Applied Micro Circuits (NASDAQ: AMCC) and Nova Measuring Instruments (NASDAQ:NVMI) are both technology companies, but which is the superior business? We will compare the two businesses based on the strength of their analyst recommendations, valuation, institutional ownership, risk, profitability, dividends and earnings.

Insider & Institutional Ownership

73.3% of Applied Micro Circuits shares are owned by institutional investors. Comparatively, 37.3% of Nova Measuring Instruments shares are owned by institutional investors. 12.4% of Applied Micro Circuits shares are owned by company insiders. Comparatively, 1.0% of Nova Measuring Instruments shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Analyst Ratings

This is a breakdown of current ratings and price targets for Applied Micro Circuits and Nova Measuring Instruments, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Applied Micro Circuits 0 0 0 0 N/A
Nova Measuring Instruments 0 0 3 0 3.00

Nova Measuring Instruments has a consensus target price of $28.67, indicating a potential upside of 10.64%.

Earnings & Valuation

This table compares Applied Micro Circuits and Nova Measuring Instruments’ gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Applied Micro Circuits N/A N/A N/A ($0.38) N/A
Nova Measuring Instruments $163.90 million 4.40 $9.64 million $1.65 15.70

Nova Measuring Instruments has higher revenue and earnings than Applied Micro Circuits. Applied Micro Circuits is trading at a lower price-to-earnings ratio than Nova Measuring Instruments, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Applied Micro Circuits and Nova Measuring Instruments’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Applied Micro Circuits -11.11% -16.63% -13.04%
Nova Measuring Instruments 21.68% 26.14% 20.86%

Summary

Nova Measuring Instruments beats Applied Micro Circuits on 7 of the 9 factors compared between the two stocks.

About Applied Micro Circuits

Applied Micro Circuits Corporation (AMCC) provides silicon solutions for cloud infrastructure and data centers, as well as connectivity products for edge, metro and long haul communications equipment. The Company’s products serve Computing and Connectivity markets. Its Computing products include the X-Gene family of server processors, based on the ARMv8 64-bit Instruction Set Architecture (ISA), which target mainstream cloud and data center infrastructure, including hyperscale, telco, enterprise and high performance computing. It also offers embedded computing products, which include HeliX family of processors, based on the ARM 64-bit ISA and its PowerPC products, based on Power Architecture. Its embedded Computing products are deployed in various applications, including networking and telecom, enterprise storage and industrial applications. The Connectivity business includes X-Weave family of products for service providers and public cloud, private cloud and enterprise data centers.

About Nova Measuring Instruments

Nova Measuring Instruments Ltd. provides metrology solutions for the semiconductor manufacturing industry. The Company offers in-line Optical and x-ray stand-alone metrology systems, as well as integrated optical metrology systems, which are attached directly to wafer fabrication process equipment. Its metrology systems measure various film thickness and composition properties, as well as critical-dimension (CD) variables during various front-end and back-end of line steps in the semiconductor wafer fabrication process. Its product portfolio includes a set of in-situ, integrated and stand-alone metrology platforms suited for dimensional, films and material metrology measurements for process control across multiple semiconductor manufacturing process steps. Its products include NovaScan 2040, NovaScan 3090Next, Nova i500, Nova T500, Nova T600, Nova V2600 TSV metrology system, NovaMars, Nova Hybrid Metrology solution, Nova Fleet Management, VeraFlex II, VeraFlex III XF and QED.

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