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 $62.4B against $11.7B — 5.3× the size. Nova Ltd. trades at the lower P/E: 42.4× against 54.3×. Teradyne, Inc. grew revenue faster over the last twelve months: 57.9% against 16.2%. Nova Ltd. has the higher net margin (28.8% vs 25.8%) and the lower return on invested capital (14.4% vs 27.0%). Across the 22 metrics below, Nova Ltd. leads on 14 and Teradyne, Inc. on 8.

Valuation

Metric NVMI TER Semiconductor Equipment & Materials median
P/E 42.42 54.35 54.39
P/S 12.49 13.96 6.08
P/B 8.88 17.95 4.89
Price to free cash flow 61.71 77.92 60.92
EV/EBITDA 41.45 42.01 39.95
EV/Sales 12.96 13.94 6.36
Earnings yield 2.36% 1.84% 1.14%
Free cash flow yield 1.62% 1.28% 1.28%

Profitability

Metric NVMI TER Semiconductor Equipment & Materials median
Gross margin 57.12% 59.24% 43.95%
Operating margin 28.97% 30.23% 10.32%
Net margin 28.84% 25.77% 7.45%
Free cash flow margin 20.24% 17.92% 6.77%
Return on equity 0.00% 36.45% 4.78%
Return on assets 13.44% 26.48% 3.62%
Return on invested capital 14.41% 27.04% 6.10%

Growth

Metric NVMI TER Semiconductor Equipment & Materials median
Revenue growth (TTM) 16.16% 57.87% 14.60%
EPS growth (last fiscal year) 38.43% 4.52% —
Revenue growth, 5-year CAGR 26.73% 0.44% 8.85%
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 2.12 3.66
Net debt to EBITDA (1.16) (0.16) (0.49)

Dividend

Metric NVMI TER Semiconductor Equipment & Materials median
Dividend yield — 0.47% 0.85%
Payout ratio 0.00 0.13 0.00

Size

Metric NVMI TER Semiconductor Equipment & Materials median
Market cap 11.67b 62.38b 4.63b

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