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 $25.6B against $13.9B — 1.8× the size. Qnity Electronics, Inc. trades at the lower P/E: 44.5× against 107×. Onto Innovation Inc. has the higher net margin (11.8% vs 11.3%) and the lower return on invested capital (5.56% vs 6.10%). Across the 19 metrics below, Qnity Electronics, Inc. leads on 13 and Onto Innovation Inc. on 6.

Valuation

Metric ONTO Q Semiconductor Equipment & Materials median
P/E 106.93 44.54 54.39
P/S 12.69 5.01 6.08
P/B 7.39 3.46 4.89
Price to free cash flow 56.30 31.44 60.92
EV/EBITDA 63.89 20.55 39.95
EV/Sales 12.32 5.60 6.36
Earnings yield 0.94% 2.25% 1.14%
Free cash flow yield 1.78% 3.18% 1.28%

Profitability

Metric ONTO Q Semiconductor Equipment & Materials median
Gross margin 50.36% 46.22% 43.95%
Operating margin 12.02% 19.87% 10.32%
Net margin 11.84% 11.25% 7.45%
Free cash flow margin 22.54% 15.95% 6.77%
Return on equity 6.82% 6.36% 4.78%
Return on assets 4.54% 8.18% 3.62%
Return on invested capital 5.56% 6.10% 6.10%

Growth

Metric ONTO Q Semiconductor Equipment & Materials median
Revenue growth (TTM) 8.08% — 14.60%
EPS growth (last fiscal year) (31.53%) (4.56%) —
Revenue growth, 5-year CAGR 12.55% — 8.85%
Net income growth, 5-year CAGR 34.54% — 0.00%

Health

Metric ONTO Q Semiconductor Equipment & Materials median
Debt to equity 0.77 0.53 0.09
Current ratio 9.73 2.01 3.66
Net debt to EBITDA (3.39) 2.31 (0.49)

Dividend

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

Size

Metric ONTO Q Semiconductor Equipment & Materials median
Market cap 13.94b 25.60b 4.63b

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