Novanta (NASDAQ:NOVT – Get Free Report) and Eltek (NASDAQ:ELTK – Get Free Report) are both technology companies, but which is the superior business? We will compare the two businesses based on the strength of their institutional ownership, risk, dividends, valuation, earnings, analyst recommendations and profitability.
Insider and Institutional Ownership
98.3% of Novanta shares are owned by institutional investors. Comparatively, 64.6% of Eltek shares are owned by institutional investors. 1.2% of Novanta shares are owned by company insiders. Comparatively, 72.0% of Eltek shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.
Valuation and Earnings
This table compares Novanta and Eltek”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Novanta | $980.60 million | 5.54 | $53.83 million | $1.56 | 92.04 |
| Eltek | $51.79 million | 1.02 | $830,000.00 | ($0.91) | -8.60 |
Novanta has higher revenue and earnings than Eltek. Eltek is trading at a lower price-to-earnings ratio than Novanta, indicating that it is currently the more affordable of the two stocks.
Analyst Ratings
This is a summary of recent recommendations for Novanta and Eltek, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Novanta | 0 | 1 | 1 | 1 | 3.00 |
| Eltek | 1 | 0 | 0 | 0 | 1.00 |
Novanta presently has a consensus target price of $194.00, suggesting a potential upside of 35.12%. Given Novanta’s stronger consensus rating and higher probable upside, equities analysts clearly believe Novanta is more favorable than Eltek.
Profitability
This table compares Novanta and Eltek’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Novanta | 6.00% | 10.83% | 7.53% |
| Eltek | -12.66% | -13.57% | -9.01% |
Risk & Volatility
Novanta has a beta of 1.72, suggesting that its stock price is 72% more volatile than the S&P 500. Comparatively, Eltek has a beta of 0.68, suggesting that its stock price is 32% less volatile than the S&P 500.
Summary
Novanta beats Eltek on 14 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 Eltek
Eltek Ltd. manufactures, markets, and sells printed circuit boards (PCBs) in Israel, Europe, North America, India, the Netherlands, and internationally. It offers a range of custom designed PCBs, including rigid, double-sided and multi-layer PCBs, and flexible circuitry boards. The company also provides high density interconnect, flex-rigid, and multi-layered boards. It primarily serves medical technology, defense and aerospace, industrial, telecom, and networking equipment industries, as well as contract electronic manufacturers. The company markets and sells its products primarily through direct sales personnel, sales representatives, and PCB trading and manufacturing companies. Eltek Ltd. was incorporated in 1970 and is headquartered in Petah Tikva, Israel. Eltek Ltd. operates as a subsidiary of Nistec Golan Ltd.
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