This is a contrast between Perceptron Inc. (NASDAQ:PRCP) and Novanta Inc. (NASDAQ:NOVT) based on their institutional ownership, profitability, risk, analyst recommendations, dividends, earnings and valuation. The two companies are Scientific & Technical Instruments and they also compete with each other.

Valuation and Earnings

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Perceptron Inc.	87.99M	0.85	4.23M	0.44	17.98
Novanta Inc.	614.34M	4.99	50.89M	1.23	66.51

Table 1 shows top-line revenue, earnings per share and valuation of the two companies. Novanta Inc. is observed to has higher revenue and earnings than Perceptron Inc. Presently more affordable of the two stocks is the company with a lower price-to-earnings ratio. Perceptron Inc.’s shares have been trading at lower price-to-earnings ratio which means it is currently more affordable than Novanta Inc.

Profitability

Table 2 demonstrates the net margins, return on equity and return on assets of Perceptron Inc. and Novanta Inc.

	Net Margins	Return on Equity	Return on Assets
Perceptron Inc.	4.81%	8.9%	5.6%
Novanta Inc.	8.28%	14.3%	6.6%

Volatility and Risk

Perceptron Inc. is 34.00% less volatile than Standard & Poor’s 500 because the stock has a beta of 0.66. Novanta Inc.’s 51.00% more volatile than Standard & Poor’s 500 volatility due to the stock’s 1.51 beta.

Liquidity

Perceptron Inc.’s Current Ratio and Quick Ratio are 2.5 and 2 respectively. The Current Ratio and Quick Ratio of its competitor Novanta Inc. are 2.7 and 1.7 respectively. Novanta Inc. therefore has a better chance of paying off short and long-term obligations compared to Perceptron Inc.

Dividends

Perceptron Inc. pays out its dividends annually at $0.15 per share and 1.95% dividend yield. Novanta Inc. does not offer a dividend.

Analyst Ratings

The Ratings and Recommendations for Perceptron Inc. and Novanta Inc. are featured in the next table.

	Sell Ratings	Hold Ratings	Buy Ratings	Rating Score
Perceptron Inc.	0	0	1	3.00
Novanta Inc.	0	1	0	2.00

Competitively the average price target of Novanta Inc. is $81, which is potential -7.70% downside.

Insider and Institutional Ownership

The shares of both Perceptron Inc. and Novanta Inc. are owned by institutional investors at 73.3% and 87.3% respectively. About 0.6% of Perceptron Inc.’s share are held by insiders. Competitively, 4.1% are Novanta Inc.’s share held by insiders.

Performance

Here are the Weekly, Monthly, Quarterly, Half Yearly, Yearly and YTD Performance of both pretenders.

	Performance (W)	Performance (M)	Performance (Q)	Performance (HY)	Performance (Y)	Performance (YTD)
Perceptron Inc.	4.58%	1.82%	-1.52%	-30.31%	-14.41%	-3.8%
Novanta Inc.	3.43%	17.21%	21.91%	5.11%	45.97%	29.63%

For the past year Perceptron Inc. had bearish trend while Novanta Inc. had bullish trend.

Summary

On 14 of the 15 factors Novanta Inc. beats Perceptron Inc.

Perceptron, Inc. develops, produces, and sells various automated industrial metrology products and solutions to manufacturing organizations for dimensional gauging, dimensional inspection, and 3D scanning in the Americas, Europe, and Asia. It provides various in-line and near-line measurement solutions, including AutoGauge, AutoFit, AutoScan, AutoGuide, and Helix engineered metrology systems for industrial automated process control and assembly using fixed and robot mounted laser scanners; and off-line measurement solutions comprising Coord3 and TouchDMIS for industrial gauging and dimensional inspection using standalone robot mounted laser scanners and coordinate measuring machines. The company also offers laser-based sensors and software comprising WheelWorks product that targets the digitizing, reverse engineering, inspection, and original equipment manufacturers wheel alignment markets. In addition, it offers value added services consisting of training, field, calibration, launch support, consulting, and repair services, as well as equipment and software maintenance agreements. The company markets its products directly to end user customers through manufacturing line builders, system integrators, value-added resellers, and original equipment manufacturers. Perceptron, Inc. was founded in 1981 and is headquartered in Plymouth, Michigan.

Novanta Inc., together with its subsidiaries, designs, develops, manufactures, markets, and sells precision photonic and motion control components and subsystems to original equipment manufacturers in the medical equipment and advanced industrial technology markets worldwide. The company operates in three segments: Photonics, Vision, and Precision Motion. The Photonics segment offers photonics-based solutions, including CO2 laser sources, and laser scanning and laser beam delivery products for photonics-based applications, such as industrial material processing, metrology, medical and life science imaging, and medical laser procedures. The Vision segment provides a range of medical grade technologies, including visualization solutions, imaging informatics products, optical data collection and machine vision technologies, RFID technologies, thermal printers, light and color measurement instrumentation, and embedded touch screen solutions. The Precision Motion segment offers optical encoders, precision motor and other motion control technology, air bearing spindles, and precision machined components. The company sells its products through its direct sales force; distributors, including manufacturersÂ’ representatives; resellers; and system integrators under the MicroE, Celera Motion, Westwind, Synrad, Cambridge Technology, ExoTec Precision, General Scanning, Photo Research, JADAK, NDS, NDSsi, Applimotion, Lincoln Laser, Skyetek, and Reach Technology brands. Novanta Inc. was founded in 1968 and is headquartered in Bedford, Massachusetts.