Novanta Inc. (NOVT) vs Vontier Corporation (VNT)

Novanta Inc. and Vontier Corporation are both Scientific & Technical Instruments companies. Novanta Inc. and Vontier Corporation are of similar size ($5.4B and $5.0B). Vontier Corporation trades at the lower P/E: 17.0× against 84.6×. Novanta Inc. grew revenue faster over the last twelve months: 7.61% against 0.29%. Vontier Corporation has the higher net margin (11.3% vs 6.00%) and the higher return on invested capital (14.5% vs 5.12%). Across the 22 metrics below, Vontier Corporation leads on 15 and Novanta Inc. on 7.

Valuation

Metric NOVT VNT Scientific & Technical Instruments median
P/E 84.55 17.05 28.21
P/S 5.35 1.86 4.46
P/B 3.41 4.67 3.10
Price to free cash flow 50.54 13.61 24.15
EV/EBITDA 32.65 9.98 18.28
EV/Sales 4.88 2.30 4.64
Earnings yield 1.18% 5.87% 0.68%
Free cash flow yield 1.98% 7.35% 1.98%

Profitability

Metric NOVT VNT Scientific & Technical Instruments median
Gross margin 44.54% 47.24% 47.24%
Operating margin 8.96% 19.41% 8.96%
Net margin 6.00% 11.28% 1.92%
Free cash flow margin 10.59% 13.65% 10.59%
Return on equity 5.11% 28.04% 2.66%
Return on assets 3.38% 8.14% 1.12%
Return on invested capital 5.12% 14.51% 4.79%

Growth

Metric NOVT VNT Scientific & Technical Instruments median
Revenue growth (TTM) 7.61% 0.29% 9.26%
EPS growth (last fiscal year) (16.95%) 0.36% 13.24%
Revenue growth, 5-year CAGR 10.67% 2.60% 7.89%
Net income growth, 5-year CAGR 3.87% 3.50% 0.00%

Health

Metric NOVT VNT Scientific & Technical Instruments median
Debt to equity 0.14 1.31 0.00
Current ratio 4.57 1.23 2.30
Net debt to EBITDA (0.83) 1.60 0.45

Dividend

Metric NOVT VNT Scientific & Technical Instruments median
Dividend yield — 0.24% 0.62%
Payout ratio — 0.04 0.22

Size

Metric NOVT VNT Scientific & Technical Instruments median
Market cap 4.99b 5.39b 549.07m

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