ICZOOM Group (NASDAQ:IZM) & Novanta (NASDAQ:NOVT) Head to Head Analysis

Novanta (NASDAQ:NOVT) and ICZOOM Group (NASDAQ:IZM) are both computer and technology companies, but which is the superior business? We will contrast the two businesses based on the strength of their risk, dividends, earnings, valuation, institutional ownership, profitability and analyst recommendations.

Risk & Volatility

Novanta has a beta of 1.59, suggesting that its stock price is 59% more volatile than the S&P 500. Comparatively, ICZOOM Group has a beta of 2.04, suggesting that its stock price is 104% more volatile than the S&P 500.

Profitability

This table compares Novanta and ICZOOM Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Novanta	5.50%	14.53%	7.82%
ICZOOM Group	N/A	N/A	N/A

Valuation & Earnings

This table compares Novanta and ICZOOM Group”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Novanta	$949.24 million	4.43	$64.09 million	$1.47	79.88
ICZOOM Group	$187.05 million	0.04	$1.19 million	N/A	N/A

Novanta has higher revenue and earnings than ICZOOM Group.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Novanta and ICZOOM Group, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Novanta	1	2	0	0	1.67
ICZOOM Group	1	0	0	0	1.00

Novanta presently has a consensus price target of $133.00, indicating a potential upside of 13.27%. Given Novanta’s stronger consensus rating and higher probable upside, equities analysts plainly believe Novanta is more favorable than ICZOOM Group.

Insider & Institutional Ownership

98.4% of Novanta shares are owned by institutional investors. Comparatively, 34.3% of ICZOOM Group shares are owned by institutional investors. 1.2% of Novanta shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Summary

Novanta beats ICZOOM Group on 10 of the 11 factors compared between the two stocks.

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.

About ICZOOM Group

ICZOOM Group Inc., together with its subsidiaries, sells electronic component products to customers in Hong Kong and the People's Republic of China. The company provides semiconductor products, including various integrated circuit, discretes, passive components, and optoelectronics; and equipment, tools, and other electronic component products comprising various electromechanical, maintenance, repair and operations, and various design tools. Its products are used by small and medium-sized enterprises in the consumer electronic industry, Internet of Things, automotive electronics, and industry control segment. The company sells its products through its online platform. It also offers customs clearance, temporary warehousing, logistic, and shipping services. The company was formerly known as Horizon Business Intelligence Co., Limited and changed its name to ICZOOM Group Inc. in May 2018. ICZOOM Group Inc. was founded in 2012 and is headquartered in Shenzhen, the People's Republic of China.