Onto Innovation Inc. (ONTO) vs Qnity Electronics, Inc. (Q)

Onto Innovation Inc. and Qnity Electronics, Inc. are both Semiconductor Equipment & Materials companies. Qnity Electronics, Inc. is the larger, with a market value of $23.0B against $7.7B — 3.0× the size. Qnity Electronics, Inc. trades at the lower P/E: 40.6× against 58.7×. Qnity Electronics, Inc. grew revenue faster over the last twelve months: 16.5% against 8.08%. Onto Innovation Inc. has the higher net margin (11.8% vs 10.2%) and the lower return on invested capital (5.56% vs 6.36%). Across the 20 metrics below, Qnity Electronics, Inc. leads on 13 and Onto Innovation Inc. on 7.

Valuation

Metric ONTO Q Semiconductor Equipment & Materials median
P/E 58.67 40.63 33.70
P/S 6.96 4.22 4.22
P/B 4.06 2.94 2.94
Price to free cash flow 30.89 29.62 31.49
EV/EBITDA 34.20 18.37 22.64
EV/Sales 6.60 4.75 4.97
Earnings yield 1.70% 2.46% 2.02%
Free cash flow yield 3.24% 3.38% 2.27%

Profitability

Metric ONTO Q Semiconductor Equipment & Materials median
Gross margin 50.36% 46.92% 46.86%
Operating margin 12.02% 20.00% 12.02%
Net margin 11.84% 10.16% 10.16%
Free cash flow margin 22.54% 14.26% 6.73%
Return on equity 6.82% 6.46% 5.31%
Return on assets 4.54% 4.10% 4.10%
Return on invested capital 5.56% 6.36% 6.36%

Growth

Metric ONTO Q Semiconductor Equipment & Materials median
Revenue growth (TTM) 8.08% 16.51% 15.82%
EPS growth (last fiscal year) (31.53%) (4.56%) (4.56%)
Revenue growth, 5-year CAGR 12.55% — 10.11%
Net income growth, 5-year CAGR 34.54% — 0.00%

Health

Metric ONTO Q Semiconductor Equipment & Materials median
Debt to equity 0.77 0.51 0.09
Current ratio 9.73 2.09 3.56
Net debt to EBITDA (3.39) 2.31 (0.49)

Dividend

Metric ONTO Q Semiconductor Equipment & Materials median
Dividend yield — — 0.59%
Payout ratio — — 0.16

Size

Metric ONTO Q Semiconductor Equipment & Materials median
Market cap 7.66b 23.02b 3.04b

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