Head to Head Review: Nova (NASDAQ:NVMI) versus MKS (NASDAQ:MKSI)

MKS (NASDAQ:MKSI) and Nova (NASDAQ:NVMI) are both large-cap technology companies, but which is the better investment? We will compare the two businesses based on the strength of their risk, dividends, profitability, earnings, analyst recommendations, institutional ownership and valuation.

Risk & Volatility

MKS has a beta of 2.03, meaning that its share price is 103% more volatile than the S&P 500. Comparatively, Nova has a beta of 1.79, meaning that its share price is 79% more volatile than the S&P 500.

Earnings and Valuation

This table compares MKS and Nova”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
MKS	$4.35 billion	3.34	$295.00 million	$6.27	34.26
Nova	$880.58 million	11.59	$259.22 million	$8.08	39.75

MKS has higher revenue and earnings than Nova. MKS 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 recent ratings and price targets for MKS and Nova, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
MKS	1	2	12	1	2.81
Nova	0	4	7	0	2.64

MKS presently has a consensus target price of $375.93, suggesting a potential upside of 74.99%. Nova has a consensus target price of $499.44, suggesting a potential upside of 55.49%. Given MKS’s stronger consensus rating and higher probable upside, research analysts plainly believe MKS is more favorable than Nova.

Insider & Institutional Ownership

99.8% of MKS shares are owned by institutional investors. Comparatively, 83.0% of Nova shares are owned by institutional investors. 0.6% of MKS shares are owned by company insiders. Comparatively, 1.0% of Nova shares are owned by company 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 MKS and Nova’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
MKS	10.15%	24.72%	7.80%
Nova	28.84%	21.41%	11.95%

Summary

MKS beats Nova on 9 of the 15 factors compared between the two stocks.

About MKS

MKS Instruments, Inc. provides foundational technology solutions to semiconductor manufacturing, electronics and packaging, and specialty industrial applications in the United States, Germany, China, South Korea, and internationally. It operates through Vacuum Solutions Division (VSD), Photonics Solutions Division (PSD), and Material Solutions Division (MSD) segments. The VSD segment provides foundational technology solutions, including pressure measurement and control, flow measurement and control, gas and vapor delivery, gas composition analysis, electronic control technology, reactive gas generation and delivery, power generation and delivery, and vacuum technology. The PSD segment offers range of solutions, which include lasers, beam measurement and profiling, precision motion control, vibration isolation systems, photonics instruments, temperature sensing, opto-mechanical components, optical elements, systems for flexible PCB laser processing, and laser-based systems, as well as high density interconnect PCB and package manufacturing. The MSD segment develops, process, and manufactures technologies comprising advanced surface modification, electroless and electrolytic plating, and surface finishing for chemistry, equipment, software, and services markets, as well as high-technology applications. In addition, the company sells its products and services through direct sales, network of independent distributors, and sales representatives, as well as websites, including product catalogs. The company was incorporated in 1961 and is headquartered in Andover, Massachusetts.

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.