In the dynamic realm of industrial machinery, two companies stand out: Nordson Corporation (NDSN) and Symbotic Inc. (SYM). Both are key players in the automation sector, yet they adopt distinct approaches to innovation and market engagement. Nordson excels in fluid dispensing systems, while Symbotic focuses on warehouse automation technology. As we delve into their strategies, performance, and market positioning, I aim to uncover which of these companies presents the most compelling opportunity for investors like you.
Table of contents
Company Overview
Nordson Corporation Overview
Nordson Corporation (NDSN), established in 1935 and headquartered in Westlake, Ohio, is a leading provider of precision technology solutions for dispensing, applying, and controlling adhesives, coatings, and other fluids. The company operates through two main segments: Industrial Precision Solutions (IPS) and Advanced Technology Solutions (ATS). IPS focuses on automated systems for various industries, including packaging and product assembly, while ATS specializes in advanced dispensing systems for medical and semiconductor applications. With a market capitalization of approximately $13.27B and a commitment to innovation, Nordson is well-positioned in the industrial machinery sector.
Symbotic Inc. Overview
Symbotic Inc. (SYM), founded in 2021 and based in Wilmington, Massachusetts, is an automation technology company that enhances supply chain efficiency for retailers and wholesalers. The company’s flagship product, The Symbotic System, is a comprehensive warehouse automation solution designed to lower operational costs and optimize inventory management. With a significant market capitalization of around $36.40B, Symbotic stands out in the industrial machinery space due to its focus on robotics and advanced technology solutions, catering to the growing demand for automation in logistics.
Key similarities and differences
Both Nordson Corporation and Symbotic Inc. operate within the industrial machinery sector, yet they differ significantly in their business models. Nordson focuses on a diverse range of fluid dispensing technologies across various industries, while Symbotic specializes exclusively in automation solutions for the warehousing and logistics sector. Additionally, Nordson has a longer history and a broader product offering compared to the relatively new and niche-focused Symbotic.
Income Statement Comparison
The following table presents a comparative analysis of the income statements for Nordson Corporation (NDSN) and Symbotic Inc. (SYM) for their most recent fiscal years.
| Metric | NDSN | SYM |
|---|---|---|
| Market Cap | 13.27B | 36.40B |
| Revenue | 2.79B | 2.25B |
| EBITDA | 711M | -48M |
| EBIT | 561M | -92M |
| Net Income | 484M | -17M |
| EPS | 8.56 | -0.16 |
| Fiscal Year | 2025 | 2025 |
Interpretation of Income Statement
In the most recent fiscal year, Nordson Corporation demonstrated a solid revenue growth of 3% from the prior year, alongside a net income increase of approximately 4%. This reflects stable operational efficiency with a healthy EBITDA margin. Conversely, Symbotic Inc. faced challenges, reporting a significant net loss and negative EBITDA, indicating operational inefficiencies. The company’s revenue increased sharply but was overshadowed by high costs, leading to negative margins. Investors should closely monitor Symbotic’s strategy to regain profitability, while Nordson’s performance appears stable and positive in the current market environment.
Financial Ratios Comparison
Here is a comparative table showing the most recent revenue and financial ratios for Nordson Corporation (NDSN) and Symbotic Inc. (SYM).
| Metric | NDSN | SYM |
|---|---|---|
| ROE | 15.93% | -16.67% |
| ROIC | 9.65% | -17.47% |
| P/E | 27.10 | -70.32 |
| P/B | 5.12 | 11.73 |
| Current Ratio | 2.41 | 1.09 |
| Quick Ratio | 1.51 | 0.99 |
| D/E | 0.79 | 0.00 |
| Debt-to-Assets | 38.67% | 0.00% |
| Interest Coverage | 7.58 | 0.00 |
| Asset Turnover | 0.45 | 1.13 |
| Fixed Asset Turnover | 4.21 | 19.10 |
| Payout ratio | 36.96% | 0.00% |
| Dividend yield | 1.36% | 0.00% |
Interpretation of Financial Ratios
Nordson Corporation shows strong financial health with a solid return on equity (ROE) of 15.93% and a current ratio of 2.41, indicating good liquidity. However, Symbotic Inc. presents concerning figures, with negative returns and a high price-to-earnings ratio, suggesting potential struggles to generate profit. Investors should cautiously consider these aspects when evaluating their portfolios.
Dividend and Shareholder Returns
Nordson Corporation (NDSN) pays dividends with a current yield of 1.36% and a payout ratio of approximately 37%. The dividend per share has shown consistent growth, supported by robust free cash flow. However, risks include potential unsustainability if profit margins were to decline significantly. In contrast, Symbotic Inc. (SYM) does not pay dividends, reflecting its high-growth strategy and reinvestment in operations. The absence of dividends might align with long-term value creation, particularly if future profitability is realized. Overall, NDSN’s dividend practices appear to support sustainable shareholder value, while SYM’s strategy hinges on future growth execution.
Strategic Positioning
Nordson Corporation (NDSN) operates in a competitive industrial machinery market, holding a significant share through its diverse product offerings in adhesives and coatings. With a market cap of $13.27B, NDSN faces competitive pressure from agile automation companies like Symbotic Inc. (SYM), which boasts a market cap of $36.40B and focuses on warehouse automation. Both companies are navigating technological disruptions, particularly as automation becomes increasingly critical for operational efficiency in the supply chain.
Stock Comparison
In this section, I will analyze the stock price movements of Nordson Corporation (NDSN) and Symbotic Inc. (SYM) over the past year, highlighting key price dynamics and trading patterns.
Trend Analysis
Nordson Corporation (NDSN) Over the past year, NDSN has experienced a price change of -6.75%, indicating a bearish trend. The stock’s highest price reached 278.89, while the lowest was 176.73. The trend exhibits acceleration, with a standard deviation of 23.71 suggesting notable volatility. More recently, between September 28, 2025, and December 14, 2025, NDSN posted a positive price change of 4.11%, with a trend slope of 0.71.
Symbotic Inc. (SYM) In contrast, SYM has shown a robust price change of 36.62% over the past year, reflecting a bullish trend. The stock hit a high of 83.77 and a low of 17.5. Similar to NDSN, SYM’s trend also shows acceleration, supported by a standard deviation of 14.34. In the recent period from September 28, 2025, to December 14, 2025, SYM recorded a strong price change of 15.55%, with a trend slope of 0.32.
In summary, while NDSN currently faces a bearish trend with recent fluctuations indicating some recovery, SYM is on a strong upward trajectory, characterized by significant gains and consistent volume trends.
Analyst Opinions
Recent analyst recommendations for Nordson Corporation (NDSN) indicate a consensus rating of “Buy” with an overall score of 3. Analysts appreciate its strong performance in return on assets and equity, highlighting a favorable discounted cash flow score. In contrast, Symbotic Inc. (SYM) holds a “Sell” rating with an overall score of 2, primarily due to its weak performance across key metrics including return on equity and debt-to-equity ratio. Analysts emphasize caution for SYM, citing underlying financial concerns.
Stock Grades
In the current market landscape, it’s crucial to evaluate stock grades provided by established grading companies to gauge their potential. Here are the latest grades for Nordson Corporation and Symbotic Inc.
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 |
Symbotic Inc. Grades
| Grading Company | Action | New Grade | Date |
|---|---|---|---|
| Goldman Sachs | downgrade | Sell | 2025-12-02 |
| Barclays | maintain | Underweight | 2025-11-26 |
| Baird | maintain | Neutral | 2025-11-26 |
| Craig-Hallum | upgrade | Buy | 2025-11-25 |
| Northland Capital Markets | maintain | Outperform | 2025-11-25 |
| Needham | maintain | Buy | 2025-11-25 |
| Cantor Fitzgerald | maintain | Overweight | 2025-11-25 |
| DA Davidson | maintain | Neutral | 2025-11-25 |
| Citigroup | maintain | Buy | 2025-11-25 |
| UBS | downgrade | Sell | 2025-09-23 |
Overall, Nordson Corporation shows a stable trend with several grades maintaining or improving, indicating a generally positive outlook. In contrast, Symbotic Inc. has received recent downgrades, suggesting a cautious approach may be prudent for potential investors.
Target Prices
The latest target price consensus indicates positive expectations for both Nordson Corporation (NDSN) and Symbotic Inc. (SYM).
| Company | Target High | Target Low | Consensus |
|---|---|---|---|
| Nordson Corporation | 285 | 240 | 263 |
| Symbotic Inc. | 83 | 41 | 65.11 |
For Nordson Corporation, the consensus target price of 263 represents an upside potential compared to its current price of 236.19. Meanwhile, Symbotic Inc. has a target consensus of 65.11, which also indicates a favorable outlook against its current price of 60.27.
Strengths and Weaknesses
The following table summarizes the strengths and weaknesses of Nordson Corporation (NDSN) and Symbotic Inc. (SYM) based on recent financial data and operational metrics.
| Criterion | Nordson Corporation (NDSN) | Symbotic Inc. (SYM) |
|---|---|---|
| Diversification | Strong product diversification across industrial solutions | Limited to automation technology for specific sectors |
| Profitability | High net profit margin of 17.35% | Negative profit margins indicating financial challenges |
| Innovation | Investment in advanced technology solutions | Focus on robotics, but limited product range |
| Global presence | Established global operations | Primarily US-focused |
| Market Share | Significant position in industrial machinery | Emerging player in warehouse automation |
| Debt level | Low debt with a ratio of 0.36 | No debt, but financial leverage issues evident |
Key takeaways from the analysis indicate that Nordson Corporation demonstrates stronger profitability and diversification compared to Symbotic Inc., which faces challenges in profitability and market presence. Investors should weigh these factors when considering potential investments.
Risk Analysis
The table below outlines key risks associated with two companies, Nordson Corporation (NDSN) and Symbotic Inc. (SYM), in the context of their respective operations.
| Metric | Nordson Corporation (NDSN) | Symbotic Inc. (SYM) |
|---|---|---|
| Market Risk | Moderate | High |
| Regulatory Risk | Low | Moderate |
| Operational Risk | Moderate | High |
| Environmental Risk | Low | Moderate |
| Geopolitical Risk | Low | High |
In my analysis, the most significant risks for Nordson are moderate market and operational risks, primarily due to industry competition and supply chain dependencies. Conversely, Symbotic faces high market and operational risks, exacerbated by its reliance on technology adoption and regulatory compliance in a rapidly evolving industry landscape.
Which one to choose?
When comparing Nordson Corporation (NDSN) and Symbotic Inc. (SYM), I find that NDSN presents a more favorable outlook for investors. NDSN showcases a solid gross profit margin of 55.2% and a net profit margin of 17.4%, reflecting operational efficiency. Its B+ rating indicates strong fundamentals, supported by a P/E ratio of 27.1, suggesting reasonable valuation. In contrast, SYM struggles with a negative net profit margin and a C rating, indicating operational challenges and less favorable financial health.
For investors seeking stability and consistent returns, NDSN appears to be the better choice. On the other hand, those looking for speculative growth opportunities might consider SYM, keeping in mind its inherent risks related to competition and financial instability.
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 Symbotic Inc. to enhance your investment decisions:
