Nova (NASDAQ:NVMI – Get Free Report) and SUMCO (OTCMKTS:SUOPY – Get Free Report) are both technology companies, but which is the superior business? We will compare the two businesses based on the strength of their risk, valuation, profitability, analyst recommendations, earnings, institutional ownership and dividends.
Institutional and Insider Ownership
83.0% of Nova shares are owned by institutional investors. Comparatively, 0.0% of SUMCO shares are owned by institutional investors. 1.0% of Nova shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.
Analyst Ratings
This is a summary of recent ratings and recommmendations 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 |
Earnings and Valuation
This table compares Nova and SUMCO”s 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.
Volatility and Risk
Nova has a beta of 1.79, indicating that its stock price is 79% more volatile than the S&P 500. Comparatively, SUMCO has a beta of 1.55, indicating that its stock price is 55% more volatile than the S&P 500.
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% |
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.
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