Cognex Corporation (CGNX) vs Novanta Inc. (NOVT)

Cognex Corporation and Novanta Inc. are both Scientific & Technical Instruments companies. Cognex Corporation is the larger, with a market value of $9.8B against $5.4B — 1.8× the size. Cognex Corporation trades at the lower P/E: 55.9× against 90.6×. Cognex Corporation grew revenue faster over the last twelve months: 17.2% against 7.61%. Cognex Corporation has the higher net margin (16.1% vs 6.00%) and the higher return on invested capital (12.2% vs 5.12%). Across the 22 metrics below, Cognex Corporation leads on 15 and Novanta Inc. on 7.

Valuation

Metric CGNX NOVT Scientific & Technical Instruments median
P/E 55.87 90.57 35.93
P/S 9.01 5.74 4.46
P/B 6.02 3.65 3.00
Price to free cash flow 37.11 54.14 24.96
EV/EBITDA 35.29 35.20 19.60
EV/Sales 8.64 5.26 4.98
Earnings yield 1.79% 1.10% 0.53%
Free cash flow yield 2.69% 1.85% 1.12%

Profitability

Metric CGNX NOVT Scientific & Technical Instruments median
Gross margin 68.87% 44.54% 45.75%
Operating margin 21.90% 8.96% 7.34%
Net margin 16.05% 6.00% 1.56%
Free cash flow margin 25.25% 10.59% 5.84%
Return on equity 11.15% 5.11% 2.87%
Return on assets 8.36% 3.38% 0.99%
Return on invested capital 12.16% 5.12% 3.88%

Growth

Metric CGNX NOVT Scientific & Technical Instruments median
Revenue growth (TTM) 17.15% 7.61% 11.28%
EPS growth (last fiscal year) 9.68% (16.95%) —
Revenue growth, 5-year CAGR 4.16% 10.67% 7.89%
Net income growth, 5-year CAGR (8.27%) 3.87% 0.00%

Health

Metric CGNX NOVT Scientific & Technical Instruments median
Debt to equity 0.00 0.14 0.00
Current ratio 3.93 4.57 2.24
Net debt to EBITDA (1.75) (0.83) 0.44

Dividend

Metric CGNX NOVT Scientific & Technical Instruments median
Dividend yield 0.82% — 0.72%
Payout ratio 0.28 0.00 0.00

Size

Metric CGNX NOVT Scientific & Technical Instruments median
Market cap 9.82b 5.35b 483.67m

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