Nova Ltd. (NVMI) vs Qnity Electronics, Inc. (Q)

Nova Ltd. and Qnity Electronics, Inc. are both Semiconductor Equipment & Materials companies. Qnity Electronics, Inc. is the larger, with a market value of $25.6B against $11.7B — 2.2× the size. Nova Ltd. trades at the lower P/E: 42.4× against 44.5×. Nova Ltd. has the higher net margin (28.8% vs 11.3%) and the higher return on invested capital (14.4% vs 6.10%). Across the 19 metrics below, Nova Ltd. leads on 11 and Qnity Electronics, Inc. on 8.

Valuation

Metric NVMI Q Semiconductor Equipment & Materials median
P/E 42.42 44.54 54.39
P/S 12.49 5.01 6.08
P/B 8.88 3.46 4.89
Price to free cash flow 61.71 31.44 60.92
EV/EBITDA 41.45 20.55 39.95
EV/Sales 12.96 5.60 6.36
Earnings yield 2.36% 2.25% 1.14%
Free cash flow yield 1.62% 3.18% 1.28%

Profitability

Metric NVMI Q Semiconductor Equipment & Materials median
Gross margin 57.12% 46.22% 43.95%
Operating margin 28.97% 19.87% 10.32%
Net margin 28.84% 11.25% 7.45%
Free cash flow margin 20.24% 15.95% 6.77%
Return on equity 0.00% 6.36% 4.78%
Return on assets 13.44% 8.18% 3.62%
Return on invested capital 14.41% 6.10% 6.10%

Growth

Metric NVMI Q Semiconductor Equipment & Materials median
Revenue growth (TTM) 16.16% — 14.60%
EPS growth (last fiscal year) 38.43% (4.56%) —
Revenue growth, 5-year CAGR 26.73% — 8.85%
Net income growth, 5-year CAGR 40.17% — 0.00%

Health

Metric NVMI Q Semiconductor Equipment & Materials median
Debt to equity 0.50 0.53 0.09
Current ratio 1.55 2.01 3.66
Net debt to EBITDA (1.16) 2.31 (0.49)

Dividend

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

Size

Metric NVMI Q Semiconductor Equipment & Materials median
Market cap 11.67b 25.60b 4.63b

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