Nova (NASDAQ:NVMI – Get Free Report) and SkyWater Technology (NASDAQ:SKYT – Get Free Report) are both computer and technology companies, but which is the superior business? We will contrast the two businesses based on the strength of their institutional ownership, valuation, dividends, analyst recommendations, earnings, profitability and risk.
Analyst Ratings
This is a breakdown of current recommendations for Nova and SkyWater Technology, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Nova | 0 | 1 | 8 | 0 | 2.89 |
| SkyWater Technology | 1 | 5 | 1 | 0 | 2.00 |
Nova presently has a consensus price target of $426.63, suggesting a potential downside of 3.86%. SkyWater Technology has a consensus price target of $32.00, suggesting a potential upside of 9.48%. Given SkyWater Technology’s higher possible upside, analysts plainly believe SkyWater Technology is more favorable than Nova.
Profitability
| Net Margins | Return on Equity | Return on Assets | |
| Nova | 29.44% | 22.90% | 13.65% |
| SkyWater Technology | 36.36% | -4.96% | -1.05% |
Risk and Volatility
Nova has a beta of 1.84, indicating that its stock price is 84% more volatile than the S&P 500. Comparatively, SkyWater Technology has a beta of 3.5, indicating that its stock price is 250% more volatile than the S&P 500.
Institutional and Insider Ownership
83.0% of Nova shares are owned by institutional investors. Comparatively, 70.0% of SkyWater Technology shares are owned by institutional investors. 1.0% of Nova shares are owned by insiders. Comparatively, 37.9% of SkyWater Technology shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.
Earnings & Valuation
This table compares Nova and SkyWater Technology”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Nova | $880.58 million | 14.82 | $259.22 million | $8.01 | 55.40 |
| SkyWater Technology | $342.27 million | 4.14 | -$6.79 million | $2.58 | 11.33 |
Nova has higher revenue and earnings than SkyWater Technology. SkyWater Technology 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 SkyWater Technology 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 SkyWater Technology
SkyWater Technology, Inc., together with its subsidiaries, operates as a pure-play technology foundry that engages in the provision of semiconductor development, manufacturing, and packaging services in the United States. The company offers engineering and process development support services to co-create technologies with customers; and semiconductor manufacturing services for various silicon-based analog and mixed-signal, micro-electromechanical systems, and rad-hard integrated circuits. It serves customers operating in the computation, aerospace and defense, automotive, bio-health, consumer, and industrial sectors. The company was incorporated in 2016 and is headquartered in Bloomington, Minnesota.
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