The Battle Of Novanta Inc. ($NOVT) And MTS Systems Corporation ($MTSC)

2019-08-20 | Welcome! Today we compared how two different stocks in the Industrial Machinery/Components industry are trading: Novanta Inc. and MTS Systems Corporation. While these two companies may have very different market capitalizations and balance sheets, they are worth comparing given how they are in the same sector. Below you’ll see how the different technical indicators differ between these two stocks, and we’ll also show what Trading View thinks of them based on the technical analysis. But before we get ahead of ourselves, please note that this is technical analysis only (ie. analyzing how these companies are trading, not digging into the company fundamentals), and therefore you should not rely only on this to guide you on whether you should buy or sell anything – take it with a grain of salt only, and pay attention to the disclaimer below. With that said, many traders find value in technical analysis and others even swear by it, so if that is you, I hope my analysis will be of use to you. Let’s get to it…

First things first: during its last day of trading, Novanta Inc. opened at 75.15, got to a maximum price of 75.84 and dropped to as low as 74.75 before finishing the session at 74.86. In total there were 144000 shares traded, which is enough to conduct our analysis. Compare that now to MTS Systems Corporation, which opened at 59.38, had a high of 60.58, a low of 59.2, closed at 60.35 and had a total volume of 180400.

VOLUME ANALYSIS: Generally, the higher the volume indicators are, the better – you need liquidity to trade, after all. All of the volume indicators are as follows… (click here for an explanation on volume)

Volume Indicator Novanta Inc. MTS Systems Corporation
Accumulation-distribution index 289.89244 144.77802
on-balance volume -73.9 -58.85
chaikin money flow

2.15942 1.3
force index

9.1964 2.388
ease of movement rating

0.038 0.0099
volume-price trend

-7.69502 3.79785
negative volume index

1000.0 1000.0

VOLATILITY ANALYSIS: Now to compare the volatility between these two companies… (click here for an explanation on volatility)

Volatility Indicator Novanta Inc. MTS Systems Corporation
Average true range 1.56516 0.6618
Bolinger bands 77.03553 59.65711
Upper bollinger band 69.96447 58.24289
Lower bollinger band

74.75 59.2
Bollinger high band indicator

1.0 1.0
Bollinger high low indicator

1.0 nan
Central keltner channel

75.24667 59.72
High band keltner channel

74.55667 58.52
Low band keltner channel

75.93667 60.92
High band keltner channel indicator

1.0 1.0
Low band keltner channel indicator

1.0 1.0
Donchain channel high band

74.75 59.2
Donchain channel low band

74.75 59.2
Donchain channel high band indicator

1.0 1.0
Donchain channel low band indicator

1.0 1.0

TREND ANALYSIS: Now for the most interesting and detailed part, the trend. Where is the stock actually going? Let’s compare the indicators… (click here for an explanation on trend)

Trend Indicator Novanta Inc. MTS Systems Corporation
Moving Average Convergence Divergence (MACD) trend_macd -0.01122
MACD signal -0.03116 -0.00623
MACD difference -0.02493 -0.00499
fast Exponential Moving Average (EMA) indicator

74.75 59.2
slow Exponential Moving Average (EMA) indicator

74.75 59.2
Average Directional Movement Index (ADX)

unknown unknown
ADX positive

20.0 20.0
ADX negative

20.0 20.0
positive Vortex Indicator (VI)

1.0 1.0
negative VI

1.0 1.0
trend vortex difference

0.1421 0.02573
trix

-7.80017 4.71304
Mass Index (MI)

1.0 1.0
Commodity Channel Index (CCI)

-66.66667 -66.66667
Detrended Price Oscillator (DPO)

8.60805 -3.51576
KST Oscillator (KST)

-103.26598 63.13747
KST Oscillator (KST Signal)

-103.26598 63.13747
KST difference

-7.49778 -2.2448
Ichimoku rating

75.495 59.98
Ichimoku B rating

75.495 59.98
Ichimoku visual trend A

84.36517 57.04594
Ichimoku visual trend B

83.33244 57.7415
Aroon Indicator (AI)

4.0 4.0
AI indicator down

4.0 4.0
AI difference

-4.0 -4.0

MOMENTUM ANALYSIS: What about momentum? Let’s dive into it… (click here for an explanation on momentum)

Momentum Indicator Novanta Inc. MTS Systems Corporation
Relative Strength Index (RSI) 50.0 50.0
Money Flow Index (MFI) 19.45668 100.0
True Strength Index (TSI) -100.0 100.0
ultimate oscillator

-14.49844 95.12956
stochastic oscillator

157.97101 115.0
stochastic oscillator signal

157.97101 115.0
Williams %R rating

57.97101 15.0
awesome oscillator

-0.5953 -0.0455

RETURNS: That’s all for technical analysis. Now let’s just list the returns for Novanta Inc. and MTS Systems Corporation.

Daily return -10.3266 6.31375
Daily log return -3.40169 -0.84818
Cumulative return -3.34448 -0.84459

So there you have it: our deep, grueling analysis comparing Novanta Inc. and MTS Systems Corporation together. But what does all of the above mean? Various technical indicators above are positive, while others are negative, and if we want to decide overall if the technical analysis indicates a bullish or bearish chart, we have to consider all of them together. That’s what the Trading View widget below can do, so let’s see what it says considering all these indicators. First, here’s Novanta Inc.:

The verdict above will consider all these technical indicators and consider which are strong and weak, and then put them all together to come up with a conclusion stating whether NOVT is strong or weak. Again – this is not a reliable indication of whether Novanta Inc. is a good investment! None of these indicators consider the company fundamentals. All of this data is based on how it trades only. Now with that out of the way, let’s compare it with MTS Systems Corporation

So there you have it. We hope you have found this analysis useful, and if you see any errors or have any feedback, please comment below.

How can you profit off trading these 2 companies and other stocks like it? First, check out the Beat The Market Analyzer software – this is worth its weight in gold. Some other great services for earning income from trading and investing are Dividend Stocks (an outstanding resource for anyone interested in high dividend paying stocks), Microcap Millionaires (the best site online for profiting off micro-cap stocks) and Trading Code (an extremely powerful system for profiting off trading).

DISCLAIMER: We are not registered investment advisers and the above analysis should be taken at face value only. We strongly advise against buying or selling anything based solely on our analysis above, and are not responsible for any losses that you may incur if you choose make any investment decisions based on the above.

Gary Ivenchuck

Gary is a stock trading expert and is responsible for covering technical analysis news on Logistics Business Review. Recently he has been working tirelessly to analyse stocks for our readers, and is always available to hear from people asking for stock analysis.

gary@logistics-business-review.com
Gary Ivenchuck

Leave a Reply

Your email address will not be published. Required fields are marked *