In today’s rapidly evolving technological landscape, Novanta Inc. (NOVT) and Mesa Laboratories, Inc. (MLAB) stand out as key players in the Hardware, Equipment & Parts industry. Both companies share a commitment to innovation, yet they specialize in distinct areas: Novanta focuses on photonics and motion control, while Mesa excels in life sciences tools and quality control solutions. As we delve into this analysis, I aim to uncover which of these companies presents the most compelling investment opportunity for you.
Table of contents
Company Overview
Novanta Inc. Overview
Novanta Inc. specializes in designing, manufacturing, and marketing photonics, vision, and precision motion components tailored for original equipment manufacturers across medical and industrial sectors. Founded in 1968 and headquartered in Bedford, Massachusetts, the company operates through three primary segments: Photonics, Vision, and Precision Motion. Their innovative solutions cater to a diverse range of applications, including medical imaging, DNA sequencing, and industrial processing. With a strong commitment to advancing technology, Novanta serves customers globally, leveraging a robust sales network to deliver high-quality products under well-recognized brands. As of the latest data, Novanta holds a market cap of approximately 4.09B, reflecting its significant position within the technology sector.
Mesa Laboratories, Inc. Overview
Mesa Laboratories, Inc., established in 1982 and based in Lakewood, Colorado, develops and sells life sciences tools and quality control products. Their offerings span across sterilization and disinfection control, biopharmaceutical development, calibration solutions, and clinical genomics. Mesa’s products are crucial for various industries, including healthcare and pharmaceuticals, where they ensure the efficacy of sterilization processes and the reliability of genetic testing. With a market capitalization of around 442.89M, Mesa has positioned itself as a vital player in the life sciences technology sector, focusing on quality and precision in its solutions.
Key similarities and differences
Both Novanta and Mesa Laboratories operate within the technology sector, specifically focusing on hardware, equipment, and parts. However, while Novanta emphasizes photonics and precision motion solutions, Mesa Laboratories specializes in life sciences tools and quality control products. This distinction highlights Novanta’s broader industrial application versus Mesa’s specific focus on healthcare and biopharmaceuticals.
Income Statement Comparison
The following table presents a comparative analysis of the most recent income statements for Novanta Inc. and Mesa Laboratories, Inc., highlighting key financial metrics.
| Metric | Novanta Inc. (NOVT) | Mesa Laboratories, Inc. (MLAB) |
|---|---|---|
| Market Cap | 4.09B | 442.89M |
| Revenue | 949.25M | 240.98M |
| EBITDA | 179.86M | 42.35M |
| EBIT | 124.29M | 17.82M |
| Net Income | 64.09M | -1.97M |
| EPS | 1.78 | -0.36 |
| Fiscal Year | 2024 | 2025 |
Interpretation of Income Statement
In the most recent fiscal year, Novanta Inc. demonstrated strong revenue growth, reaching 949.25M, up from 881.66M the previous year. This resulted in a net income of 64.09M, showcasing a healthy profitability despite slight margin fluctuations. In contrast, Mesa Laboratories faced a challenging fiscal year with a revenue of 240.98M, but reported a net loss of 1.97M. The decline in profitability is concerning as it indicates potential operational inefficiencies or market challenges. Overall, Novanta appears to be on a growth trajectory while Mesa’s stability remains uncertain, highlighting the importance of careful risk assessment in investment decisions.
Financial Ratios Comparison
The following table provides a comparative overview of key financial metrics for Novanta Inc. (NOVT) and Mesa Laboratories, Inc. (MLAB), focusing on their most recent revenue and financial ratios.
| Metric | Novanta Inc. (NOVT) | Mesa Laboratories, Inc. (MLAB) |
|---|---|---|
| ROE | 8.59% | -1.24% |
| ROIC | 7.19% | -1.45% |
| P/E | 85.70 | -326.35 |
| P/B | 7.37 | 4.03 |
| Current Ratio | 2.58 | 0.63 |
| Quick Ratio | 1.72 | 0.47 |
| D/E | 0.63 | 1.14 |
| Debt-to-Assets | 33.92% | 41.88% |
| Interest Coverage | 3.51 | 1.38 |
| Asset Turnover | 0.68 | 0.56 |
| Fixed Asset Turnover | 6.08 | 7.45 |
| Payout Ratio | 0% | -1.76% |
| Dividend Yield | 0% | 0.54% |
Interpretation of Financial Ratios
Novanta Inc. shows strong performance with a solid ROE of 8.59% and a robust current ratio of 2.58, indicating good liquidity. In contrast, Mesa Laboratories struggles with negative profitability (ROE at -1.24%) and a low current ratio of 0.63, reflecting potential liquidity issues. The high P/E for NOVT suggests growth expectations, while MLAB’s negative P/E raises concerns about its earnings viability. Overall, NOVT appears to be the stronger investment choice based on these metrics.
Dividend and Shareholder Returns
Novanta Inc. (NOVT) does not pay dividends, reflecting a strategy focused on reinvesting in growth opportunities. The company has maintained a zero dividend payout ratio, opting instead for share buybacks to enhance shareholder value. Mesa Laboratories, Inc. (MLAB) has a modest dividend yield of 0.54% and a payout ratio of approximately 3.66, alongside share repurchase initiatives. While both companies prioritize value creation, NOVT’s reinvestment approach may offer greater long-term growth potential, whereas MLAB’s dividend may appeal to income-focused investors.
Strategic Positioning
Novanta Inc. (NOVT) holds a significant market share in photonics and precision motion components, showcasing a robust competitive edge through innovative technology and diverse product offerings. Mesa Laboratories, Inc. (MLAB), while smaller in market cap, specializes in quality control and life sciences tools, facing increasing competitive pressure from emerging technologies in the health sector. Both companies navigate a landscape marked by rapid technological disruption, necessitating continuous adaptation and strategic investment to maintain their market positions.
Stock Comparison
In reviewing the stock performance of Novanta Inc. (NOVT) and Mesa Laboratories, Inc. (MLAB), we observe significant price movements and trading dynamics that have unfolded over the past year, highlighting the contrasting trends and market behaviors of these companies.
Trend Analysis
For Novanta Inc. (NOVT), the stock has experienced a notable price change of -26.14% over the past year, indicating a bearish trend. This decline has been marked by a standard deviation of 24.41, reflecting considerable volatility. The highest price reached was 185.16, while the lowest was 99.96. The acceleration status suggests that the downward trend is gaining momentum. In the recent analysis from September 14, 2025, to November 30, 2025, the price change was minor at -0.76%, further reinforcing the bearish sentiment.
In contrast, Mesa Laboratories, Inc. (MLAB) has also faced a challenging year, with a price change of -18.93%, categorizing it as bearish as well. The stock’s volatility is indicated by a standard deviation of 22.44. The highest price for MLAB was 147.79, with a lowest point of 61.66. Similar to NOVT, the trend shows acceleration. However, in the recent period from September 14, 2025, to November 30, 2025, MLAB saw a remarkable recovery with a price change of +30.07%, indicating a positive shift in momentum.
In summary, while both stocks are currently in bearish trends overall, MLAB’s recent performance indicates a potential turnaround, contrasting with NOVT’s consistent downward trajectory.
Analyst Opinions
Recent analyst recommendations indicate a mixed outlook for Novanta Inc. (NOVT) and Mesa Laboratories, Inc. (MLAB). Analysts rate NOVT with a B-, suggesting a buy due to strong scores in return on assets and discounted cash flow. However, MLAB received a C+, indicating a hold position, primarily due to weaker metrics in return on equity and assets. Overall, the consensus leans towards a buy for NOVT while MLAB remains more neutral. Analysts stress careful monitoring of financial health in both cases.
Stock Grades
In this section, I will provide you with the latest stock grades for Novanta Inc. and Mesa Laboratories, Inc., based on reliable grading data.
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 |
Mesa Laboratories, Inc. Grades
| Grading Company | Action | New Grade | Date |
|---|---|---|---|
| Wells Fargo | Upgrade | Equal Weight | 2025-08-08 |
| Wells Fargo | Maintain | Underweight | 2025-05-30 |
| Evercore ISI Group | Maintain | Outperform | 2024-10-01 |
| Evercore ISI Group | Maintain | Outperform | 2024-08-06 |
| Evercore ISI Group | Maintain | Outperform | 2024-07-02 |
| Evercore ISI Group | Maintain | Outperform | 2024-04-04 |
| Evercore ISI Group | Upgrade | Outperform | 2024-01-04 |
| Evercore ISI Group | Downgrade | In Line | 2021-01-04 |
| Evercore ISI Group | Downgrade | In Line | 2021-01-03 |
| Keybanc | Maintain | Equal Weight | 2020-11-10 |
Overall, Novanta Inc. has maintained a consistent neutral rating from Baird, indicating stability but not significant growth potential. On the other hand, Mesa Laboratories, Inc. has shown an upgrade to “Equal Weight” from “Underweight,” suggesting an improvement in investor sentiment and outlook.
Target Prices
The current consensus among analysts indicates a stable outlook for both Novanta Inc. and Mesa Laboratories, Inc.
| Company | Target High | Target Low | Consensus |
|---|---|---|---|
| Novanta Inc. (NOVT) | 160 | 160 | 160 |
| Mesa Laboratories, Inc. (MLAB) | 120 | 120 | 120 |
For Novanta Inc. (NOVT), the target consensus aligns perfectly with its current price of 113.66, suggesting a potential upside. Mesa Laboratories, Inc. (MLAB) also reflects a similar situation, with a current price of 80.20 against a target consensus of 120, indicating significant upside potential as well.
Strengths and Weaknesses
The following table outlines the strengths and weaknesses of Novanta Inc. (NOVT) and Mesa Laboratories, Inc. (MLAB) based on the most recent data.
| Criterion | Novanta Inc. (NOVT) | Mesa Laboratories, Inc. (MLAB) |
|---|---|---|
| Diversification | High | Moderate |
| Profitability | Positive margins | Negative margins |
| Innovation | Strong | Moderate |
| Global presence | Extensive | Limited |
| Market Share | Significant | Niche |
| Debt level | Moderate | High |
Key takeaways: Novanta Inc. exhibits strong profitability and a robust global presence, making it an attractive option. In contrast, Mesa Laboratories faces profitability challenges and high debt levels, presenting higher risk for investors.
Risk Analysis
In this section, I will outline the key risks associated with Novanta Inc. (NOVT) and Mesa Laboratories, Inc. (MLAB) to assist investors in making informed decisions.
| Metric | Novanta Inc. (NOVT) | Mesa Laboratories, Inc. (MLAB) |
|---|---|---|
| Market Risk | Moderate | High |
| Regulatory Risk | Moderate | High |
| Operational Risk | Low | High |
| Environmental Risk | Low | Moderate |
| Geopolitical Risk | Moderate | Moderate |
Both companies face a variety of risks, with market and regulatory risks being particularly notable. For NOVT, recent increases in interest rates could lead to decreased demand in the capital-intensive sectors they operate in. Meanwhile, MLAB is grappling with operational challenges as they reported a negative net profit margin of -0.008 in their latest fiscal year, indicating significant financial strain.
Which one to choose?
In comparing Novanta Inc. (NOVT) and Mesa Laboratories, Inc. (MLAB), I note that NOVT shows stronger fundamentals overall, with a gross profit margin of 44.4% and a net profit margin of 6.8% for FY 2024, compared to MLAB’s gross profit margin of 62.6% but a negative net profit margin of -0.8%. While NOVT has a better return on equity (8.6%) and a more favorable rating (B-) versus MLAB’s C+, MLAB has a lower valuation with a price-to-earnings ratio of -326.3, reflecting its current struggles.
For growth-oriented investors, MLAB’s potential turnaround might be appealing due to its recent price increase of 30.1%. However, those seeking stability may prefer NOVT, which appears more resilient despite its bearish stock trend.
Both companies face risks associated with competition and market dependence, making careful consideration essential.
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 Novanta Inc. and Mesa Laboratories, Inc. to enhance your investment decisions:
