In today’s rapidly evolving industrial landscape, automation and precision solutions are critical for sustained growth and efficiency. In this analysis, I will compare Nordson Corporation (NDSN) and ATS Corporation (ATS), both key players in the Industrial – Machinery sector with overlapping markets and innovative strategies. While Nordson focuses on dispensing and control systems, ATS excels in comprehensive automation solutions. Join me as I explore which company presents the more compelling investment opportunity for your portfolio.
Table of contents
Company Overview
Nordson Corporation Overview
Nordson Corporation (NDSN) specializes in engineered systems for dispensing, applying, and controlling adhesives, coatings, and other fluids. With a market cap of approximately $13.37B, the company operates in two main segments: Industrial Precision Solutions and Advanced Technology Solutions. Founded in 1935 and headquartered in Westlake, Ohio, Nordson serves a diverse range of industries, providing automated systems for manufacturing and assembly processes. Its innovative approach positions Nordson as a leader in industrial machinery, focusing on precision and reliability in product delivery.
ATS Corporation Overview
ATS Corporation (ATS), with a market capitalization of around $2.51B, delivers comprehensive automation solutions worldwide. Established in 1978 and headquartered in Cambridge, Canada, ATS provides end-to-end automation services, from planning and design to commissioning and maintenance of manufacturing systems. The company focuses on sectors such as life sciences, consumer products, and transportation, emphasizing operational efficiency and sustainable production. ATS is known for its advanced engineering capabilities and digital solutions, enabling clients to optimize performance and reduce downtime.
Key similarities between Nordson and ATS include their focus on the industrial machinery sector and their commitment to providing automation solutions. However, while Nordson emphasizes fluid dispensing and control systems, ATS offers a broader range of automation services, including post-automation support and digital management systems.
Income Statement Comparison
The following table summarizes the latest income statements for Nordson Corporation (NDSN) and ATS Corporation (ATS), providing key financial metrics for comparison.
| Metric | NDSN | ATS |
|---|---|---|
| Revenue | 2.69B | 2.53B |
| EBITDA | 810.58M | 167.98M |
| EBIT | 674.41M | 15.31M |
| Net Income | 467.28M | -28.05M |
| EPS | 8.17 | -0.29 |
Interpretation of Income Statement
In the most recent fiscal year, Nordson Corporation displayed a solid revenue growth of approximately 2% from the previous year, along with a stable net income of 467.28M. The EBITDA margin remained healthy at 30.1%. In contrast, ATS Corporation faced challenges, with revenue declining by around 16% and reporting a net loss of 28.05M. This significant shift reflects operational difficulties, notably in cost management, resulting in a negative EPS. Overall, while Nordson shows resilience, ATS needs to address its operational inefficiencies to regain profitability.
Financial Ratios Comparison
In the following table, I present a comparative analysis of recent financial metrics for Nordson Corporation (NDSN) and ATS Corporation (ATS). This includes key ratios that can help investors assess the financial health and performance of these companies.
| Metric | NDSN | ATS |
|---|---|---|
| ROE | 15.94% | -1.64% |
| ROIC | 9.65% | 0.09% |
| P/E | 30.56 | -125.28 |
| P/B | 4.87 | 2.06 |
| Current Ratio | 2.41 | 1.69 |
| Quick Ratio | 1.51 | 1.41 |
| D/E | 0.79 | 0.99 |
| Debt-to-Assets | 0.39 | 0.37 |
| Interest Coverage | 7.58 | 0.09 |
| Asset Turnover | 0.45 | 0.55 |
| Fixed Asset Turnover | 4.21 | 5.66 |
| Payout Ratio | 34.55% | 0% |
| Dividend Yield | 1.13% | 0% |
Interpretation of Financial Ratios
Analyzing these ratios indicates that Nordson Corporation exhibits stronger profitability and efficiency, with a respectable ROE of 15.94% and a healthy current ratio of 2.41, suggesting good liquidity. In contrast, ATS shows concerning metrics, particularly a negative P/E ratio, indicating losses and poor earnings performance. ATS’s negative net profit margin raises potential concerns for investors regarding its operational viability.
Dividend and Shareholder Returns
Nordson Corporation (NDSN) has a dividend payout ratio of 34.5%, with a dividend yield of 1.13% and a consistent trend in dividend payments, indicating a commitment to shareholder returns. In contrast, ATS Corporation (ATS) does not pay dividends, reflecting a reinvestment strategy likely aimed at fostering growth during its current phase. While ATS has engaged in share buybacks, the lack of dividends may raise questions about long-term shareholder value creation. Overall, NDSN’s approach appears more sustainable for long-term value, while ATS’s strategy emphasizes growth potential.
Strategic Positioning
Nordson Corporation (NDSN) commands a significant market share in the industrial machinery sector, particularly in automated dispensing systems, with a market cap of 13.4B. Its diverse product range positions it well against competitors like ATS Corporation (ATS), which holds a smaller market cap of 2.5B. Both companies face competitive pressure from technological disruptions, such as advancements in automation and digital solutions, yet Nordson’s established reputation and extensive product offerings provide a robust defense against emerging threats.
Stock Comparison
In this section, I will analyze the stock price movements and trading dynamics of Nordson Corporation (NDSN) and ATS Corporation (ATS) over the past year, highlighting key trends and notable price fluctuations.
Trend Analysis
Nordson Corporation (NDSN) Over the past year, NDSN’s stock has experienced a price change of -4.7%, indicating a bearish trend. The stock reached a high of 278.89 and a low of 176.73, demonstrating notable volatility with a standard deviation of 23.83. The recent trend from September 14, 2025, to November 30, 2025, shows a positive price change of 6.65%, suggesting a potential short-term bullish correction despite the overall bearish trend.
ATS Corporation (ATS) In the last year, ATS has seen a significant price decline of -37.54%, confirming a bearish trend. The stock’s highest price was 43.82, while the lowest was 23.50, with a standard deviation of 4.44 indicating some volatility. The recent trend from September 14, 2025, to November 30, 2025, shows a price decrease of 6.09%, which aligns with a deceleration in the bearish trend.
Both companies display increasing volume trends, with NDSN showing buyer dominance at 64.94% in the recent period, while ATS reflects a neutral buyer-seller dynamic at 47.34%. As an investor, these insights are vital in assessing potential risks and opportunities in your portfolio.
Analyst Opinions
Recent analyst recommendations indicate a mixed outlook for the two companies analyzed. Nordson Corporation (NDSN) received a “B+” rating, with analysts praising its solid return on assets and equity, suggesting a “buy” consensus. Conversely, ATS Corporation (ATS) garnered a lower “C” rating, with analysts recommending a “hold” stance due to weaker financial metrics. Overall, the consensus for NDSN leans towards buy, while ATS remains neutral for 2025.
Stock Grades
In reviewing the most recent stock ratings for Nordson Corporation (NDSN) and ATS Corporation (ATS), it’s evident that analysts are maintaining their positions with cautious optimism or a neutral stance.
Nordson Corporation Grades
| Grading Company | Action | New Grade | Date |
|---|---|---|---|
| Oppenheimer | Maintain | Outperform | 2025-08-25 |
| Baird | Maintain | Neutral | 2025-08-22 |
| Keybanc | Maintain | Overweight | 2025-07-15 |
| Oppenheimer | Upgrade | Outperform | 2025-05-30 |
| Baird | Maintain | Neutral | 2025-05-30 |
| Keybanc | Maintain | Overweight | 2025-04-08 |
| Keybanc | Upgrade | Overweight | 2025-03-04 |
| Baird | Maintain | Neutral | 2025-02-21 |
| Loop Capital | Upgrade | Buy | 2025-01-22 |
| Seaport Global | Upgrade | Buy | 2024-12-17 |
ATS Corporation Grades
| Grading Company | Action | New Grade | Date |
|---|---|---|---|
| JP Morgan | Maintain | Neutral | 2024-08-13 |
| Goldman Sachs | Maintain | Sell | 2024-08-13 |
| JP Morgan | Maintain | Neutral | 2024-05-24 |
Overall, Nordson Corporation shows a trend of upgrades and maintained ratings suggesting a positive outlook, while ATS Corporation remains under a neutral to sell sentiment, indicating a more cautious approach from analysts.
Target Prices
I found reliable target price data for both companies under review.
| Company | Target High | Target Low | Consensus |
|---|---|---|---|
| Nordson Corporation | 285 | 240 | 263 |
| ATS Corporation | 34 | 34 | 34 |
Analysts expect Nordson Corporation’s stock to reach a consensus target of 263, suggesting a potential upside from the current price of 238. Meanwhile, ATS Corporation’s stock has a consensus target of 34, aligning directly with its current market price of 25.62.
Strengths and Weaknesses
The following table summarizes the strengths and weaknesses of Nordson Corporation (NDSN) and ATS Corporation (ATS) based on the most recent data available.
| Criterion | Nordson Corporation (NDSN) | ATS Corporation (ATS) |
|---|---|---|
| Diversification | Strong presence in multiple industrial sectors | Limited diversification, focused on automation solutions |
| Profitability | High net profit margin (17.4%) | Negative net profit margin (-1.1%) |
| Innovation | Investment in advanced technologies | Moderate innovation, but facing challenges in profitability |
| Global presence | Established global operations | Expanding, but primarily North American focus |
| Market Share | Leading in adhesive dispensing | Smaller market share in automation |
| Debt level | Moderate debt-to-equity ratio (0.79) | Higher debt-to-equity ratio (0.99) |
Key takeaways: Nordson exhibits strong profitability and diversification, positioning it favorably in the market. In contrast, ATS struggles with profitability and carries higher debt, suggesting potential risks for investors considering these companies for their portfolios.
Risk Analysis
The following table outlines the various risks associated with Nordson Corporation (NDSN) and ATS Corporation (ATS).
| Metric | Nordson Corporation | ATS Corporation |
|---|---|---|
| Market Risk | Moderate | High |
| Regulatory Risk | Low | Moderate |
| Operational Risk | Moderate | High |
| Environmental Risk | Low | Moderate |
| Geopolitical Risk | Moderate | High |
Both companies face a variety of risks, but ATS Corporation is particularly vulnerable to market and operational risks, given its recent financial performance. Nordson, with a B+ rating, shows better resilience compared to ATS’s C rating, highlighting the need for careful consideration when investing.
Which one to choose?
When comparing Nordson Corporation (NDSN) and ATS Corporation (ATS), the fundamentals reveal a significant disparity in their financial health and market performance. Nordson boasts a robust gross profit margin of 55.2%, an impressive return on equity (ROE) of 15.9%, and a solid rating of B+. In contrast, ATS has faced challenges with a negative net profit margin and a lower overall rating of C, indicating weaker financial performance. Furthermore, NDSN’s stock trend has shown resilience despite a recent bearish phase, while ATS has experienced a notable decline of over 37% in price.
For growth-focused investors, NDSN appears favorable due to its strong margins and solid performance metrics. Conversely, conservative investors seeking stability may find ATS less appealing, given its present risks related to operational profitability and market dependence.
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 Nordson Corporation and ATS Corporation to enhance your investment decisions:
