Novanta (NASDAQ:NOVT) versus Eltek (NASDAQ:ELTK) Head-To-Head Comparison

Novanta (NASDAQ:NOVT – Get Free Report) and Eltek (NASDAQ:ELTK – Get Free Report) are both technology companies, but which is the superior investment? We will contrast the two businesses based on the strength of their earnings, risk, analyst recommendations, valuation, institutional ownership, dividends and profitability.

Profitability

This table compares Novanta and Eltek’s net margins, return on equity and return on assets.

Risk and Volatility

Novanta has a beta of 1.72, indicating that its stock price is 72% more volatile than the S&P 500. Comparatively, Eltek has a beta of 0.68, indicating that its stock price is 32% less volatile than the S&P 500.

Insider & Institutional Ownership

98.3% of Novanta shares are held by institutional investors. Comparatively, 64.6% of Eltek shares are held by institutional investors. 1.2% of Novanta shares are held by insiders. Comparatively, 72.0% of Eltek shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Valuation & Earnings

This table compares Novanta and Eltek”s top-line revenue, earnings per share and valuation.

Novanta has higher revenue and earnings than Eltek. Eltek is trading at a lower price-to-earnings ratio than Novanta, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a breakdown of recent recommendations for Novanta and Eltek, as reported by MarketBeat.

Novanta presently has a consensus price target of $194.00, suggesting a potential upside of 35.12%. Given Novanta’s stronger consensus rating and higher possible upside, equities analysts plainly believe Novanta is more favorable than Eltek.

Summary

Novanta beats Eltek on 14 of the 15 factors compared between the two stocks.

About Novanta

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Novanta, Inc. engages in the provision of core technology solutions to healthcare and advanced industrial original equipment manufacturers. It operates through the following segments: Photonics, Vision, and Precision Motion. The Photonics segment designs, manufactures, and markets photonics-based solutions, including laser scanning and laser beam delivery, CO2 laser, continuous wave and ultrafast laser, and optical light engine products. The Vision segment offers a range of medical grade technologies, including medical insufflators, pumps and related disposables, surgical displays and operating room integration technologies, optical data collection and machine vision technologies, radio frequency identification technologies, thermal printers, spectrometry technologies, and embedded touch screen solutions. The Precision Motion segment includes optical encoders, precision motor and motion control technology, air bearing spindles, and precision machined components to customers. The company was founded in 1968 and is headquartered in Bedford, MA.

About Eltek

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Eltek Ltd. manufactures, markets, and sells printed circuit boards (PCBs) in Israel, Europe, North America, India, the Netherlands, and internationally. It offers a range of custom designed PCBs, including rigid, double-sided and multi-layer PCBs, and flexible circuitry boards. The company also provides high density interconnect, flex-rigid, and multi-layered boards. It primarily serves medical technology, defense and aerospace, industrial, telecom, and networking equipment industries, as well as contract electronic manufacturers. The company markets and sells its products primarily through direct sales personnel, sales representatives, and PCB trading and manufacturing companies. Eltek Ltd. was incorporated in 1970 and is headquartered in Petah Tikva, Israel. Eltek Ltd. operates as a subsidiary of Nistec Golan Ltd.