Head to Head Review: Nordson (NASDAQ:NDSN) and Symbotic (NASDAQ:SYM)

Nordson (NASDAQ:NDSNGet Rating) and Symbotic (NASDAQ:SYMGet Rating) are both industrial products companies, but which is the better investment? We will contrast the two companies based on the strength of their earnings, valuation, profitability, institutional ownership, analyst recommendations, dividends and risk.

Analyst Recommendations

This is a summary of current ratings for Nordson and Symbotic, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Nordson 0 2 2 0 2.50
Symbotic 0 1 10 0 2.91

Nordson currently has a consensus target price of $258.80, indicating a potential upside of 7.19%. Symbotic has a consensus target price of $18.42, indicating a potential upside of 43.32%. Given Symbotic’s stronger consensus rating and higher possible upside, analysts plainly believe Symbotic is more favorable than Nordson.

Profitability

This table compares Nordson and Symbotic’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Nordson 19.81% 24.69% 14.39%
Symbotic -10.08% -289.05% -17.24%

Volatility and Risk

Nordson has a beta of 0.9, meaning that its stock price is 10% less volatile than the S&P 500. Comparatively, Symbotic has a beta of 0.96, meaning that its stock price is 4% less volatile than the S&P 500.

Insider & Institutional Ownership

70.4% of Nordson shares are owned by institutional investors. Comparatively, 57.8% of Symbotic shares are owned by institutional investors. 0.8% of Nordson shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Earnings and Valuation

This table compares Nordson and Symbotic’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Nordson $2.59 billion 5.33 $513.10 million $8.82 27.38
Symbotic $593.31 million 12.00 -$79.00 million ($10.62) -1.21

Nordson has higher revenue and earnings than Symbotic. Symbotic is trading at a lower price-to-earnings ratio than Nordson, indicating that it is currently the more affordable of the two stocks.

Summary

Nordson beats Symbotic on 9 of the 14 factors compared between the two stocks.

About Nordson

(Get Rating)

Nordson Corporation engineers, manufactures, and markets products and systems to dispense, apply, and control adhesives, coatings, polymers, sealants, biomaterials, and other fluids worldwide. It operates through three segments: Industrial Precision Solutions (IPS); Medical and Fluid Solutions; and Advanced Technology Solutions (ATS). The IPS segment provides dispensing, coating, and laminating systems for adhesives, lotions, liquids, and fibers to disposable products and roll goods; automated adhesive dispensing systems used in packaged goods industries; components and systems used in the thermoplastic and biopolymer melt stream; and product assembly systems for use in paper and paperboard converting applications, and manufacturing roll goods, as well as for the assembly of plastic, metal, and wood products. It also offers automated and manual dispensing products and systems for cold materials, container coating, liquid finishing, and powder coating, as well as ultraviolet equipment used primarily in curing and drying operations. The Medical and Fluid Solutions segment offers medical devices, including cannulas, catheters, and medical balloons; single-use plastic components; precision manual and semi-automated dispensers; minimally invasive interventional delivery devices; and plastic molded syringes, cartridges, tips, and fluid connection components. The ATS segment provides automated dispensing systems for the attachment, protection, and coating of fluids, as well as related gas plasma treatment systems for cleaning and conditioning surfaces; and bond testing and automated optical, acoustic microscopy, and x-ray inspection systems for use in semiconductor and printed circuit board industries. The company markets its products through direct sales force, as well as distributors and sales representatives. Nordson Corporation was founded in 1909 and is headquartered in Westlake, Ohio.

About Symbotic

(Get Rating)

Symbotic Inc., an automation technology company, provides robotics and technology to improve efficiency for retailers and wholesalers in the United States. The company offers Symbotic system, an end-to-end warehouse automation system for product distribution. It also designs, assemblies, and installs modular inventory management systems and performs configuration of embedded software. Symbotic Inc. is headquartered in Wilmington, Massachusetts.

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