In the ever-evolving industrial machinery sector, two companies stand out: Nordson Corporation (NDSN) and ATS Corporation (ATS). Both firms specialize in automation solutions, yet they adopt distinct innovation strategies and market approaches. Nordson focuses on dispensing systems for a variety of fluids, while ATS emphasizes comprehensive automation solutions across multiple industries. As we delve into this comparison, I aim to help you identify which of these companies presents a more compelling investment opportunity for your portfolio.
Table of contents
Company Overview
Nordson Corporation Overview
Nordson Corporation (NDSN), headquartered in Westlake, Ohio, is a leading global provider of precision dispensing, application, and control systems for adhesives, coatings, and other fluids. Founded in 1935, the company operates through two primary segments: Industrial Precision Solutions and Advanced Technology Solutions. With a market cap of approximately $13.27B, Nordson’s products cater to various industries, including packaging, consumer goods, and medical devices. The company emphasizes innovation and precision, offering automated systems that enhance manufacturing efficiency and product quality. Its commitment to engineering excellence and customer satisfaction positions Nordson as a crucial player in the industrial machinery sector.
ATS Corporation Overview
ATS Corporation (ATS), based in Cambridge, Canada, specializes in automation solutions that streamline manufacturing processes across diverse sectors, including life sciences, food and beverage, and electronics. Established in 1978, ATS provides comprehensive services, from planning and designing automated systems to post-automation support and contract manufacturing. With a market capitalization of around $2.70B, the company integrates advanced digital solutions to improve operational efficiency and reduce downtime for its clients. ATS’s focus on innovation and service excellence enables it to maintain a competitive position in the industrial automation landscape.
Key similarities and differences
Both Nordson and ATS operate in the industrial machinery sector and emphasize automation and precision in their offerings. However, while Nordson focuses primarily on dispensing and application systems, ATS provides a broader range of automation solutions, including design and manufacturing services. This distinction highlights Nordson’s niche in fluid control compared to ATS’s comprehensive automation capabilities.
Income Statement Comparison
The following table compares the latest income statements for Nordson Corporation (NDSN) and ATS Corporation (ATS), providing insights into their financial performance.
| Metric | Nordson Corporation (NDSN) | ATS Corporation (ATS) |
|---|---|---|
| Market Cap | 13.27B | 2.70B |
| Revenue | 2.79B | 2.53B |
| EBITDA | 711.73M | 167.98M |
| EBIT | 711.73M | 15.31M |
| Net Income | 484.47M | -28.05M |
| EPS | 8.56 | -0.29 |
| Fiscal Year | 2025 | 2025 |
Interpretation of Income Statement
In 2025, Nordson Corporation demonstrated robust revenue growth, increasing from 2.68B in 2024 to 2.79B, while ATS Corporation saw a decline from 3.03B to 2.53B, highlighting significant operational challenges. Nordson’s net income rose to 484.47M, showcasing strong profitability and margin stability. In contrast, ATS reported a net loss of 28.05M, indicating struggles in maintaining profitability amidst increased operating costs. Overall, Nordson’s performance reflects effective management and growth, while ATS needs to address its operational inefficiencies to regain profitability.
Financial Ratios Comparison
Below is a comparative table showing the most recent revenue and financial ratios for Nordson Corporation (NDSN) and ATS Corporation (ATS).
| Metric | NDSN | ATS |
|---|---|---|
| ROE | 15.94% | -1.64% |
| ROIC | 9.65% | 0.09% |
| P/E | 27.10 | -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 | 38.67% | 36.79% |
| Interest Coverage | 7.58 | 0.09 |
| Asset Turnover | 0.45 | 0.55 |
| Fixed Asset Turnover | 4.21 | 5.66 |
| Payout ratio | 36.96% | 0% |
| Dividend yield | 1.36% | 0% |
Interpretation of Financial Ratios
In analyzing the financial ratios, Nordson Corporation demonstrates stronger performance in most areas compared to ATS Corporation, particularly in ROE, ROIC, and interest coverage, indicating better profitability and efficiency. ATS, on the other hand, shows concerning negative metrics such as P/E and net profit margin, signifying potential financial distress. The high debt-to-equity ratio also raises red flags for ATS, suggesting increased financial leverage risks that investors should consider.
Dividend and Shareholder Returns
Nordson Corporation (NDSN) distributes dividends with a yield of 1.36% and a payout ratio of approximately 37%. This indicates a sustainable dividend policy, supported by consistent free cash flow, although caution is warranted regarding potential risks of excessive repurchases impacting future distributions. Conversely, ATS Corporation (ATS) does not pay dividends, likely due to its ongoing reinvestment strategy aimed at growth, which may align with long-term shareholder value creation. Overall, Nordson’s dividends appear supportive of sustainable value, while ATS’s strategy necessitates continued monitoring.
Strategic Positioning
In the industrial machinery sector, Nordson Corporation (NDSN) holds a substantial market share, bolstered by its advanced technology in dispensing systems. With a market cap of 13.3B, it faces moderate competitive pressure from ATS Corporation (ATS), which, with a 2.7B market cap, offers automation solutions across various industries. Both companies must navigate technological disruptions, particularly as automation technologies evolve rapidly, influencing their product offerings and market positioning.
Stock Comparison
In this section, I will analyze the weekly stock price movements of Nordson Corporation (NDSN) and ATS Corporation (ATS) over the past year, highlighting significant price dynamics and trading behavior.
Trend Analysis
For Nordson Corporation (NDSN), the overall price change over the past year is -6.75%, indicating a bearish trend. The stock has seen notable volatility with a standard deviation of 23.71. The highest price reached during this period was 278.89, while the lowest was 176.73. The recent trend, however, shows a price increase of 4.11% from September 28, 2025, to December 14, 2025, suggesting a slight recovery, but the overall bearish sentiment remains due to the longer-term decline.
For ATS Corporation (ATS), the stock has experienced a significant overall price decrease of -36.0%, marking a bearish trend as well. The standard deviation of 4.14 indicates relatively lower volatility compared to NDSN. The highest price was recorded at 43.82, with a low of 23.5. In the recent trend from September 28, 2025, to December 14, 2025, ATS has shown a price increase of 7.19%, which, while positive, does not offset the substantial decline observed over the year.
In summary, both companies are currently in a bearish trend with recent upticks that may indicate short-term recoveries but do not alter the long-term bearish outlook.
Analyst Opinions
Recent analyst recommendations for Nordson Corporation (NDSN) indicate a “Buy” rating with a B+ score, reflecting strong performance in return on assets and equity, according to analysts. On the other hand, ATS Corporation (ATS) has received a “Hold” rating with a C score, mainly due to weaker metrics across key financial indicators. Analysts like those at major investment firms emphasize that while NDSN shows solid fundamentals, ATS may face challenges ahead. The consensus for the current year leans towards a “Buy” for NDSN and “Hold” for ATS.
Stock Grades
Here are the latest stock ratings for Nordson Corporation (NDSN) and ATS Corporation (ATS) based on reliable grading data.
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 |
In summary, Nordson Corporation has received several upgrades to “Outperform” and “Buy” ratings, indicating positive sentiment and performance expectations. On the other hand, ATS Corporation continues to see a mix of neutral and sell ratings, suggesting a more cautious outlook among analysts.
Target Prices
The current consensus target prices for Nordson Corporation (NDSN) and ATS Corporation (ATS) suggest varying expectations among analysts.
| Company | Target High | Target Low | Consensus |
|---|---|---|---|
| Nordson Corporation (NDSN) | 285 | 240 | 263 |
| ATS Corporation (ATS) | 34 | 34 | 34 |
Analysts expect Nordson Corporation’s stock to rise significantly from its current price of 236.19 USD, while ATS Corporation’s target price matches its current trading level of 27.59 USD. This indicates a strong bullish sentiment for NDSN and a stable outlook for ATS.
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.
| Criterion | Nordson Corporation | ATS Corporation |
|---|---|---|
| Diversification | High | Moderate |
| Profitability | Strong (17.35% net margin) | Weak (Negative net margin) |
| Innovation | High | Moderate |
| Global presence | Strong | Moderate |
| Market Share | Moderate | Low |
| Debt level | Low (0.38 debt-to-assets) | High (0.37 debt-to-assets) |
Key takeaways indicate that while Nordson Corporation demonstrates strong profitability and low debt levels, ATS Corporation struggles with profitability and carries a higher debt burden. Understanding these factors can guide investment decisions.
Risk Analysis
The following table outlines key 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 | Low | High |
Both companies face significant market and operational risks, particularly ATS, which has a high exposure due to its reliance on automation solutions across various sectors. Recent economic shifts and regulatory changes may further impact their performance.
Which one to choose?
When comparing Nordson Corporation (NDSN) and ATS Corporation (ATS), NDSN appears to be the stronger option for investors. NDSN boasts a market cap of approximately 13.1B and a solid net profit margin of 17.35%, alongside a favorable B+ rating from analysts. Its price-to-earnings ratio stands at 27.1, indicating reasonable growth potential. Conversely, ATS, with a market cap of roughly 3.5B, suffers from negative net income and a lower C rating, reflecting its ongoing struggles. The stock trend for both companies is bearish, but NDSN’s recent performance shows signs of recovery.
Investors focused on growth may prefer NDSN, while those prioritizing stability might want to consider ATS, albeit with caution due to its financial challenges. Specific risks to consider include competition and market dependence, particularly in their respective sectors.
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:
