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 $25.0B against $10.5B — 2.4× the size. Nova Ltd. trades at the lower P/E: 37.0× against 41.2×. 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 37.00 41.20 45.03
P/S 10.90 4.64 4.64
P/B 7.75 3.20 3.22
Price to free cash flow 53.83 29.09 48.18
EV/EBITDA 36.35 19.18 33.11
EV/Sales 11.37 5.23 5.52
Earnings yield 2.70% 2.43% 1.41%
Free cash flow yield 1.86% 3.44% 1.67%

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%) (4.56%)
Revenue growth, 5-year CAGR 26.73% — 10.11%
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 — — 0.42%
Payout ratio — — 0.19

Size

Metric NVMI Q Semiconductor Equipment & Materials median
Market cap 10.48b 25.02b 3.80b

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