Head-To-Head Contrast: TTM Technologies (NASDAQ:TTMI) and Novanta (NASDAQ:NOVT)

TTM Technologies (NASDAQ:TTMI) and Novanta (NASDAQ:NOVT) are both computer and technology companies, but which is the better business? We will compare the two companies based on the strength of their valuation, dividends, institutional ownership, analyst recommendations, risk, earnings and profitability.

Volatility & Risk

TTM Technologies has a beta of 2.09, suggesting that its share price is 109% more volatile than the S&P 500. Comparatively, Novanta has a beta of 1.68, suggesting that its share price is 68% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent ratings and price targets for TTM Technologies and Novanta, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
TTM Technologies	0	0	5	1	3.17
Novanta	0	2	1	0	2.33

TTM Technologies presently has a consensus price target of $209.00, indicating a potential upside of 7.70%. Novanta has a consensus price target of $180.00, indicating a potential upside of 12.13%. Given Novanta’s higher probable upside, analysts plainly believe Novanta is more favorable than TTM Technologies.

Valuation & Earnings

This table compares TTM Technologies and Novanta”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
TTM Technologies	$2.91 billion	6.93	$177.45 million	$1.85	104.89
Novanta	$1.00 billion	5.69	$53.83 million	$1.38	116.33

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
TTM Technologies	6.29%	13.70%	6.29%
Novanta	5.35%	12.06%	7.70%

Insider & Institutional Ownership

95.8% of TTM Technologies shares are held by institutional investors. Comparatively, 98.3% of Novanta shares are held by institutional investors. 1.3% of TTM Technologies shares are held by insiders. Comparatively, 1.2% of Novanta shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Summary

TTM Technologies beats Novanta on 11 of the 15 factors compared between the two stocks.

About TTM Technologies

TTM Technologies, Inc., together with its subsidiaries, manufactures and sells mission systems, radio frequency (RF) components and RF microwave/microelectronic assemblies, and printed circuit boards (PCB) worldwide. The company operates in two segments, PCB and RF&S Components. It offers range of engineered systems, RF and microwave assemblies, HDI PCBs, flexible PCBs, rigid-flex PCBs, custom assemblies and system integration, IC substrates, passive RF components, advanced ceramic RF components, hi-reliability multi-chip modules, beamforming and switching networks, PCB products, RF components, and backplane/custom assembly solutions, including conventional PCBs. It also provides advanced ceramic RF components including standard and etched thick-film ceramic substrates; and hi-reliability multi-chip modules. In addition, the company offers radar systems including maritime surveillance and weather avoidance radar systems, surveillance products, communication systems, RF assembly and test services, and passive RF components. Further, the company provides custom designed application specific integrated circuits, high density interconnect, IC substrates, flexible and rigid flex PCBs, and custom assemblies including backplane and mid-plane assemblies, flexible and rigid-flex assemblies, and RF assemblies, as well as conventional PCBs, such as single-sided, double-sided, and multi-layer boards. Additionally, it offers quick turnaround services, which includes prototype production and ramp-to-volume production, and thermal management. The company serves original equipment manufacturers and electronic manufacturing services providers, original design manufacturers, distributors, and government agencies; and aerospace and defense, data center computing, automotive, medical, industrial, and instrumentation, as well as networking applications. TTM Technologies, Inc. was incorporated in 1978 and is headquartered in Santa Ana, California.

About Novanta

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.