Nanometrics (NASDAQ: NANO) is one of 21 public companies in the “Semiconductor Equipment & Testing” industry, but how does it contrast to its peers? We will compare Nanometrics to similar businesses based on the strength of its risk, analyst recommendations, dividends, earnings, valuation, profitability and institutional ownership.

Insider and Institutional Ownership

81.3% of Nanometrics shares are held by institutional investors. Comparatively, 79.9% of shares of all “Semiconductor Equipment & Testing” companies are held by institutional investors. 6.7% of Nanometrics shares are held by company insiders. Comparatively, 13.9% of shares of all “Semiconductor Equipment & Testing” companies are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Profitability

This table compares Nanometrics and its peers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Nanometrics 19.94% 11.95% 10.01%
Nanometrics Competitors 6.70% 12.56% 7.30%

Volatility and Risk

Nanometrics has a beta of 1.74, meaning that its stock price is 74% more volatile than the S&P 500. Comparatively, Nanometrics’ peers have a beta of 1.18, meaning that their average stock price is 18% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for Nanometrics and its peers, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Nanometrics 0 0 3 0 3.00
Nanometrics Competitors 110 651 1337 51 2.62

Nanometrics presently has a consensus price target of $31.67, suggesting a potential upside of 19.05%. As a group, “Semiconductor Equipment & Testing” companies have a potential upside of 9.46%. Given Nanometrics’ stronger consensus rating and higher probable upside, equities research analysts plainly believe Nanometrics is more favorable than its peers.

Earnings and Valuation

This table compares Nanometrics and its peers gross revenue, earnings per share and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
Nanometrics $241.61 million $41.73 million 14.15
Nanometrics Competitors $1.98 billion $516.71 million 8.55

Nanometrics’ peers have higher revenue and earnings than Nanometrics. Nanometrics is trading at a higher price-to-earnings ratio than its peers, indicating that it is currently more expensive than other companies in its industry.

Summary

Nanometrics beats its peers on 8 of the 13 factors compared.

Nanometrics Company Profile

Nanometrics Incorporated is a provider of process control metrology and inspection systems used primarily in the fabrication of semiconductors and other solid-state devices, including sensors, optoelectronic devices, high-brightness (HB) light emitting diodes (LEDs), discretes and data storages components. The Company’s automated and integrated metrology systems measure critical dimensions, device structures, topography and various thin film properties, including three-dimensional features and film thickness, as well as optical, electrical and material properties. The Company’s process control solutions are deployed throughout the fabrication process, from front-end-of-line substrate manufacturing, to production of semiconductors and other devices, to three-dimensional wafer-level packaging applications. The Company’s automated systems primarily consist of automated metrology systems that are employed in semiconductor production environments.

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