Contrasting Nova (NASDAQ:NVMI) & NVE (NASDAQ:NVEC)

Nova (NASDAQ:NVMI) and NVE (NASDAQ:NVEC) are both computer and technology companies, but which is the better business? We will compare the two businesses based on the strength of their valuation, risk, analyst recommendations, earnings, dividends, institutional ownership and profitability.

Analyst Ratings

This is a summary of recent ratings for Nova and NVE, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Nova	0	2	9	0	2.82
NVE	0	1	0	0	2.00

Nova presently has a consensus target price of $518.22, indicating a potential downside of 9.92%. Given Nova’s stronger consensus rating and higher probable upside, analysts clearly believe Nova is more favorable than NVE.

Volatility and Risk

Nova has a beta of 1.75, meaning that its stock price is 75% more volatile than the S&P 500. Comparatively, NVE has a beta of 1.4, meaning that its stock price is 40% more volatile than the S&P 500.

Institutional & Insider Ownership

83.0% of Nova shares are owned by institutional investors. Comparatively, 66.0% of NVE shares are owned by institutional investors. 1.0% of Nova shares are owned by insiders. Comparatively, 1.9% of NVE shares are owned by 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 Nova and NVE’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Nova	29.21%	21.77%	12.56%
NVE	57.72%	25.62%	24.78%

Earnings & Valuation

This table compares Nova and NVE”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Nova	$880.58 million	20.76	$259.22 million	$8.02	71.73
NVE	$26.33 million	20.30	$15.20 million	$3.14	35.18

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

Summary

Nova beats NVE on 10 of the 14 factors compared between the two stocks.

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.

About NVE

NVE Corporation develops and sells devices that use spintronics, a nanotechnology that relies on electron spin to acquire, store, and transmit information in the United States and internationally. The company manufactures spintronic products, including sensors and couplers for use in acquiring and transmitting data. Its products comprise standard sensors to detect the presence of a magnetic or metallic material to determine position, rotation, or speed for the factory automation market; and custom and medical sensors for medical devices to replace electromechanical magnetic switches. The company also offers spintronic couplers for power conversion and industrial Internet of Things (IIoT) market; and DC-to-DC convertors for use in power conversion systems and industrial networks for the IIoT. In addition, it undertakes contracts for research and development, and licensing of spintronic magnetoresistive random access memory technology. NVE Corporation was founded in 1989 and is headquartered in Eden Prairie, Minnesota.