Garmin Ltd. (GRMN)’s Financial Results Comparing With Novanta Inc. (NASDAQ:NOVT)

As Scientific & Technical Instruments companies, Garmin Ltd. (NASDAQ:GRMN) and Novanta Inc. (NASDAQ:NOVT) are our subject to contrast. And more specifically their institutional ownership, earnings and valuation, profitability, risk, dividends, analyst recommendations.

Earnings & Valuation

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Garmin Ltd. 3.35B 4.75 694.08M 3.66 23.17
Novanta Inc. 614.34M 4.77 50.89M 1.23 66.51

Demonstrates Garmin Ltd. and Novanta Inc. earnings per share (EPS), top-line revenue and valuation. Novanta Inc. is observed to has lower revenue and earnings than Garmin Ltd. The company that is more affordable between the two has a lower price-to-earnings ratio. Garmin Ltd. is thus presently the affordable of the two stocks because it has a lower price-to-earnings ratio.

Profitability

Table 2 provides the return on equity, return on assets and net margins of the two firms.

Net Margins Return on Equity Return on Assets
Garmin Ltd. 20.72% 17.5% 13.7%
Novanta Inc. 8.28% 14.3% 6.6%

Risk & Volatility

Garmin Ltd. has a 0.96 beta, while its volatility is 4.00%, thus making it less volatile than Standard and Poor’s 500. Novanta Inc. on the other hand, has 1.51 beta which makes it 51.00% more volatile compared to Standard and Poor’s 500.

Liquidity

Garmin Ltd.?s Current Ratio is 2.9 while its Quick Ratio is 2.3. On the competitive side is, Novanta Inc. which has a 2.7 Current Ratio and a 1.7 Quick Ratio. Garmin Ltd. is better positioned to pay off short and long-term obligations compared to Novanta Inc.

Dividends

Garmin Ltd. pays out an annual dividend of $2.12 per share while its dividend yield is 2.51%. Novanta Inc. does not offer a dividend.

Analyst Ratings

The Ratings and Recommendations for Garmin Ltd. and Novanta Inc. are featured in the next table.

Sell Ratings Hold Ratings Buy Ratings Rating Score
Garmin Ltd. 1 2 0 2.67
Novanta Inc. 0 1 0 2.00

$75.75 is Garmin Ltd.?s consensus target price while its potential downside is -9.76%. Meanwhile, Novanta Inc.?s consensus target price is $81, while its potential downside is -3.50%. The data from earlier shows that analysts opinion suggest that Novanta Inc. seems more appealing than Garmin Ltd.

Insider and Institutional Ownership

The shares of both Garmin Ltd. and Novanta Inc. are owned by institutional investors at 46.1% and 87.3% respectively. Insiders owned 1.2% of Garmin Ltd. shares. Competitively, insiders own roughly 4.1% of Novanta Inc.?s shares.

Performance

In this table we show the Weekly, Monthly, Quarterly, Half Yearly, Yearly and YTD Performance of both pretenders.

Performance (W) Performance (M) Performance (Q) Performance (HY) Performance (Y) Performance (YTD)
Garmin Ltd. 1.42% 22.49% 27.66% 24.42% 43.97% 33.83%
Novanta Inc. 3.43% 17.21% 21.91% 5.11% 45.97% 29.63%

For the past year Garmin Ltd. was more bullish than Novanta Inc.

Summary

Garmin Ltd. beats on 13 of the 16 factors Novanta Inc.

Garmin Ltd., together with its subsidiaries, designs, develops, manufactures, markets, and distributes a range of navigation, communication, and information devices worldwide. It operates through five segments: Auto, Aviation, Marine, Outdoor, and Fitness. The Auto segment offers personal navigation devices; infotainment solutions; and action cameras, as well as mobile applications under the Garmin and NAVIGON names. The Aviation segment provides navigation, communication, flight control, hazard avoidance, weather radar, radar altimeter, datalink weather, in-cockpit and cloud connectivity, automated logbook, voice and touch control, and other products and services; wearables, portables, and apps; and traffic collision avoidance, and terrain awareness and warning systems. It also offers controller-pilot data link, a suite of automatic dependent surveillance broadcast solutions. The Marine segment provides chartplotters and multi-function displays, fish finders, sounders, autopilot systems, radars, compliant instrument displays, VHF communication radios, handhelds and wrist-worn devices, sailing products, and entertainment products. The Outdoor segment offers outdoor handhelds, wearable devices, golf devices, and dog tracking and training/pet obedience devices. The Fitness segment provides running/multi-sport watches, cycling computers, cycling power meters, cycling safety and awareness products, and activity tracking devices, as well as Garmin Connect and Garmin Connect Mobile, which are Web and mobile platforms for users to track and analyze their fitness and wellness data. The company sells its global positioning system receivers and accessories to retail outlets; and aviation products to aviation dealers and aircraft manufacturers through a network of independent dealers and distributors. Garmin Ltd. was founded in 1990 and is based in Schaffhausen, Switzerland.

Novanta Inc., together with its subsidiaries, designs, develops, manufactures, markets, and sells precision photonic and motion control components and subsystems to original equipment manufacturers in the medical equipment and advanced industrial technology markets worldwide. The company operates in three segments: Photonics, Vision, and Precision Motion. The Photonics segment offers photonics-based solutions, including CO2 laser sources, and laser scanning and laser beam delivery products for photonics-based applications, such as industrial material processing, metrology, medical and life science imaging, and medical laser procedures. The Vision segment provides a range of medical grade technologies, including visualization solutions, imaging informatics products, optical data collection and machine vision technologies, RFID technologies, thermal printers, light and color measurement instrumentation, and embedded touch screen solutions. The Precision Motion segment offers optical encoders, precision motor and other motion control technology, air bearing spindles, and precision machined components. The company sells its products through its direct sales force; distributors, including manufacturersÂ’ representatives; resellers; and system integrators under the MicroE, Celera Motion, Westwind, Synrad, Cambridge Technology, ExoTec Precision, General Scanning, Photo Research, JADAK, NDS, NDSsi, Applimotion, Lincoln Laser, Skyetek, and Reach Technology brands. Novanta Inc. was founded in 1968 and is headquartered in Bedford, Massachusetts.