Nova Measuring Instruments (NASDAQ: NVMI) and KLA-Tencor (NASDAQ:KLAC) are both computer and technology companies, but which is the better stock? We will compare the two companies based on the strength of their risk, dividends, institutional ownership, earnings, analyst recommendations, profitability and valuation.
This table compares Nova Measuring Instruments and KLA-Tencor’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Nova Measuring Instruments||20.93%||25.05%||19.99%|
44.0% of Nova Measuring Instruments shares are owned by institutional investors. Comparatively, 91.7% of KLA-Tencor shares are owned by institutional investors. 1.0% of Nova Measuring Instruments shares are owned by insiders. Comparatively, 0.2% of KLA-Tencor shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.
This is a summary of current ratings for Nova Measuring Instruments and KLA-Tencor, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Nova Measuring Instruments||0||0||4||0||3.00|
Nova Measuring Instruments currently has a consensus price target of $33.50, indicating a potential upside of 29.09%. KLA-Tencor has a consensus price target of $122.08, indicating a potential upside of 17.30%. Given Nova Measuring Instruments’ stronger consensus rating and higher probable upside, research analysts plainly believe Nova Measuring Instruments is more favorable than KLA-Tencor.
Risk and Volatility
Nova Measuring Instruments has a beta of 0.77, suggesting that its share price is 23% less volatile than the S&P 500. Comparatively, KLA-Tencor has a beta of 1.49, suggesting that its share price is 49% more volatile than the S&P 500.
KLA-Tencor pays an annual dividend of $2.36 per share and has a dividend yield of 2.3%. Nova Measuring Instruments does not pay a dividend. KLA-Tencor pays out 39.7% of its earnings in the form of a dividend.
Earnings & Valuation
This table compares Nova Measuring Instruments and KLA-Tencor’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Nova Measuring Instruments||$221.99 million||3.26||$46.45 million||$1.85||14.03|
|KLA-Tencor||$3.48 billion||4.66||$926.07 million||$5.94||17.52|
KLA-Tencor has higher revenue and earnings than Nova Measuring Instruments. Nova Measuring Instruments is trading at a lower price-to-earnings ratio than KLA-Tencor, indicating that it is currently the more affordable of the two stocks.
KLA-Tencor beats Nova Measuring Instruments on 11 of the 16 factors compared between the two stocks.
About Nova Measuring Instruments
Nova Measuring Instruments Ltd. designs, develops, produces, and sells process control systems used in the manufacture of semiconductors in Israel. The company offers in-line optical and x-ray stand-alone metrology systems, as well as integrated optical metrology systems that attach directly to wafer fabrication process equipment. Its products include thin film and optical CD process control solutions for dimensional, films, and material metrology measurements for process control across various semiconductor manufacturing process steps, including lithography, etch, chemical mechanical polishing, and deposition. The company serves various sectors of the integrated circuit manufacturing industry, including logic, ASIC, foundries, and memory manufactures, as well as end users and process equipment manufacturers worldwide. Nova Measuring Instruments Ltd. was founded in 1993 and is headquartered in Ness Ziona, Israel.
KLA-Tencor Corporation designs, manufactures, and markets process control and yield management solutions for the semiconductor and related nano-electronics industries worldwide. It offers chip manufacturing products, such as front-end defect inspection tools, defect review systems, advanced packaging process control systems, metrology solutions, in-situ process monitoring products, and lithography software; wafer manufacturing products comprising wafer manufacturing products comprising surface and defect inspection, wafer geometry and nanotopography metrology, and data management; and reticle manufacturing products, such as defect inspection and pattern placement metrology products. The company also provides light emitting diode (LED), power device, and compound semiconductor manufacturing products consisting of patterned wafer inspection, defect inspection, surface metrology, and data management products; thin-film head metrology and inspection, virtual lithography, in-situ process monitoring, transparent and metal substrate inspection, and data management products for data storage media/head manufacturing; and stylus and optical profiling, and optical inspection products for microelectromechanical systems manufacturing, as well as products for general purpose/lab applications. It offers its products and services for bare wafer, IC, lithography reticle, and disk manufacturers. KLA-Tencor Corporation was founded in 1975 and is headquartered in Milpitas, California.
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