Nova (NASDAQ:NVMI) and Pixelworks (NASDAQ:PXLW) Head-To-Head Survey

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Nova	29.10%	24.36%	16.66%
Pixelworks	-82.36%	-300.58%	-43.46%

Valuation and Earnings

This table compares Nova and Pixelworks”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Nova	$672.40 million	13.09	$183.76 million	$7.35	40.74
Pixelworks	$43.21 million	1.25	-$28.72 million	($5.59)	-1.81

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

Volatility and Risk

Nova has a beta of 1.72, indicating that its share price is 72% more volatile than the S&P 500. Comparatively, Pixelworks has a beta of 1.69, indicating that its share price is 69% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent recommendations for Nova and Pixelworks, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Nova	0	1	4	0	2.80
Pixelworks	0	0	3	0	3.00

Nova currently has a consensus price target of $282.50, indicating a potential downside of 5.65%. Pixelworks has a consensus price target of $11.67, indicating a potential upside of 15.63%. Given Pixelworks’ stronger consensus rating and higher probable upside, analysts plainly believe Pixelworks is more favorable than Nova.

Institutional and Insider Ownership

83.0% of Nova shares are held by institutional investors. Comparatively, 21.4% of Pixelworks shares are held by institutional investors. 1.0% of Nova shares are held by insiders. Comparatively, 5.3% of Pixelworks shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Summary

Nova beats Pixelworks 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 Pixelworks

Pixelworks, Inc., together with its subsidiaries, develops and markets semiconductor and software solutions for mobile, home and enterprise, and cinema markets in the United States, Japan, China, Taiwan, Korea, and Europe. The company offers imageprocessor integrated circuits, such as embedded microprocessors, digital signal processing technology, and software that control the operations and signal processing within high-end display systems; visual processor integrated circuits that works with a mobile application processor; and transcoder integrated circuits which includes software that control the operations and signal processing for converting multiple bitrates, resolutions and codecs to provide bandwidth efficient video transmissions based on industry standard protocols. It also provides software and platform licensing products comprising Pixelworks Pro Software, a software that enables development and customize the look and feel of mobile products by use of various features, such as absolute color accuracy, HDR tone mapping, SDR-to-HDR conversion, and others; and TrueCut Motion Platform, content creation tool which provides the ability to dial in a motion look on a shot-by-shot basis. The company distributes its products to integrators, branded manufacturers, and branded suppliers. Pixelworks, Inc. was founded in 1997 and is based in Portland, Oregon.