Ituran Location and Control Ltd. (ITRN) vs Novanta Inc. (NOVT)

Ituran Location and Control Ltd. and Novanta Inc. are both Scientific & Technical Instruments companies. Novanta Inc. is the larger, with a market value of $5.1B against $990.9M — 5.1× the size. Ituran Location and Control Ltd. trades at the lower P/E: 15.3× against 81.0×. Ituran Location and Control Ltd. grew revenue faster over the last twelve months: 15.8% against 7.61%. Ituran Location and Control Ltd. has the higher net margin (16.3% vs 6.00%) and the higher return on invested capital (44.0% vs 5.12%). Across the 22 metrics below, Ituran Location and Control Ltd. leads on 19 and Novanta Inc. on 3.

Valuation

Metric ITRN NOVT Scientific & Technical Instruments median
P/E 15.34 81.00 33.25
P/S 2.50 5.13 4.50
P/B 4.36 3.27 2.90
Price to free cash flow 12.21 48.42 24.81
EV/EBITDA 8.37 31.15 17.92
EV/Sales 2.24 4.65 4.71
Earnings yield 6.52% 1.23% 0.60%
Free cash flow yield 8.19% 2.07% 1.27%

Profitability

Metric ITRN NOVT Scientific & Technical Instruments median
Gross margin 49.95% 44.54% 45.75%
Operating margin 21.83% 8.96% 7.34%
Net margin 16.28% 6.00% 1.56%
Free cash flow margin 20.47% 10.59% 5.84%
Return on equity 30.72% 5.11% 2.87%
Return on assets 16.57% 3.38% 0.99%
Return on invested capital 44.04% 5.12% 3.88%

Growth

Metric ITRN NOVT Scientific & Technical Instruments median
Revenue growth (TTM) 15.79% 7.61% 11.15%
EPS growth (last fiscal year) 8.15% (16.95%) 11.47%
Revenue growth, 5-year CAGR 7.89% 10.67% 7.89%
Net income growth, 5-year CAGR 29.17% 3.87% 0.00%

Health

Metric ITRN NOVT Scientific & Technical Instruments median
Debt to equity 0.00 0.14 0.00
Current ratio 2.03 4.57 2.24
Net debt to EBITDA (1.12) (0.83) 0.44

Dividend

Metric ITRN NOVT Scientific & Technical Instruments median
Dividend yield 6.04% — 0.58%
Payout ratio 0.93 — 0.36

Size

Metric ITRN NOVT Scientific & Technical Instruments median
Market cap 990.89m 5.10b 444.25m

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