Nova Ltd. (NVMI) vs Onto Innovation Inc. (ONTO)

Nova Ltd. and Onto Innovation Inc. are both Semiconductor Equipment & Materials companies. Onto Innovation Inc. is the larger, with a market value of $13.9B against $11.7B — 1.2× the size. Nova Ltd. trades at the lower P/E: 42.4× against 107×. Nova Ltd. grew revenue faster over the last twelve months: 16.2% against 8.08%. Nova Ltd. has the higher net margin (28.8% vs 11.8%) and the higher return on invested capital (14.4% vs 5.56%). Across the 22 metrics below, Nova Ltd. leads on 14 and Onto Innovation Inc. on 8.

Valuation

Metric NVMI ONTO Semiconductor Equipment & Materials median
P/E 42.42 106.93 54.39
P/S 12.49 12.69 6.08
P/B 8.88 7.39 4.89
Price to free cash flow 61.71 56.30 60.92
EV/EBITDA 41.45 63.89 39.95
EV/Sales 12.96 12.32 6.36
Earnings yield 2.36% 0.94% 1.14%
Free cash flow yield 1.62% 1.78% 1.28%

Profitability

Metric NVMI ONTO Semiconductor Equipment & Materials median
Gross margin 57.12% 50.36% 43.95%
Operating margin 28.97% 12.02% 10.32%
Net margin 28.84% 11.84% 7.45%
Free cash flow margin 20.24% 22.54% 6.77%
Return on equity 0.00% 6.82% 4.78%
Return on assets 13.44% 4.54% 3.62%
Return on invested capital 14.41% 5.56% 6.10%

Growth

Metric NVMI ONTO Semiconductor Equipment & Materials median
Revenue growth (TTM) 16.16% 8.08% 14.60%
EPS growth (last fiscal year) 38.43% (31.53%) —
Revenue growth, 5-year CAGR 26.73% 12.55% 8.85%
Net income growth, 5-year CAGR 40.17% 34.54% 0.00%

Health

Metric NVMI ONTO Semiconductor Equipment & Materials median
Debt to equity 0.50 0.77 0.09
Current ratio 1.55 9.73 3.66
Net debt to EBITDA (1.16) (3.39) (0.49)

Dividend

Metric NVMI ONTO Semiconductor Equipment & Materials median
Dividend yield — — 0.85%
Payout ratio 0.00 0.00 0.00

Size

Metric NVMI ONTO Semiconductor Equipment & Materials median
Market cap 11.67b 13.94b 4.63b

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