Soitec (OTCMKTS:SLOIF) versus Nova (NASDAQ:NVMI) Critical Survey

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

Insider & 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 hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Nova	$852.72 million	11.12	$183.76 million	$7.65	42.16
Soitec	$937.30 million	1.19	$98.66 million	N/A	N/A

Nova has higher earnings, but lower revenue than Soitec.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Nova	28.73%	24.09%	15.03%
Soitec	N/A	N/A	N/A

Risk and Volatility

Nova has a beta of 1.84, suggesting that its stock price is 84% more volatile than the S&P 500. Comparatively, Soitec has a beta of 0.44, suggesting that its stock price is 56% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Nova and Soitec, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Nova	0	3	5	0	2.63
Soitec	1	0	0	0	1.00

Nova presently has a consensus price target of $311.67, suggesting a potential downside of 3.38%. Given Nova’s stronger consensus rating and higher probable upside, equities analysts clearly believe Nova is more favorable than Soitec.

Summary

Nova beats Soitec on 11 of the 12 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 Soitec

Soitec SA designs and manufactures semiconductor materials worldwide. Its products are used to manufacture chips that are used in smart phones, tablets, computers, IT servers, and data centers, as well as electronic components in cars, connected devices, and industrial and medical equipment. It provides CONNECT Radio Frequency Silicon-on-Insulator (RF-SOI) for smartphone front-end modules; CONNECT Piezoelectric-on-Insulator RF filters for smartphone; and CONNECT RF gallium nitride for 5g infrastructure base stations and smartphones, as well as CONNECT Fully Depleted Silicon-On-Insulator (FD-SOI). The company also offers Auto Power-SOI product for automotive and industrial markets; Auto Smartsic for green mobility; and AUTO POWER-allium nitride for power efficiency, as well as AUTO FD-SOI for automotive radar and processors. In addition, it provides Smart photonics-SOI products for optical networking; Smart Imager-SOI products for next generation 3D image sensing; Smart FD-SOI for ultra low power, energy efficient, and body biasing; smart partially depleted (PD) -SOI for high-performance computing markets. Soitec SA was incorporated in 1992 and is headquartered in Bernin, France.