Analyzing Nova (NASDAQ:NVMI) & Navitas Semiconductor (NASDAQ:NVTS)

Navitas Semiconductor (NASDAQ:NVTS) and Nova (NASDAQ:NVMI) are both technology companies, but which is the superior stock? We will contrast the two companies based on the strength of their profitability, analyst recommendations, earnings, dividends, risk, institutional ownership and valuation.

Insider and Institutional Ownership

46.1% of Navitas Semiconductor shares are owned by institutional investors. Comparatively, 83.0% of Nova shares are owned by institutional investors. 12.4% of Navitas Semiconductor shares are owned by insiders. Comparatively, 1.0% of Nova shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Valuation and Earnings

This table compares Navitas Semiconductor and Nova”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Navitas Semiconductor	$45.92 million	66.01	-$116.95 million	($1.33)	-8.73
Nova	$880.58 million	13.90	$259.22 million	$8.08	47.67

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

Profitability

This table compares Navitas Semiconductor and Nova’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Navitas Semiconductor	-856.85%	-13.13%	-11.91%
Nova	28.84%	21.41%	11.95%

Analyst Recommendations

This is a breakdown of recent recommendations for Navitas Semiconductor and Nova, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Navitas Semiconductor	2	2	2	0	2.00
Nova	0	2	8	1	2.91

Navitas Semiconductor presently has a consensus price target of $15.92, indicating a potential upside of 37.12%. Nova has a consensus price target of $514.44, indicating a potential upside of 33.55%. Given Navitas Semiconductor’s higher probable upside, research analysts clearly believe Navitas Semiconductor is more favorable than Nova.

Risk and Volatility

Navitas Semiconductor has a beta of 3.88, indicating that its share price is 288% more volatile than the S&P 500. Comparatively, Nova has a beta of 1.76, indicating that its share price is 76% more volatile than the S&P 500.

Summary

Nova beats Navitas Semiconductor on 11 of the 15 factors compared between the two stocks.

About Navitas Semiconductor

Navitas Semiconductor Corporation designs, develops, and markets gallium nitride power integrated circuits, silicon carbide, associated high-speed silicon system controllers, and digital isolators used in power conversion and charging. The company’s products are used in mobile, consumer, data center, solar, electric vehicle, industrial motor drive, smart grid, and transportation applications. It operates in the United States, Europe, China, rest of Asia, and internationally. The company was founded in 2013 and is based in Torrance, California.

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.