Reviewing Electro Scientific Industries (ESIO) and Novanta (GSIG)
Electro Scientific Industries (NASDAQ: ESIO) and Novanta (NASDAQ:GSIG) are both computer and technology companies, but which is the better stock? We will compare the two companies based on the strength of their analyst recommendations, risk, profitability, valuation, dividends, institutional ownership and earnings.
Institutional and Insider Ownership
73.2% of Electro Scientific Industries shares are held by institutional investors. 6.2% of Electro Scientific Industries shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.
Earnings and Valuation
This table compares Electro Scientific Industries and Novanta’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Electro Scientific Industries||$186.04 million||2.23||$2.78 million||($1.05)||-11.90|
Electro Scientific Industries has higher revenue and earnings than Novanta.
This is a breakdown of recent ratings and price targets for Electro Scientific Industries and Novanta, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Electro Scientific Industries||0||0||2||0||3.00|
Electro Scientific Industries currently has a consensus target price of $10.50, indicating a potential downside of 16.00%. Given Electro Scientific Industries’ higher possible upside, equities research analysts clearly believe Electro Scientific Industries is more favorable than Novanta.
This table compares Electro Scientific Industries and Novanta’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Electro Scientific Industries||-18.49%||-22.18%||-15.53%|
Electro Scientific Industries beats Novanta on 5 of the 8 factors compared between the two stocks.
About Electro Scientific Industries
Electro Scientific Industries, Inc. and its subsidiaries supply laser-based manufacturing solutions for industries reliant on microtechnologies. The Company operates through two segments: Component Processing and Micromachining. The Component Processing segment includes interconnect products, semiconductor products and component products. The interconnect, semiconductor and component products are sold to manufacturers of electronic components and are used to drill, cut, trim, ablate and test and mark features for the functionality of the component. The Micromachining segment includes products that are sold to manufacturers of end devices across various industries and are used to drill, cut or mark features on a range of materials, generally on the casing or external surface of the end device. Its integrated solutions allow industrial designers and process engineers to control the power of laser light to transform materials. It has operations in Asia, Europe and North America.
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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