Cirrus Logic (NASDAQ:CRUS) versus Nova (NASDAQ:NVMI) Head-To-Head Comparison

Nova (NASDAQ:NVMI) and Cirrus Logic (NASDAQ:CRUS) are both mid-cap computer and technology companies, but which is the superior investment? We will contrast the two companies based on the strength of their analyst recommendations, dividends, earnings, profitability, valuation, institutional ownership and risk.

Risk and Volatility

Nova has a beta of 1.84, meaning that its share price is 84% more volatile than the S&P 500. Comparatively, Cirrus Logic has a beta of 1.08, meaning that its share price is 8% more volatile than the S&P 500.

Insider & Institutional Ownership

83.0% of Nova shares are owned by institutional investors. Comparatively, 88.0% of Cirrus Logic shares are owned by institutional investors. 1.0% of Nova shares are owned by insiders. Comparatively, 1.2% of Cirrus Logic shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Profitability

This table compares Nova and Cirrus Logic’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Nova	28.73%	24.09%	15.03%
Cirrus Logic	19.48%	19.59%	16.40%

Valuation & Earnings

This table compares Nova and Cirrus Logic”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Nova	$672.40 million	13.81	$183.76 million	$7.65	41.29
Cirrus Logic	$1.90 billion	3.30	$331.51 million	$7.04	17.40

Cirrus Logic has higher revenue and earnings than Nova. Cirrus Logic is trading at a lower price-to-earnings ratio than Nova, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a summary of current ratings for Nova and Cirrus Logic, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Nova	0	3	5	0	2.63
Cirrus Logic	0	2	4	1	2.86

Nova presently has a consensus target price of $311.67, suggesting a potential downside of 1.32%. Cirrus Logic has a consensus target price of $141.67, suggesting a potential upside of 15.63%. Given Cirrus Logic’s stronger consensus rating and higher possible upside, analysts plainly believe Cirrus Logic is more favorable than Nova.

Summary

Cirrus Logic beats Nova on 8 of the 15 factors compared between the two stocks.

About Nova

Nova Ltd. designs, develops, produces, and sells process control systems used in the manufacture of semiconductors in Israel, Taiwan, the United States, China, Korea, and internationally. Its product portfolio includes a set of metrology platforms for dimensional, films, and materials and chemical metrology measurements for process control for various semiconductor manufacturing process steps, including lithography, etch, chemical mechanical planarization, deposition, electrochemical plating, and advanced packaging. The company serves various sectors of the integrated circuit manufacturing industry, including logic, foundries, and memory manufacturers, as well as process equipment manufacturers. Nova Ltd. was formerly known as Nova Measuring Instruments Ltd. and changed its name to Nova Ltd. in July 2021. Nova Ltd. was incorporated in 1993 and is headquartered in Rehovot, Israel.

About Cirrus Logic

Cirrus Logic, Inc., a fabless semiconductor company, develops low-power high-precision mixed-signal processing solutions in China, the United States, and internationally. The company offers audio products, including amplifiers; codecs components that integrate analog-to-digital converters (ADCs) and digital-to-analog converters (DACs) into a single integrated circuit (IC); smart codecs, a codec with integrated digital signal processing; standalone digital signal processors; and SoundClear technology, which consists of a portfolio of tools, software, and algorithms that helps to enhance user experience with features, such as louder, high-fidelity sound, audio playback, voice capture, and hearing augmentation for use in smartphones, tablets, laptops, AR/VR headsets, home theater systems, automotive entertainment systems, and professional audio systems. It also provides high-performance mixed-signal products comprising camera controllers, haptic and sensing solutions, and battery and power ICs for use in smartphones, as well as legacy industrial and energy applications, such as digital utility meters, power supplies, energy control, energy measurement, and energy exploration. The company markets and sells its products through direct sales force, external sales representatives, and distributors. Cirrus Logic, Inc. was incorporated in 1984 and is headquartered in Austin, Texas.