Nova (NASDAQ:NVMI) vs. indie Semiconductor (NASDAQ:INDI) Critical Contrast

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

Valuation and Earnings

This table compares Nova and indie Semiconductor”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Nova	$880.58 million	14.84	$259.22 million	$8.01	51.35
indie Semiconductor	$217.39 million	2.63	-$143.97 million	($0.73)	-3.56

Nova has higher revenue and earnings than indie Semiconductor. indie Semiconductor 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 indie Semiconductor’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Nova	29.44%	22.90%	13.65%
indie Semiconductor	-66.23%	-29.33%	-13.71%

Institutional and Insider Ownership

83.0% of Nova shares are held by institutional investors. Comparatively, 67.7% of indie Semiconductor shares are held by institutional investors. 1.0% of Nova shares are held by company insiders. Comparatively, 5.6% of indie Semiconductor shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for Nova and indie Semiconductor, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Nova	0	1	7	1	3.00
indie Semiconductor	1	1	5	0	2.57

Nova presently has a consensus price target of $439.00, suggesting a potential upside of 6.73%. indie Semiconductor has a consensus price target of $6.45, suggesting a potential upside of 148.08%. Given indie Semiconductor’s higher possible upside, analysts clearly believe indie Semiconductor is more favorable than Nova.

Volatility & Risk

Nova has a beta of 1.83, suggesting that its share price is 83% more volatile than the S&P 500. Comparatively, indie Semiconductor has a beta of 2.55, suggesting that its share price is 155% more volatile than the S&P 500.

Summary

Nova beats indie Semiconductor on 12 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 indie Semiconductor

indie Semiconductor, Inc. provides automotive semiconductors and software solutions for advanced driver assistance systems, autonomous vehicle, in-cabin, connected car, and electrification applications in the United States, South America, rest of North America, Greater China, South Korea, rest of the Asia Pacific, and Europe. It offers ultrasonic sensors for parking assist and systems; radar sensors for audio assistance and reverse information; front cameras for vehicle detection, collision avoidance, and sign reading; and side/inside cameras for blind spot and lane change assist, and driver behavior monitoring. The company also provides LiDAR for distance, speed, and obstacle detection, collision avoidance, and emergency brake system; and long range RADAR for audio assistance, obstacle detection, and ACC stop and go. In addition, it designs and manufactures photonic components on various technology platforms, including fiber Bragg gratings, low-noise lasers, athermal and tunable packaging, photonic integration, and low-noise and high-speed electronics. The company was founded in 2007 and is headquartered in Aliso Viejo, California.