NVE (NASDAQ:NVEC – Get Free Report) and Nova (NASDAQ:NVMI – Get Free Report) are both computer and technology companies, but which is the better investment? We will contrast the two companies based on the strength of their valuation, analyst recommendations, profitability, dividends, earnings, risk and institutional ownership.
Risk & Volatility
NVE has a beta of 1.39, meaning that its stock price is 39% more volatile than the S&P 500. Comparatively, Nova has a beta of 1.75, meaning that its stock price is 75% more volatile than the S&P 500.
Analyst Recommendations
This is a breakdown of current ratings for NVE and Nova, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| NVE | 0 | 1 | 0 | 0 | 2.00 |
| Nova | 0 | 2 | 8 | 0 | 2.80 |
Valuation and Earnings
This table compares NVE and Nova”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| NVE | $26.33 million | 17.73 | $15.20 million | $3.14 | 30.74 |
| Nova | $902.53 million | 18.59 | $259.22 million | $8.02 | 65.82 |
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.
Profitability
This table compares NVE and Nova’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| NVE | 57.72% | 25.62% | 24.78% |
| Nova | 29.21% | 21.77% | 12.56% |
Institutional and Insider Ownership
65.9% of NVE shares are owned by institutional investors. Comparatively, 83.0% of Nova shares are owned by institutional investors. 1.9% of NVE shares are owned by company insiders. Comparatively, 1.0% of Nova 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.
Summary
Nova beats NVE on 10 of the 14 factors compared between the two stocks.
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.
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.
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