Analyzing Soitec (OTCMKTS:SLOIF) & Nova (NASDAQ:NVMI)

Soitec (OTCMKTS:SLOIF) and Nova (NASDAQ:NVMI) are both computer and technology companies, but which is the superior investment? We will contrast the two companies based on the strength of their profitability, earnings, dividends, analyst recommendations, risk, valuation and institutional ownership.

Analyst Recommendations

This is a breakdown of current recommendations and price targets for Soitec and Nova, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Soitec	1	0	0	0	1.00
Nova	0	2	5	0	2.71

Nova has a consensus price target of $307.00, suggesting a potential downside of 1.77%. Given Nova’s stronger consensus rating and higher probable upside, analysts plainly believe Nova is more favorable than Soitec.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Soitec	N/A	N/A	N/A
Nova	29.10%	24.36%	16.66%

Insider and Institutional Ownership

83.0% of Nova shares are held by institutional investors. 1.0% of Nova shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Valuation & Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Soitec	$937.30 million	1.10	$98.66 million	N/A	N/A
Nova	$852.72 million	10.78	$183.76 million	$7.65	40.85

Nova has lower revenue, but higher earnings than Soitec.

Risk & Volatility

Soitec has a beta of 0.4, suggesting that its share price is 60% less volatile than the S&P 500. Comparatively, Nova has a beta of 1.79, suggesting that its share price is 79% more volatile than the S&P 500.

Summary

Nova beats Soitec on 11 of the 12 factors compared between the two stocks.

About Soitec

Soitec SA designs and manufactures semiconductor materials worldwide. Its products are used to manufacture chips that are used in smart phones, tablets, computers, IT servers, and data centers, as well as electronic components in cars, connected devices, and industrial and medical equipment. It provides CONNECT Radio Frequency Silicon-on-Insulator (RF-SOI) for smartphone front-end modules; CONNECT Piezoelectric-on-Insulator RF filters for smartphone; and CONNECT RF gallium nitride for 5g infrastructure base stations and smartphones, as well as CONNECT Fully Depleted Silicon-On-Insulator (FD-SOI). The company also offers Auto Power-SOI product for automotive and industrial markets; Auto Smartsic for green mobility; and AUTO POWER-allium nitride for power efficiency, as well as AUTO FD-SOI for automotive radar and processors. In addition, it provides Smart photonics-SOI products for optical networking; Smart Imager-SOI products for next generation 3D image sensing; Smart FD-SOI for ultra low power, energy efficient, and body biasing; smart partially depleted (PD) -SOI for high-performance computing markets. Soitec SA was incorporated in 1992 and is headquartered in Bernin, France.

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.