HRG Group (NYSE: HRG) and Novanta (NASDAQ:NOVT) are both mid-cap consumer staples companies, but which is the superior stock? We will compare the two businesses based on the strength of their institutional ownership, risk, earnings, dividends, valuation, profitability and analyst recommendations.

Insider & Institutional Ownership

93.4% of HRG Group shares are held by institutional investors. Comparatively, 82.7% of Novanta shares are held by institutional investors. 0.2% of HRG Group shares are held by insiders. Comparatively, 6.7% of Novanta shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Earnings & Valuation

This table compares HRG Group and Novanta’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
HRG Group $5.01 billion 0.53 $106.00 million N/A N/A
Novanta $521.29 million 4.15 $60.05 million $1.60 38.94

HRG Group has higher revenue and earnings than Novanta.

Profitability

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

Net Margins Return on Equity Return on Assets
HRG Group 11.05% -7.35% -0.56%
Novanta 5.14% 20.02% 9.12%

Analyst Recommendations

This is a summary of current ratings and recommmendations for HRG Group and Novanta, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
HRG Group 0 0 0 0 N/A
Novanta 0 1 1 0 2.50

Novanta has a consensus target price of $54.00, suggesting a potential downside of 13.32%. Given Novanta’s higher possible upside, analysts clearly believe Novanta is more favorable than HRG Group.

Volatility and Risk

HRG Group has a beta of 1.53, indicating that its share price is 53% more volatile than the S&P 500. Comparatively, Novanta has a beta of 1.5, indicating that its share price is 50% more volatile than the S&P 500.

Summary

Novanta beats HRG Group on 6 of the 11 factors compared between the two stocks.

About HRG Group

HRG Group, Inc., through its subsidiaries, provides various branded consumer products. It operates through two segments, Consumer Products; and Corporate and Other. Its product portfolio includes consumer batteries, such as alkaline and zinc carbon batteries, nickel metal hydride rechargeable batteries, battery chargers, battery-powered portable lighting products, hearing aid batteries, and other specialty battery products; small appliances comprising small kitchen appliances and home product appliances; and personal care products, such as electric shaving and grooming products, hair care appliances, and accessories. The company's product portfolio also comprises hardware and home improvement products, including residential locksets, door hardware, and plumbing products; pet supplies consisting of aquatics, companion animals, and pet food products; home and garden improvement products, such as outdoor insect and weed control solutions, animal repellents, household pest control solutions, and personal use pesticides for protection from various outdoor nuisance pests; and auto care products, including fuel and oil additives, functional fluids and automotive appearance products, do-it-yourself automotive air conditioner recharge products, and performance chemicals, as well as other refrigerant and oil recharge kits, sealants, and accessories. The company sells its products through retailers, wholesalers and distributors, construction companies, hearing aid professionals, industrial distributors, and original equipment manufacturers in approximately 160 countries in North America, Europe, the Middle East, Africa, Latin America, and the Asia-Pacific. The company was formerly known as Harbinger Group Inc. and changed its name to HRG Group, Inc. in March 2015. HRG Group, Inc. was founded in 1954 and is headquartered in New York, New York.

About Novanta

Novanta Inc., together with its subsidiaries, designs, manufactures, markets, and sells photonics, vision, and precision motion components and sub-systems to original equipment manufacturers in the medical and industrial markets worldwide. The company's Photonics segment offers photonics-based solutions, including laser scanning and laser beam delivery, CO2 laser, continuous wave and ultrafast laser, and optical light engine products for photonics-based applications, such as industrial material processing, metrology, medical and life science imaging, DNA sequencing, and medical laser procedures. Its Vision segment provides 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 company's Precision Motion segment offers optical encoders, precision motor and motion control technology, air bearing spindles, and precision machined components. The company sells its products through its direct sales force, resellers, distributors, and system integrators under the Cambridge Technology, Lincoln Laser, ExoTec Precision, Synrad, Laser Quantum, WOM, Lemke, NDS, NDSsi, Reach Technology, JADAK, Skyetek, ThingMagic, Photo Research, General Scanning, Celera Motion, MicroE, Applimotion, and Westwind brands. Novanta Inc. was founded in 1968 and is headquartered in Bedford, Massachusetts.

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