A2Z Cust2Mate Solutions (NASDAQ:AZ – Get Free Report) and Novanta (NASDAQ:NOVT – Get Free Report) are both technology companies, but which is the superior investment? We will contrast the two companies based on the strength of their profitability, dividends, institutional ownership, earnings, analyst recommendations, risk and valuation.
Insider & Institutional Ownership
12.6% of A2Z Cust2Mate Solutions shares are held by institutional investors. Comparatively, 98.3% of Novanta shares are held by institutional investors. 27.9% of A2Z Cust2Mate Solutions 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 company is poised for long-term growth.
Volatility & Risk
A2Z Cust2Mate Solutions has a beta of 1.16, suggesting that its stock price is 16% more volatile than the S&P 500. Comparatively, Novanta has a beta of 1.68, suggesting that its stock price is 68% more volatile than the S&P 500.
Analyst Ratings
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| A2Z Cust2Mate Solutions | 1 | 1 | 2 | 0 | 2.25 |
| Novanta | 0 | 1 | 1 | 1 | 3.00 |
A2Z Cust2Mate Solutions presently has a consensus target price of $15.00, indicating a potential upside of 144.10%. Novanta has a consensus target price of $194.00, indicating a potential upside of 32.70%. Given A2Z Cust2Mate Solutions’ higher possible upside, analysts plainly believe A2Z Cust2Mate Solutions is more favorable than Novanta.
Profitability
This table compares A2Z Cust2Mate Solutions and Novanta’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| A2Z Cust2Mate Solutions | -241.67% | -49.91% | -43.81% |
| Novanta | 6.00% | 10.83% | 7.53% |
Valuation and Earnings
This table compares A2Z Cust2Mate Solutions and Novanta”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| A2Z Cust2Mate Solutions | $7.90 million | 34.65 | -$37.74 million | ($0.83) | -7.40 |
| Novanta | $1.03 billion | 5.37 | $53.83 million | $1.56 | 93.72 |
Novanta has higher revenue and earnings than A2Z Cust2Mate Solutions. A2Z Cust2Mate Solutions is trading at a lower price-to-earnings ratio than Novanta, indicating that it is currently the more affordable of the two stocks.
Summary
Novanta beats A2Z Cust2Mate Solutions on 11 of the 15 factors compared between the two stocks.
About A2Z Cust2Mate Solutions
A2Z Smart Technologies Corp., a technology company, focuses on the development and commercialization of retail smart cart solutions for grocery stores and supermarkets in Israel and internationally. The company operates through three segments: Precision Metal Parts, Advanced Engineering, and Smart Carts. It offers Cust2Mate system, which incorporates a smart cart that automatically calculates the value of the customers purchases in their smart cart without having to unload and reload their purchases at a customer checkout point. The company also manufactures and sells precision metal parts; provides retail automation solutions; and develops Fuel Tank Inertia Capsule System technology (FTICS), a vehicle device cover for the military and civilian automotive industry. In addition, it provides maintenance services utilizing the application of advanced engineering capabilities to the military and security markets, as well as develops related products for the civilian and retail markets; container leasing services; and maintenance services for complex electronic systems and products. It serves its products to grocery stores, hardware stores, household essentials, do it yourself (DIY) retailers, discount stores, warehouse stores, convenience stores, drug stores, duty free shops, and similar outlets. The company is headquartered in Vancouver, Canada.
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.
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