Nova (NASDAQ:NVMI) versus SUMCO (OTCMKTS:SUOPY) Head-To-Head Review

Nova (NASDAQ:NVMI) and SUMCO (OTCMKTS:SUOPY) are both 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.

Volatility and Risk

Nova has a beta of 1.79, meaning that its stock price is 79% more volatile than the S&P 500. Comparatively, SUMCO has a beta of 1.55, meaning that its stock price is 55% more volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Nova	28.84%	21.41%	11.95%
SUMCO	-6.60%	-4.24%	-2.41%

Analyst Ratings

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Nova	0	4	7	0	2.64
SUMCO	0	1	1	0	2.50

Nova presently has a consensus target price of $499.44, indicating a potential upside of 41.49%. Given Nova’s stronger consensus rating and higher probable upside, analysts clearly believe Nova is more favorable than SUMCO.

Institutional & Insider Ownership

83.0% of Nova shares are owned by institutional investors. Comparatively, 0.0% of SUMCO shares are owned by institutional investors. 1.0% of Nova 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.

Earnings & Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Nova	$880.58 million	12.74	$259.22 million	$8.08	43.69
SUMCO	$2.74 billion	2.78	-$78.72 million	($1.03)	-42.22

Nova has higher earnings, but lower revenue than SUMCO. SUMCO 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 SUMCO on 13 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 SUMCO

Sumco Corporation manufactures and sells silicon wafers for the semiconductor industry in Japan, the United States, China, Taiwan, Korea, and internationally. It provides monocrystalline ingots, as well as polished, annealed, epitaxial, junction isolated, silicon-on-insulator, and reclaimed polished wafers. The company was formerly known as Sumitomo Mitsubishi Silicon Corp. and changed its name to Sumco Corporation in August 2005. Sumco Corporation was incorporated in 1999 and is headquartered in Tokyo, Japan.