In the rapidly evolving healthcare landscape, two companies stand out for their innovative approaches: Intuitive Surgical, Inc. (ISRG) and Novanta Inc. (NOVT). Both operate within the medical field, yet they tackle different aspects of healthcare technology—Intuitive Surgical focuses on minimally invasive surgical systems, while Novanta specializes in precision motion and photonics solutions. In this article, I will analyze these companies to help you determine which one may be the more compelling investment opportunity.
Table of contents
Company Overview
Intuitive Surgical, Inc. Overview
Intuitive Surgical, Inc. (ISRG) is a leading innovator in the medical devices sector, primarily focused on enhancing surgical procedures through minimally invasive technology. The company’s flagship product, the da Vinci Surgical System, allows surgeons to perform intricate surgeries with enhanced precision and control. With a market capitalization of approximately $205B, Intuitive Surgical continues to expand its offerings, including the Ion endoluminal system, which broadens its capabilities into diagnostic procedures. The company is headquartered in Sunnyvale, California, and employs around 15,638 people. With a strong commitment to improving patient outcomes, Intuitive Surgical is well-positioned in a growing healthcare market.
Novanta Inc. Overview
Novanta Inc. (NOVT) specializes in precision technology, offering a diverse range of photonics, vision, and motion control components that cater to medical and industrial applications. Founded in 1968 and headquartered in Bedford, Massachusetts, Novanta has a market capitalization of approximately $4.1B. The company’s innovative solutions, which include laser systems and medical-grade visualization technologies, support OEMs in delivering cutting-edge applications in medical imaging and surgical procedures. With a workforce of around 3,000, Novanta’s strategic focus on high-growth markets positions it as a key player in the technological landscape.
Key similarities and differences
Both Intuitive Surgical and Novanta operate in the healthcare sector, focusing on medical technology and devices. However, while Intuitive Surgical is primarily centered on surgical systems, Novanta offers a broader range of components for various applications, including industrial uses. This distinction highlights their differing business models and market approaches.
Income Statement Comparison
The following table compares the most recent income statements of Intuitive Surgical, Inc. (ISRG) and Novanta Inc. (NOVT), providing key financial metrics for each company.
| Metric | ISRG | NOVT |
|---|---|---|
| Market Cap | 205B | 4.09B |
| Revenue | 8.35B | 949M |
| EBITDA | 2.81B | 180M |
| EBIT | 2.35B | 124M |
| Net Income | 2.32B | 64M |
| EPS | 6.54 | 1.78 |
| Fiscal Year | 2024 | 2024 |
Interpretation of Income Statement
In the most recent fiscal year, Intuitive Surgical (ISRG) demonstrated a robust revenue growth of approximately 17% compared to the previous year, reflecting strong demand for minimally invasive surgical technologies. In contrast, Novanta Inc. (NOVT) saw a modest revenue increase of around 7.7%. ISRG’s net income also surged by 29%, highlighting improved operational efficiency and margin stability. While both companies exhibit solid fundamentals, the significant growth in ISRG’s margins and net income positions it favorably against NOVT, suggesting a more favorable investment opportunity in the healthcare sector.
Financial Ratios Comparison
The following table provides a comparison of key financial ratios for Intuitive Surgical, Inc. (ISRG) and Novanta Inc. (NOVT) based on the most recent available data.
| Metric | ISRG | NOVT |
|---|---|---|
| ROE | 14.13% | 8.59% |
| ROIC | 11.99% | 7.19% |
| P/E | 79.82 | 85.70 |
| P/B | 11.28 | 7.37 |
| Current Ratio | 4.07 | 2.58 |
| Quick Ratio | 3.22 | 1.72 |
| D/E | 0.01 | 0.63 |
| Debt-to-Assets | 0.01 | 0.34 |
| Interest Coverage | 0 | 3.51 |
| Asset Turnover | 0.44 | 0.68 |
| Fixed Asset Turnover | 1.75 | 6.08 |
| Payout Ratio | 0% | 0% |
| Dividend Yield | 0% | 0% |
Interpretation of Financial Ratios
Intuitive Surgical displays robust metrics with high return on equity (ROE) and a solid current ratio, indicating strong profitability and liquidity. Conversely, Novanta’s ratios suggest moderate performance, particularly with a higher debt-to-equity (D/E) ratio, which raises concerns about financial leverage. Both companies lack dividends, indicating a focus on reinvestment over shareholder returns. Overall, ISRG appears to be in a stronger financial position compared to NOVT, but investors must consider market conditions and future growth potential.
Dividend and Shareholder Returns
Both Intuitive Surgical (ISRG) and Novanta (NOVT) do not pay dividends, reflecting a strategic focus on reinvestment for growth. ISRG allocates resources towards innovation and capital expenditures, which has resulted in a robust operational margin of 28%. NOVT similarly prioritizes growth, maintaining a strong cash flow coverage for capital expenditures. While the absence of dividends may raise concerns for income-focused investors, both companies’ strategies appear aligned with sustainable long-term value creation for shareholders.
Strategic Positioning
Intuitive Surgical, Inc. (ISRG) commands a significant market share in the minimally invasive surgical systems space, primarily through its flagship da Vinci Surgical System. As a leader, it faces competitive pressure from emerging technologies and companies like Novanta Inc. (NOVT), which specializes in photonics and precision motion components for medical applications. While ISRG deals with challenges from technological advancements, NOVT’s diversified product offerings in vision and motion technologies pose additional market dynamics, underscoring the need for sustained innovation and strategic agility.
Stock Comparison
In this section, I will analyze the weekly stock price movements of Intuitive Surgical, Inc. (ISRG) and Novanta Inc. (NOVT) over the past year, highlighting key price dynamics and trading behavior that may influence investment decisions.
Trend Analysis
Intuitive Surgical, Inc. (ISRG) has experienced a remarkable price change of +77.82% over the past year, indicating a bullish trend. The stock reached a notable high of $595.55 and a low of $322.50. The trend is characterized by acceleration, with a standard deviation of 65.43, suggesting significant price fluctuations. In the recent period from September 14, 2025, to November 30, 2025, the price increased by +27.53%, further supporting the ongoing bullish momentum.
Novanta Inc. (NOVT), on the other hand, has faced a decline of -26.14% over the past year, marking a bearish trend. The stock’s highest price was $185.16, while it dipped to a low of $99.96. The trend is also accelerating, with a standard deviation of 24.41, indicating some volatility. Recently, from September 14, 2025, to November 30, 2025, NOVT experienced a slight price change of -0.76%, suggesting a neutral trend in the short term.
In summary, ISRG showcases strong upward momentum and increasing buyer volume, while NOVT is currently in a downward trend with seller dominance in the recent trading period.
Analyst Opinions
Recent analyst recommendations for Intuitive Surgical, Inc. (ISRG) and Novanta Inc. (NOVT) show a consistent rating of B-. Analysts suggest a cautious approach, with ISRG receiving a score of 3 in overall performance metrics, indicating strong return on assets but lower marks for price-to-earnings. Similarly, NOVT has a score of 2, reflecting moderate concerns. Notably, both companies exhibit stability, leading to a consensus hold for 2025. Analysts emphasize careful monitoring of market conditions before making significant investment decisions.
Stock Grades
I have analyzed the stock ratings for Intuitive Surgical, Inc. (ISRG) and Novanta Inc. (NOVT), and here are the findings from reliable grading companies.
Intuitive Surgical, Inc. Grades
| Grading Company | Action | New Grade | Date |
|---|---|---|---|
| UBS | maintain | Neutral | 2025-10-23 |
| Truist Securities | maintain | Buy | 2025-10-22 |
| RBC Capital | maintain | Outperform | 2025-10-22 |
| Piper Sandler | maintain | Overweight | 2025-10-22 |
| Wells Fargo | maintain | Overweight | 2025-10-22 |
| Raymond James | maintain | Outperform | 2025-10-22 |
| BTIG | maintain | Buy | 2025-10-22 |
| Truist Securities | maintain | Buy | 2025-10-15 |
| BTIG | maintain | Buy | 2025-10-13 |
| Evercore ISI Group | maintain | In Line | 2025-10-07 |
Novanta Inc. Grades
| Grading Company | Action | New Grade | Date |
|---|---|---|---|
| Baird | maintain | Neutral | 2025-08-11 |
| Baird | maintain | Neutral | 2025-03-03 |
| Baird | maintain | Neutral | 2024-11-06 |
| Baird | maintain | Neutral | 2024-08-07 |
| Baird | maintain | Neutral | 2023-05-11 |
| Baird | maintain | Neutral | 2023-05-10 |
| William Blair | upgrade | Outperform | 2022-05-11 |
| William Blair | upgrade | Outperform | 2022-05-10 |
| Berenberg | maintain | Hold | 2020-11-13 |
| Baird | maintain | Neutral | 2020-05-13 |
Overall, Intuitive Surgical has received a mix of ratings with a solid hold on its performance, while Novanta Inc. continues to maintain a neutral outlook from Baird, reflecting a consistent sentiment in its market positioning.
Target Prices
The following reliable target price data has been compiled from recognized analysts.
| Company | Target High | Target Low | Consensus |
|---|---|---|---|
| Intuitive Surgical, Inc. (ISRG) | 685 | 575 | 618 |
| Novanta Inc. (NOVT) | 160 | 160 | 160 |
Analysts expect Intuitive Surgical, Inc. to reach a consensus target price of 618, with a current stock price of 573.48, indicating potential upside. Novanta Inc. has a consensus target of 160, closely aligning with its current price of 113.66, suggesting a favorable outlook.
Strengths and Weaknesses
The following table outlines the strengths and weaknesses of Intuitive Surgical, Inc. (ISRG) and Novanta Inc. (NOVT) based on the most recent data.
| Criterion | Intuitive Surgical, Inc. (ISRG) | Novanta Inc. (NOVT) |
|---|---|---|
| Diversification | Low (focused on surgical systems) | Moderate (varied tech solutions) |
| Profitability | High (net profit margin 27.8%) | Low (net profit margin 6.8%) |
| Innovation | High (leading in robotic surgery) | Moderate (varied tech products) |
| Global presence | Strong (operates internationally) | Moderate (growing global footprint) |
| Market Share | High (dominant in surgical robots) | Moderate (growing share in photonics) |
| Debt level | Very low (debt-to-equity 0.0089) | Moderate (debt-to-equity 0.6316) |
Key takeaways indicate that while Intuitive Surgical excels in profitability and innovation, it has a narrow focus. In contrast, Novanta shows moderate strengths in diversification and market presence but has lower profitability and higher debt levels.
Risk Analysis
Below is a concise overview of the potential risks associated with Intuitive Surgical, Inc. (ISRG) and Novanta Inc. (NOVT).
| Metric | Intuitive Surgical, Inc. (ISRG) | Novanta Inc. (NOVT) |
|---|---|---|
| Market Risk | High (Beta: 1.692) | Moderate (Beta: 1.587) |
| Regulatory Risk | Moderate | High |
| Operational Risk | Moderate | Moderate |
| Environmental Risk | Low | Moderate |
| Geopolitical Risk | Moderate | High |
In evaluating the risks, market and regulatory risks stand out as the most significant. Both companies operate in industries sensitive to regulatory changes and market fluctuations, which can significantly impact their financial performance.
Which one to choose?
In analyzing Intuitive Surgical, Inc. (ISRG) and Novanta Inc. (NOVT), ISRG shows stronger fundamentals with a higher gross profit margin (67.5% vs. 44.4%) and net profit margin (27.8% vs. 6.8%). ISRG also exhibits robust financial health, evidenced by a current ratio of 4.1 and low debt levels, while NOVT’s debt-to-equity ratio is notably higher at 0.63. Analyst ratings for both companies are similar at B-, but ISRG’s price-to-earnings ratio (79.8) indicates a relatively high valuation, compared to NOVT’s (85.7). Over the past year, ISRG has experienced a bullish trend with a 77.8% price increase, while NOVT has faced a bearish trend with a 26.1% decline.
For growth-oriented investors, ISRG may be preferable due to its strong operational performance. Conversely, those prioritizing value may find NOVT appealing given its lower market capitalization. However, potential risks include competition and market dependence affecting both companies.
Disclaimer: This article is not financial advice. Each investor is responsible for their own investment decisions.
Go further
I encourage you to read the complete analyses of Intuitive Surgical, Inc. and Novanta Inc. to enhance your investment decisions:
