AEIS vs NOVT

For growth investors, Advanced Energy Industries, Inc.

(AEIS) is the stronger pick with 21. 4% revenue growth year-over-year, versus 3. 3% for Novanta Inc. (NOVT). Advanced Energy Industries, Inc. (AEIS) offers the better valuation at 94. 0x trailing P/E (40. 4x forward), making it the more compelling value choice. Analysts rate Advanced Energy Industries, Inc. (AEIS) a "Buy" — based on 24 analyst ratings — the highest consensus in this comparison. The "better buy" depends entirely on your goals: growth investors should weight revenue trajectory, value investors should weight P/E and PEG, and income investors should weight dividend yield and streak.

On trailing P/E, Advanced Energy Industries, Inc.

(AEIS) is the cheapest at 94. 0x versus Novanta Inc. at 94. 5x. On forward P/E, Novanta Inc. is actually cheaper at 38. 2x — notably different from the trailing picture, reflecting expected earnings growth. The PEG ratio (P/E divided by earnings growth rate) is the most growth-adjusted single valuation metric: Novanta Inc. wins at 11. 61x versus Advanced Energy Industries, Inc. 's 21. 57x.

Over the past 5 years, Advanced Energy Industries, Inc.

(AEIS) delivered a total return of +301. 3%, compared to +9. 6% for Novanta Inc. (NOVT). Over 10 years, the gap is even starker: AEIS returned +928. 9% versus NOVT's +853. 7%. Past returns do not guarantee future results, and the stock with the higher historical return may already have its best growth priced in.

By beta (market sensitivity over 5 years), Novanta Inc.

(NOVT) is the lower-risk stock at 2. 02β versus Advanced Energy Industries, Inc. 's 2. 18β — meaning AEIS is approximately 8% more volatile than NOVT relative to the S&P 500. On balance sheet safety, Novanta Inc. (NOVT) carries a lower debt/equity ratio of 26% versus 50% for Advanced Energy Industries, Inc. — giving it more financial flexibility in a downturn.

By revenue growth (latest reported year), Advanced Energy Industries, Inc.

(AEIS) is pulling ahead at 21. 4% versus 3. 3% for Novanta Inc. (NOVT). On earnings-per-share growth, the picture is similar: Advanced Energy Industries, Inc. grew EPS 168. 5% year-over-year, compared to -16. 9% for Novanta Inc.. Over a 3-year CAGR, NOVT leads at 4. 4% annualised revenue growth. Higher growth typically commands a higher valuation multiple — check whether the premium P/E or P/S is justified by the growth rate using the PEG ratio.

Advanced Energy Industries, Inc.

(AEIS) is the more profitable company, earning 8. 2% net margin versus 5. 5% for Novanta Inc. — meaning it keeps 8. 2% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: NOVT leads at 11. 9% versus 10. 9% for AEIS. At the gross margin level — before operating expenses — NOVT leads at 44. 4%, reflecting greater pricing power or product mix advantage. Stronger margins indicate durable pricing power, lower cost of revenue, or higher mix of software/services. They are one of the clearest signs of business quality.

The PEG ratio (forward P/E divided by expected earnings growth rate) is the most precise measure of undervaluation relative to growth potential.

By this metric, Novanta Inc. (NOVT) is the more undervalued stock at a PEG of 11. 61x versus Advanced Energy Industries, Inc. 's 21. 57x. Both stocks trade at elevated growth-adjusted valuations, so expected growth needs to materialise. On forward earnings alone, Novanta Inc. (NOVT) trades at 38. 2x forward P/E versus 40. 4x for Advanced Energy Industries, Inc. — 2. 1x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for NOVT: 8. 0% to $150. 00.

In this comparison, AEIS (0.

1% yield) pays a dividend. NOVT does not pay a meaningful dividend and should not be held primarily for income.

For long-horizon retirement investors, Advanced Energy Industries, Inc.

(AEIS) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (+928. 9% 10Y return). Novanta Inc. (NOVT) carries a higher beta of 2. 02 — meaning larger drawdowns in market downturns, which matters significantly when you cannot wait years for a recovery. Both have compounded well over 10 years (AEIS: +928. 9%, NOVT: +853. 7%), confirming both are viable long-term holds — but the lower-volatility option typically results in less emotional selling during corrections. Retirement portfolios generally favour predictability over maximum returns. Consult a financial advisor before making allocation decisions.

These companies operate in different sectors (AEIS (Industrials) and NOVT (Technology)), which means they face different economic cycles, regulatory environments, and macro sensitivities — making direct comparison nuanced.

In terms of investment character: AEIS is a mid-cap high-growth stock; NOVT is a small-cap quality compounder stock. These fundamental differences mean investors should not choose between them on a single metric — the "better stock" depends entirely on which of these characteristics aligns with your investment strategy.