Inno (NASDAQ:INHD – Get Free Report) and Novanta (NASDAQ:NOVT – Get Free Report) are both technology companies, but which is the superior investment? We will compare the two businesses based on the strength of their valuation, analyst recommendations, profitability, institutional ownership, risk, dividends and earnings.
Risk and Volatility
Inno has a beta of -23.22, indicating that its share price is 2,422% less volatile than the S&P 500. Comparatively, Novanta has a beta of 1.72, indicating that its share price is 72% more volatile than the S&P 500.
Insider & Institutional Ownership
0.2% of Inno shares are held by institutional investors. Comparatively, 98.3% of Novanta shares are held by institutional investors. 0.1% of Inno shares are held by insiders. Comparatively, 1.2% of Novanta shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.
Profitability
This table compares Inno and Novanta’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Inno | -72.63% | -9.47% | -9.36% |
| Novanta | 6.00% | 10.83% | 7.53% |
Earnings and Valuation
This table compares Inno and Novanta”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Inno | $2.85 million | 3.40 | -$7.08 million | ($5.90) | -0.65 |
| Novanta | $1.03 billion | 5.55 | $53.83 million | $1.56 | 96.91 |
Novanta has higher revenue and earnings than Inno. Inno is trading at a lower price-to-earnings ratio than Novanta, indicating that it is currently the more affordable of the two stocks.
Analyst Ratings
This is a breakdown of current ratings and recommmendations for Inno and Novanta, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Inno | 1 | 0 | 0 | 0 | 1.00 |
| Novanta | 0 | 2 | 1 | 0 | 2.33 |
Novanta has a consensus price target of $194.00, suggesting a potential upside of 28.32%. Given Novanta’s stronger consensus rating and higher probable upside, analysts plainly believe Novanta is more favorable than Inno.
Summary
Novanta beats Inno on 14 of the 14 factors compared between the two stocks.
About Inno
Inno Holdings Inc. manufactures and sells cold-formed-steel members, castor cubes, mobile factories, and prefabricated homes in the United States. The company provides cold-formed steel framing and a mobile factory for off-site equipment rental, sales, service, and support. It serves in residential, commercial, industrial, and infrastructure projects. Inno Holdings Inc. was founded in 2019 and is headquartered in Brookshire, Texas.
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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