Nova (NASDAQ:NVMI – Get Free Report) and MKS (NASDAQ:MKSI – Get Free Report) are both large-cap technology companies, but which is the superior investment? We will compare the two businesses based on the strength of their earnings, risk, dividends, analyst recommendations, profitability, institutional ownership and valuation.
Earnings and Valuation
This table compares Nova and MKS”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 | 12.35 | $259.22 million | $8.08 | 42.36 |
| MKS | $3.93 billion | 4.26 | $295.00 million | $6.27 | 39.48 |
Profitability
This table compares Nova and MKS’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% |
| MKS | 10.15% | 24.72% | 7.80% |
Volatility & Risk
Nova has a beta of 1.79, meaning that its share price is 79% more volatile than the S&P 500. Comparatively, MKS has a beta of 2.03, meaning that its share price is 103% more volatile than the S&P 500.
Institutional and Insider Ownership
83.0% of Nova shares are held by institutional investors. Comparatively, 99.8% of MKS shares are held by institutional investors. 1.0% of Nova shares are held by insiders. Comparatively, 0.6% of MKS shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.
Analyst Recommendations
This is a breakdown of current ratings and target prices for Nova and MKS, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Nova | 0 | 4 | 7 | 0 | 2.64 |
| MKS | 1 | 2 | 12 | 1 | 2.81 |
Nova presently has a consensus target price of $499.44, indicating a potential upside of 45.91%. MKS has a consensus target price of $375.93, indicating a potential upside of 51.85%. Given MKS’s stronger consensus rating and higher possible upside, analysts clearly believe MKS is more favorable than Nova.
Summary
MKS beats Nova on 9 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 MKS
MKS Instruments, Inc. provides foundational technology solutions to semiconductor manufacturing, electronics and packaging, and specialty industrial applications in the United States, Germany, China, South Korea, and internationally. It operates through Vacuum Solutions Division (VSD), Photonics Solutions Division (PSD), and Material Solutions Division (MSD) segments. The VSD segment provides foundational technology solutions, including pressure measurement and control, flow measurement and control, gas and vapor delivery, gas composition analysis, electronic control technology, reactive gas generation and delivery, power generation and delivery, and vacuum technology. The PSD segment offers range of solutions, which include lasers, beam measurement and profiling, precision motion control, vibration isolation systems, photonics instruments, temperature sensing, opto-mechanical components, optical elements, systems for flexible PCB laser processing, and laser-based systems, as well as high density interconnect PCB and package manufacturing. The MSD segment develops, process, and manufactures technologies comprising advanced surface modification, electroless and electrolytic plating, and surface finishing for chemistry, equipment, software, and services markets, as well as high-technology applications. In addition, the company sells its products and services through direct sales, network of independent distributors, and sales representatives, as well as websites, including product catalogs. The company was incorporated in 1961 and is headquartered in Andover, Massachusetts.
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