Acorn Energy (NASDAQ:ACFN – Get Free Report) and Novanta (NASDAQ:NOVT – Get Free Report) are both technology companies, but which is the better investment? We will compare the two businesses based on the strength of their valuation, risk, analyst recommendations, profitability, institutional ownership, dividends and earnings.
Analyst Recommendations
This is a summary of current ratings for Acorn Energy and Novanta, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Acorn Energy | 0 | 1 | 0 | 0 | 2.00 |
| Novanta | 0 | 1 | 1 | 1 | 3.00 |
Novanta has a consensus target price of $194.00, suggesting a potential upside of 33.21%. Given Novanta’s stronger consensus rating and higher possible upside, analysts clearly believe Novanta is more favorable than Acorn Energy.
Earnings & Valuation
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Acorn Energy | $9.57 million | 4.94 | $2.51 million | $0.61 | 30.85 |
| Novanta | $1.03 billion | 5.35 | $53.83 million | $1.56 | 93.35 |
Novanta has higher revenue and earnings than Acorn Energy. Acorn Energy is trading at a lower price-to-earnings ratio than Novanta, indicating that it is currently the more affordable of the two stocks.
Volatility and Risk
Acorn Energy has a beta of 0.24, meaning that its share price is 76% less volatile than the S&P 500. Comparatively, Novanta has a beta of 1.68, meaning that its share price is 68% more volatile than the S&P 500.
Profitability
This table compares Acorn Energy and Novanta’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Acorn Energy | 16.12% | 10.06% | 6.32% |
| Novanta | 6.00% | 10.83% | 7.53% |
Institutional and Insider Ownership
98.3% of Novanta shares are owned by institutional investors. 35.6% of Acorn Energy shares are owned by company insiders. Comparatively, 1.2% of Novanta shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.
Summary
Novanta beats Acorn Energy on 13 of the 15 factors compared between the two stocks.
About Acorn Energy
Acorn Energy, Inc., through its subsidiaries, develops and markets wireless remote monitoring and control systems for various markets in the United States and internationally. It operates through two segments, Power Generation (PG) Monitoring and Cathodic Protection (CP) Monitoring. The PG segment provides wireless remote monitoring and control systems, and services for critical assets, which include stand-by power generators, compressors, pumps, pumpjacks, light towers, turbines, and other industrial equipment; and Internet of Things applications. The CP segment offers remote monitoring of cathodic protection systems on gas pipelines for gas utilities and pipeline companies. The company was incorporated in 1986 and is based in Wilmington, Delaware.
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.
Receive News & Ratings for Acorn Energy Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Acorn Energy and related companies with MarketBeat.com's FREE daily email newsletter.
