Nova (NASDAQ:NVMI) and Tower Semiconductor (NASDAQ:TSEM) Financial Survey

Tower Semiconductor (NASDAQ:TSEM) and Nova (NASDAQ:NVMI) are both large-cap computer and technology companies, but which is the better stock? We will contrast the two companies based on the strength of their institutional ownership, analyst recommendations, risk, earnings, dividends, valuation and profitability.

Institutional and Insider Ownership

70.5% of Tower Semiconductor shares are owned by institutional investors. Comparatively, 83.0% of Nova shares are owned by institutional investors. 1.0% of Tower Semiconductor shares are owned by insiders. Comparatively, 1.0% of Nova shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Profitability

This table compares Tower Semiconductor and Nova’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Tower Semiconductor	12.92%	7.16%	6.20%
Nova	28.73%	24.09%	15.03%

Valuation and Earnings

This table compares Tower Semiconductor and Nova”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Tower Semiconductor	$1.44 billion	N/A	$207.86 million	$1.72	69.78
Nova	$672.40 million	17.23	$183.76 million	$7.65	51.51

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

Risk and Volatility

Tower Semiconductor has a beta of 0.87, meaning that its share price is 13% less volatile than the S&P 500. Comparatively, Nova has a beta of 1.84, meaning that its share price is 84% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current ratings for Tower Semiconductor and Nova, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Tower Semiconductor	0	3	2	0	2.40
Nova	0	3	6	0	2.67

Tower Semiconductor presently has a consensus target price of $126.75, suggesting a potential upside of 5.60%. Nova has a consensus target price of $322.86, suggesting a potential downside of 18.07%. Given Tower Semiconductor’s higher probable upside, analysts clearly believe Tower Semiconductor is more favorable than Nova.

Summary

Nova beats Tower Semiconductor on 8 of the 12 factors compared between the two stocks.

About Tower Semiconductor

Tower Semiconductor Ltd., an independent semiconductor foundry, focus on specialty process technologies to manufacture analog intensive mixed-signal semiconductor devices in Israel, the United States, Japan, Europe, and internationally. It provides various customizable process technologies, including SiGe, BiCMOS, mixed signal/CMOS, RF CMOS, CMOS image sensor, integrated power management, and MEMS. The Company also provides design enablement platform for quick and accurate design cycle, as well as transfer optimization and development process services to integrated device manufacturers and fabless companies. It serves various markets, such as consumer electronics, personal computers, communications, automotive, industrial, aerospace, military, and medical device products. The company was incorporated in 1993 and is headquartered in Migdal Haemek, Israel.

About Nova

Nova Ltd. designs, develops, produces, and sells process control systems used in the manufacture of semiconductors in Israel, Taiwan, the United States, China, Korea, and internationally. Its product portfolio includes a set of metrology platforms for dimensional, films, and materials and chemical metrology measurements for process control for various semiconductor manufacturing process steps, including lithography, etch, chemical mechanical planarization, deposition, electrochemical plating, and advanced packaging. The company serves various sectors of the integrated circuit manufacturing industry, including logic, foundries, and memory manufacturers, as well as process equipment manufacturers. Nova Ltd. was formerly known as Nova Measuring Instruments Ltd. and changed its name to Nova Ltd. in July 2021. Nova Ltd. was incorporated in 1993 and is headquartered in Rehovot, Israel.