Nova (NASDAQ:NVMI – Get Free Report) and Valens Semiconductor (NYSE:VLN – Get Free Report) are both technology companies, but which is the superior business? We will compare the two companies based on the strength of their profitability, valuation, earnings, institutional ownership, analyst recommendations, risk and dividends.
Insider & Institutional Ownership
83.0% of Nova shares are held by institutional investors. Comparatively, 33.9% of Valens Semiconductor shares are held by institutional investors. 1.0% of Nova shares are held by company insiders. Comparatively, 58.9% of Valens Semiconductor shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.
Volatility and Risk
Nova has a beta of 1.79, indicating that its stock price is 79% more volatile than the S&P 500. Comparatively, Valens Semiconductor has a beta of 1.3, indicating that its stock price is 30% more volatile than the S&P 500.
Profitability
This table compares Nova and Valens Semiconductor’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Nova | 28.84% | 21.41% | 11.95% |
| Valens Semiconductor | -45.23% | -30.58% | -23.97% |
Earnings & Valuation
This table compares Nova and Valens Semiconductor”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Nova | $880.58 million | 11.24 | $259.22 million | $8.08 | 38.53 |
| Valens Semiconductor | $70.62 million | 2.38 | -$31.58 million | ($0.32) | -4.86 |
Nova has higher revenue and earnings than Valens Semiconductor. Valens Semiconductor 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 breakdown of current ratings and target prices for Nova and Valens Semiconductor, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Nova | 0 | 4 | 7 | 0 | 2.64 |
| Valens Semiconductor | 1 | 0 | 1 | 0 | 2.00 |
Nova currently has a consensus target price of $499.44, indicating a potential upside of 60.41%. Valens Semiconductor has a consensus target price of $4.00, indicating a potential upside of 157.23%. Given Valens Semiconductor’s higher probable upside, analysts plainly believe Valens Semiconductor is more favorable than Nova.
Summary
Nova beats Valens Semiconductor on 12 of the 14 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 Valens Semiconductor
Valens Semiconductor Ltd. engages in the provision of semiconductor products for the audio-video and automotive industries. The company offers HDBaseT technology, which enables the simultaneous delivery of ultra-high-definition digital video and audio, Ethernet, USB, control signals, and power through a single long-reach cable. It also provides audio-video solutions for the enterprise, education, industrial, digital signage, industrial, and medical markets. In addition, it offers automotive chipsets that support advanced driver-assistance systems, automotive data solutions, infotainment, telematics, and backbone connectivity. The company’s product series include VS100, VS2000, VS3000, VS6000, VS7000, Valens USB and power extender, Valens VS6320, USB 3.2 Gen1 extension chipset, VA6000, and VA7000. It has a collaboration with iCatch Technology to develop a 360-degree multi-camera videoconferencing solution. The company operates in Israel, China, Hong Kong, the United States, Japan, Germany, Hungary, and internationally. Valens Semiconductor Ltd. is headquartered in Hod Hasharon, Israel.
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