Nova Ltd. (NVMI) vs Teradyne, Inc. (TER)

Nova Ltd. and Teradyne, Inc. are both Semiconductor Equipment & Materials companies. Teradyne, Inc. is the larger, with a market value of $33.2B against $8.9B — 3.7× the size. Teradyne, Inc. trades at the lower P/E: 24.8× against 32.4×. Teradyne, Inc. grew revenue faster over the last twelve months: 74.9% against 16.2%. Nova Ltd. has the higher net margin (28.8% vs 27.5%) and the lower return on invested capital (14.4% vs 31.2%). Across the 22 metrics below, Teradyne, Inc. leads on 16 and Nova Ltd. on 6.

Valuation

Metric NVMI TER Semiconductor Equipment & Materials median
P/E 32.44 24.76 33.70
P/S 9.55 6.79 4.22
P/B 6.79 9.20 2.94
Price to free cash flow 47.19 33.11 31.49
EV/EBITDA 32.05 19.32 22.64
EV/Sales 10.03 6.74 4.97
Earnings yield 3.08% 4.04% 2.02%
Free cash flow yield 2.12% 3.02% 2.27%

Profitability

Metric NVMI TER Semiconductor Equipment & Materials median
Gross margin 57.12% 59.32% 46.86%
Operating margin 28.97% 32.11% 12.02%
Net margin 28.84% 27.46% 10.16%
Free cash flow margin 20.24% 20.49% 6.73%
Return on equity 0.00% 42.87% 5.31%
Return on assets 13.44% 29.17% 4.10%
Return on invested capital 14.41% 31.16% 6.36%

Growth

Metric NVMI TER Semiconductor Equipment & Materials median
Revenue growth (TTM) 16.16% 74.88% 15.82%
EPS growth (last fiscal year) 38.43% 4.52% (4.56%)
Revenue growth, 5-year CAGR 26.73% 0.44% 10.11%
Net income growth, 5-year CAGR 40.17% (6.71%) 0.00%

Health

Metric NVMI TER Semiconductor Equipment & Materials median
Debt to equity 0.50 0.00 0.09
Current ratio 1.55 2.08 3.56
Net debt to EBITDA (1.16) (0.16) (0.49)

Dividend

Metric NVMI TER Semiconductor Equipment & Materials median
Dividend yield — 0.23% 0.59%
Payout ratio — 0.06 0.16

Size

Metric NVMI TER Semiconductor Equipment & Materials median
Market cap 8.92b 33.21b 3.04b

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