Comparing CAE (NYSE:CAE) & NOVONIX (NASDAQ:NVX)

NOVONIX (NASDAQ:NVX) and CAE (NYSE:CAE) are both computer and technology companies, but which is the superior business? We will contrast the two companies based on the strength of their profitability, institutional ownership, dividends, valuation, analyst recommendations, earnings and risk.

Analyst Recommendations

This is a summary of recent ratings and target prices for NOVONIX and CAE, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
NOVONIX	0	0	0	0	N/A
CAE	1	1	3	0	2.40

CAE has a consensus price target of $34.75, suggesting a potential upside of 69.76%. Given CAE’s higher possible upside, analysts clearly believe CAE is more favorable than NOVONIX.

Risk and Volatility

NOVONIX has a beta of 3.16, meaning that its stock price is 216% more volatile than the S&P 500. Comparatively, CAE has a beta of 1.58, meaning that its stock price is 58% more volatile than the S&P 500.

Insider and Institutional Ownership

0.1% of NOVONIX shares are held by institutional investors. Comparatively, 67.4% of CAE shares are held by institutional investors. 23.7% of NOVONIX shares are held by company insiders. Comparatively, 18.3% of CAE shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Profitability

This table compares NOVONIX and CAE’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
NOVONIX	N/A	N/A	N/A
CAE	6.20%	7.52%	3.35%

Valuation & Earnings

This table compares NOVONIX and CAE’s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
NOVONIX	$8.06 million	33.82	-$46.25 million	N/A	N/A
CAE	$3.11 billion	2.10	$168.47 million	$0.64	31.98

CAE has higher revenue and earnings than NOVONIX.

Summary

CAE beats NOVONIX on 8 of the 11 factors compared between the two stocks.

About NOVONIX

NOVONIX Limited provides battery materials and development technology for battery manufacturers, materials companies, automotive original equipment manufacturers (OEMs), and consumer electronics manufacturers in North America, Asia, Australia, and Europe. It operates through Battery Materials and Battery Technology segments. The Battery Materials segment develops and manufactures battery anode materials. The Battery Technology segment develops battery cell testing equipment, performs consulting services, and carries out research and development in battery development. The company is involved in the investment and real estate borrowing activities; and offers battery technology, battery testing hardware equipment, and battery testing and development consulting services. The company was formerly known as Graphitecorp Limited and changed its name to NOVONIX Limited in July 2017. NOVONIX Limited was incorporated in 2012 and is based in Brisbane, Australia.

About CAE

CAE Inc., together with its subsidiaries, provides simulation training and critical operations support solutions in Canada, the United States, the United Kingdom, Europe, Asia, Oceania and Africa, and Rest of Americas. It operates through three segments: Civil Aviation, Defense and Security, and Healthcare. The Civil Aviation segment provides training solutions for flight, cabin, maintenance, and ground personnel in commercial, business, and helicopter aviation; flight simulation training devices; and ab initio pilot training and crew sourcing services, as well as aircraft flight operations solutions. The Defense and Security segment offers training and mission support solutions for defense forces across multi-domain operations, OEMs, government agencies and public safety organizations. The Healthcare segment provides integrated education and training solutions, including interventional and imaging simulations, curricula, audiovisual debriefing solutions, center management platforms, and patient simulators for healthcare students and clinical professionals, hospital and university simulation centers, medical and nursing schools, paramedic organizations, defense forces, medical societies, public health agencies and OEMs. The company was formerly known as CAE Industries Ltd. and changed its name to CAE Inc. in 1993. CAE Inc. was incorporated in 1947 and is headquartered in Saint-Laurent, Canada.