Head-To-Head Contrast: Nova (NASDAQ:NVMI) and ASM International (OTCMKTS:ASMIY)

ASM International (OTCMKTS:ASMIY) and Nova (NASDAQ:NVMI) are both large-cap technology companies, but which is the superior business? We will compare the two businesses based on the strength of their dividends, valuation, risk, analyst recommendations, institutional ownership, earnings and profitability.

Volatility & Risk

ASM International has a beta of 1.99, meaning that its share price is 99% more volatile than the S&P 500. Comparatively, Nova has a beta of 1.76, meaning that its share price is 76% more volatile than the S&P 500.

Valuation & Earnings

This table compares ASM International and Nova”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
ASM International	$3.59 billion	11.82	$818.79 million	$25.50	34.04
Nova	$880.58 million	12.09	$259.22 million	$8.08	41.47

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

	Net Margins	Return on Equity	Return on Assets
ASM International	31.94%	22.22%	16.33%
Nova	28.84%	21.41%	11.95%

Insider & Institutional Ownership

0.0% of ASM International shares are held by institutional investors. Comparatively, 83.0% of Nova shares are held by institutional investors. 24.4% of ASM International shares are held by insiders. Comparatively, 1.0% of Nova shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Analyst Ratings

This is a breakdown of recent ratings and price targets for ASM International and Nova, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
ASM International	1	1	5	1	2.75
Nova	0	2	8	1	2.91

Nova has a consensus price target of $514.44, indicating a potential upside of 53.53%. Given Nova’s stronger consensus rating and higher probable upside, analysts clearly believe Nova is more favorable than ASM International.

Summary

ASM International beats Nova on 8 of the 14 factors compared between the two stocks.

About ASM International

ASM International NV, together with its subsidiaries, engages in the research, development, manufacture, marketing, and servicing of equipment and materials used to produce semiconductor devices in Europe, the United States, and Asia. The company’s products include wafer processing deposition systems for atomic layer deposition (ALD), epitaxy, silicon carbide, plasma enhanced chemical vapor deposition (PECVD), and vertical furnace systems, including low pressure chemical vapor deposition (LPCVD), diffusion, and oxidation products, as well as provides spare parts and support services. It also manufactures and sells equipment, which is used in wafer processing, encompassing the fabrication steps in which silicon wafers are layered with semiconductor devices. The company offers its products to semiconductor manufacturers. The company was formerly known as Advanced Semiconductor Materials International NV. ASM International NV was incorporated in 1968 and is headquartered in Almere, the Netherlands.

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.