Head-To-Head Survey: SUMCO (OTCMKTS:SUOPY) versus Nova (NASDAQ:NVMI)

Nova (NASDAQ:NVMI) and SUMCO (OTCMKTS:SUOPY) are both technology companies, but which is the superior stock? We will contrast the two businesses based on the strength of their analyst recommendations, earnings, valuation, risk, institutional ownership, profitability and dividends.

Earnings and Valuation

This table compares Nova and SUMCO”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	14.30	$259.22 million	$8.08	49.02
SUMCO	$2.74 billion	2.99	-$78.72 million	($1.03)	-45.45

Nova has higher earnings, but lower revenue than SUMCO. SUMCO 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 Nova and SUMCO’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Nova	28.84%	21.41%	11.95%
SUMCO	-6.60%	-4.24%	-2.41%

Insider and Institutional Ownership

83.0% of Nova shares are held by institutional investors. Comparatively, 0.0% of SUMCO shares are held by institutional investors. 1.0% of Nova shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Risk & Volatility

Nova has a beta of 1.79, meaning that its stock price is 79% more volatile than the S&P 500. Comparatively, SUMCO has a beta of 1.55, meaning that its stock price is 55% more volatile than the S&P 500.

Analyst Recommendations

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Nova	0	2	8	1	2.91
SUMCO	0	1	1	0	2.50

Nova currently has a consensus price target of $514.44, suggesting a potential upside of 29.87%. Given Nova’s stronger consensus rating and higher possible upside, equities analysts plainly believe Nova is more favorable than SUMCO.

Summary

Nova beats SUMCO on 14 of the 15 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 SUMCO

Sumco Corporation manufactures and sells silicon wafers for the semiconductor industry in Japan, the United States, China, Taiwan, Korea, and internationally. It provides monocrystalline ingots, as well as polished, annealed, epitaxial, junction isolated, silicon-on-insulator, and reclaimed polished wafers. The company was formerly known as Sumitomo Mitsubishi Silicon Corp. and changed its name to Sumco Corporation in August 2005. Sumco Corporation was incorporated in 1999 and is headquartered in Tokyo, Japan.