Financial Contrast: First Solar (NASDAQ:FSLR) versus Nova (NASDAQ:NVMI)

First Solar (NASDAQ:FSLR) and Nova (NASDAQ:NVMI) are both large-cap technology companies, but which is the better stock? We will compare the two companies based on the strength of their valuation, earnings, institutional ownership, profitability, dividends, risk and analyst recommendations.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
First Solar	32.47%	18.02%	13.05%
Nova	28.84%	21.41%	11.95%

Earnings & Valuation

This table compares First Solar and Nova”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
First Solar	$5.38 billion	3.49	$1.53 billion	$16.22	10.78
Nova	$880.58 million	11.95	$259.22 million	$8.08	40.99

First Solar has higher revenue and earnings than Nova. First Solar is trading at a lower price-to-earnings ratio than Nova, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
First Solar	2	10	23	2	2.68
Nova	0	4	7	0	2.64

First Solar presently has a consensus price target of $265.73, indicating a potential upside of 52.00%. Nova has a consensus price target of $499.44, indicating a potential upside of 50.79%. Given First Solar’s stronger consensus rating and higher probable upside, analysts plainly believe First Solar is more favorable than Nova.

Volatility and Risk

First Solar has a beta of 1.8, indicating that its share price is 80% more volatile than the S&P 500. Comparatively, Nova has a beta of 1.79, indicating that its share price is 79% more volatile than the S&P 500.

Insider and Institutional Ownership

92.1% of First Solar shares are owned by institutional investors. Comparatively, 83.0% of Nova shares are owned by institutional investors. 0.4% of First Solar shares are owned by company insiders. Comparatively, 1.0% of Nova shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Summary

First Solar beats Nova on 11 of the 15 factors compared between the two stocks.

About First Solar

First Solar, Inc., a solar technology company, provides photovoltaic (PV) solar energy solutions in the United States, France, Japan, Chile, and internationally. The company manufactures and sells PV solar modules with a thin film semiconductor technology that provides a lower-carbon alternative to conventional crystalline silicon PV solar modules. It designs, manufactures, and sells cadmium telluride solar modules that converts sunlight into electricity. The company's residual business operations include project development activities, operations and maintenance services, and the sale of PV solar power systems to third-party customers. It serves developers and operators of systems, utilities, independent power producers, commercial and industrial companies, and other system owners. The company was formerly known as First Solar Holdings, Inc. and changed its name to First Solar, Inc. in 2006. First Solar, Inc. was founded in 1999 and is headquartered in Tempe, Arizona.

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.