Badger Meter, Inc. (BMI) vs Novanta Inc. (NOVT)

Badger Meter, Inc. and Novanta Inc. are both Scientific & Technical Instruments companies. Novanta Inc. is the larger, with a market value of $5.4B against $3.8B — 1.4× the size. Badger Meter, Inc. trades at the lower P/E: 30.2× against 90.6×. Novanta Inc. grew revenue faster over the last twelve months: 7.61% against 0.80%. Badger Meter, Inc. has the higher net margin (14.3% vs 6.00%) and the higher return on invested capital (17.4% vs 5.12%). Across the 22 metrics below, Badger Meter, Inc. leads on 18 and Novanta Inc. on 4.

Valuation

Metric BMI NOVT Scientific & Technical Instruments median
P/E 30.18 90.57 35.93
P/S 4.27 5.74 4.46
P/B 5.51 3.65 3.00
Price to free cash flow 25.02 54.14 24.96
EV/EBITDA 18.31 35.20 19.60
EV/Sales 4.16 5.26 4.98
Earnings yield 3.31% 1.10% 0.53%
Free cash flow yield 4.00% 1.85% 1.12%

Profitability

Metric BMI NOVT Scientific & Technical Instruments median
Gross margin 41.31% 44.54% 45.75%
Operating margin 18.58% 8.96% 7.34%
Net margin 14.27% 6.00% 1.56%
Free cash flow margin 17.06% 10.59% 5.84%
Return on equity 18.48% 5.11% 2.87%
Return on assets 13.00% 3.38% 0.99%
Return on invested capital 17.42% 5.12% 3.88%

Growth

Metric BMI NOVT Scientific & Technical Instruments median
Revenue growth (TTM) 0.80% 7.61% 11.28%
EPS growth (last fiscal year) 13.24% (16.95%) —
Revenue growth, 5-year CAGR 16.59% 10.67% 7.89%
Net income growth, 5-year CAGR 23.48% 3.87% 0.00%

Health

Metric BMI NOVT Scientific & Technical Instruments median
Debt to equity 0.00 0.14 0.00
Current ratio 2.42 4.57 2.24
Net debt to EBITDA (1.04) (0.83) 0.44

Dividend

Metric BMI NOVT Scientific & Technical Instruments median
Dividend yield 0.72% — 0.72%
Payout ratio 0.34 0.00 0.00

Size

Metric BMI NOVT Scientific & Technical Instruments median
Market cap 3.79b 5.35b 483.67m

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