Cognex vs Novanta
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KIRA’s take AI analyst
I put Cognex and Novanta side by side, using each one’s latest annual report. Here is what stands out:
- Cognex is the larger business, with $994M of revenue in fiscal 2025 against $981M for Novanta.
- Cognex grew revenue faster (8.7%, against 3.3%).
- Cognex kept more of each dollar of sales as operating profit (16.4% operating margin, against 9.6%).
- Cognex turned more of its sales into free cash flow (23.8% FCF margin, against 4.9%).
- Cognex earned a higher return on the capital invested in it (8.4%, against 6.5%).
- Investors pay more for each dollar of Novanta’s earnings: a P/E of 89.7x against 53.4x for Cognex.
Who comes out ahead
Of the 11 measures where higher (or lower) is clearly better, how many each company leads.
Cognex
CGNX
10/11
Revenue growthGross marginOperating marginNet marginFCF marginReturn on capitalReturn on equityPiotroski F-scoreNet debt / EBITDAShare count change
Novanta
NOVT
1/11
5-year growth
Side by side
Best in the row
| Latest fiscal year | CGNX FY25 | NOVT FY25 |
|---|---|---|
| Size | ||
| Market cap | $9.4B | $5.8B |
| Revenue | $994M | $981M |
| Free cash flow | $237M | $48.4M |
| Net income | $114M | $53.8M |
| Growth | ||
| Revenue growth | 8.7% | 3.3% |
| 5-year growth | 4.2% | 10.7% |
| Share count change | −1.9% | 1.6% |
| Profitability | ||
| Gross margin | 66.9% | 44.4% |
| Operating margin | 16.4% | 9.6% |
| Net margin | 11.5% | 5.5% |
| FCF margin | 23.8% | 4.9% |
| Return on capital | 8.4% | 6.5% |
| Return on equity | 7.6% | 5.2% |
| Balance sheet | ||
| Net debt | −$337M | −$127M |
| Net debt / EBITDA | −1.7x | −0.8x |
| Dividends and buybacks | $206M | $39.3M |
| Valuation & quality | ||
| P/E | 53.4x | 89.7x |
| Piotroski F-score | 7 | 5 |
Ten years
Revenue
Operating margin
Free cash flow
Return on capital
Each company's latest fiscal year; fiscal years end in different months. The best value in each row is highlighted where higher (or lower) is clearly better. Not investment advice.