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

Novanta Inc. and Vontier Corporation are both Scientific & Technical Instruments companies. Novanta Inc. is the larger, with a market value of $5.4B against $4.2B — 1.3× the size. Vontier Corporation trades at the lower P/E: 13.0× against 90.6×. Novanta Inc. grew revenue faster over the last twelve months: 7.61% against 0.88%. Vontier Corporation has the higher net margin (11.3% vs 6.00%) and the higher return on invested capital (14.3% 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 90.57 12.95 35.93
P/S 5.74 1.43 4.46
P/B 3.65 3.66 3.00
Price to free cash flow 54.14 11.41 24.96
EV/EBITDA 35.20 8.23 19.60
EV/Sales 5.26 1.87 4.98
Earnings yield 1.10% 7.72% 0.53%
Free cash flow yield 1.85% 8.76% 1.12%

Profitability

Metric NOVT VNT Scientific & Technical Instruments median
Gross margin 44.54% 47.18% 45.75%
Operating margin 8.96% 18.79% 7.34%
Net margin 6.00% 11.34% 1.56%
Free cash flow margin 10.59% 12.55% 5.84%
Return on equity 5.11% 28.90% 2.87%
Return on assets 3.38% 8.28% 0.99%
Return on invested capital 5.12% 14.25% 3.88%

Growth

Metric NOVT VNT Scientific & Technical Instruments median
Revenue growth (TTM) 7.61% 0.88% 11.28%
EPS growth (last fiscal year) (16.95%) 0.36% —
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 1.33 0.00
Current ratio 4.57 1.25 2.24
Net debt to EBITDA (0.83) 1.60 0.44

Dividend

Metric NOVT VNT Scientific & Technical Instruments median
Dividend yield — 0.14% 0.72%
Payout ratio 0.00 0.05 0.00

Size

Metric NOVT VNT Scientific & Technical Instruments median
Market cap 5.35b 4.18b 483.67m

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