Nova (NASDAQ:NVMI) & GlobalFoundries (NASDAQ:GFS) Head-To-Head Comparison

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Nova	29.10%	24.36%	16.66%
GlobalFoundries	-1.68%	6.55%	4.32%

Analyst Ratings

This is a breakdown of current recommendations for Nova and GlobalFoundries, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Nova	0	1	4	0	2.80
GlobalFoundries	0	6	6	0	2.50

Nova currently has a consensus target price of $282.50, suggesting a potential upside of 8.86%. GlobalFoundries has a consensus target price of $44.92, suggesting a potential upside of 32.85%. Given GlobalFoundries’ higher possible upside, analysts plainly believe GlobalFoundries is more favorable than Nova.

Insider and Institutional Ownership

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

Risk & Volatility

Nova has a beta of 1.67, suggesting that its share price is 67% more volatile than the S&P 500. Comparatively, GlobalFoundries has a beta of 1.5, suggesting that its share price is 50% more volatile than the S&P 500.

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Nova	$672.40 million	11.35	$183.76 million	$7.35	35.31
GlobalFoundries	$6.84 billion	2.73	-$265.00 million	($0.21)	-161.00

Nova has higher earnings, but lower revenue than GlobalFoundries. GlobalFoundries 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 GlobalFoundries on 11 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 GlobalFoundries

GlobalFoundries Inc., a semiconductor foundry, provides range of mainstream wafer fabrication services and technologies worldwide. It manufactures various semiconductor devices, including microprocessors, mobile application processors, baseband processors, network processors, radio frequency modems, microcontrollers, and power management units. GlobalFoundries Inc. has a strategic partnership with Efficient Computer to develop high-performance computer processors. The company was incorporated in 2008 and is headquartered in Malta, New York.