hybrid circuits; and produces armor for naval and military applications. The company sells its products to microelectronics systems companies. The company was formerly known as Ceramics Process Systems Corporation and changed its name to CPS Technologies Corporation in March 2007. CPS Technologies Corporation was incorporated in 1984 and is based in Norton, Massachusetts.
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.
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