Bel Fuse (BELFB) versus Novanta (GSIG) Critical Review
Bel Fuse (NASDAQ: BELFB) and Novanta (NASDAQ:GSIG) are both computer and technology companies, but which is the superior investment? We will contrast the two companies based on the strength of their dividends, risk, valuation, profitability, earnings, analyst recommendations and institutional ownership.
Bel Fuse pays an annual dividend of $0.28 per share and has a dividend yield of 1.1%. Novanta does not pay a dividend. Bel Fuse pays out 20.6% of its earnings in the form of a dividend.
This is a breakdown of current ratings and price targets for Bel Fuse and Novanta, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Bel Fuse presently has a consensus price target of $39.00, suggesting a potential upside of 50.00%. Given Bel Fuse’s higher possible upside, analysts plainly believe Bel Fuse is more favorable than Novanta.
This table compares Bel Fuse and Novanta’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Insider and Institutional Ownership
60.6% of Bel Fuse shares are owned by institutional investors. 8.8% of Bel Fuse shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.
Valuation and Earnings
This table compares Bel Fuse and Novanta’s gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Bel Fuse||$492.63 million||0.64||$46.37 million||$1.36||19.12|
Bel Fuse has higher revenue and earnings than Novanta.
Bel Fuse beats Novanta on 6 of the 10 factors compared between the two stocks.
Bel Fuse Company Profile
Bel Fuse Inc. (Bel) designs, manufactures and markets a range of products that power, protect and connect electronic circuits. The Company’s products include magnetic solutions, power solutions and protection, and connectivity solutions. The Company’s operating segments are North America, Asia and Europe. The Company markets magnetic solutions under the brand names, including Bel, TRP, MagJack and Signal. The Company markets power solutions and protection under the brand names, which include Bel Power Solutions, Power-One and Melcher. The Company markets connectivity solutions under the brand names Stratos, Fibreco, Cinch, Johnson, Trompeter, Midwest Microwave, Semflex and Stewart Connector. The Company’s products are used in the networking, telecommunications, computing, military, aerospace, transportation and broadcasting industries. Bel’s portfolio of products has application in the automotive, medical and consumer electronics markets.
Novanta Company Profile
Novanta Inc., formerly GSI Group Inc., designs, develops, manufactures and sells precision photonic and motion control components and subsystems. The Company’s segments are Photonics, Vision and Precision Motion. The Photonics segment designs, manufactures and markets photonics-based solutions, including carbon dioxide (CO2) laser sources, laser scanning and laser beam delivery products, to customers around the world. The Vision Technologies segment designs, manufactures and markets a range of medical grade technologies, including visualization solutions, imaging informatics products, optical data collection and machine vision technologies, radio frequency identification (RFID) technologies, and thermal printers, to customers around the world. The Company’s Precision Motion segment designs, manufactures and markets optical encoders, precision motors and other motion control technology, air bearing spindles and precision machined components to customers around the world.
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