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 $5.0B against $990.4M — 5.0× the size. Ituran Location and Control Ltd. trades at the lower P/E: 15.4× against 84.6×. 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 15.37 84.55 28.21
P/S 2.50 5.35 4.46
P/B 4.37 3.41 3.10
Price to free cash flow 12.23 50.54 24.15
EV/EBITDA 8.39 32.65 18.28
EV/Sales 2.24 4.88 4.64
Earnings yield 6.51% 1.18% 0.68%
Free cash flow yield 8.17% 1.98% 1.98%

Profitability

Metric ITRN NOVT Scientific & Technical Instruments median
Gross margin 49.95% 44.54% 47.24%
Operating margin 21.83% 8.96% 8.96%
Net margin 16.28% 6.00% 1.92%
Free cash flow margin 20.47% 10.59% 10.59%
Return on equity 30.72% 5.11% 2.66%
Return on assets 16.57% 3.38% 1.12%
Return on invested capital 44.04% 5.12% 4.79%

Growth

Metric ITRN NOVT Scientific & Technical Instruments median
Revenue growth (TTM) 15.79% 7.61% 9.26%
EPS growth (last fiscal year) 8.15% (16.95%) 13.24%
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 2.30
Net debt to EBITDA (1.12) (0.83) 0.45

Dividend

Metric ITRN NOVT Scientific & Technical Instruments median
Dividend yield 6.02% — 0.62%
Payout ratio 0.93 — 0.22

Size

Metric ITRN NOVT Scientific & Technical Instruments median
Market cap 990.39m 4.99b 549.07m

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