Head to Head Survey: Nova (NASDAQ:NVMI) & TranSwitch (OTCMKTS:TXCCQ)

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Nova	29.10%	24.36%	16.66%
TranSwitch	N/A	N/A	N/A

Analyst Ratings

This is a summary of recent ratings and recommmendations for Nova and TranSwitch, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Nova	0	2	5	0	2.71
TranSwitch	0	0	0	0	0.00

Nova presently has a consensus price target of $307.00, indicating a potential upside of 5.75%. Given Nova’s stronger consensus rating and higher probable upside, equities analysts plainly believe Nova is more favorable than TranSwitch.

Institutional and Insider Ownership

83.0% of Nova shares are owned by institutional investors. 1.0% of Nova shares are owned by insiders. Comparatively, 6.3% of TranSwitch 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.

Volatility & Risk

Nova has a beta of 1.79, suggesting that its share price is 79% more volatile than the S&P 500. Comparatively, TranSwitch has a beta of 19.71, suggesting that its share price is 1,871% more volatile than the S&P 500.

Valuation & Earnings

This table compares Nova and TranSwitch”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Nova	$852.72 million	10.01	$183.76 million	$7.65	37.95
TranSwitch	N/A	N/A	N/A	N/A	N/A

Nova has higher revenue and earnings than TranSwitch.

Summary

Nova beats TranSwitch on 8 of the 10 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 TranSwitch

TranSwitch Corporation, together with its subsidiaries, designs, develops, and supplies integrated circuit and intellectual property solutions that provide functionality for voice, data, and video communications equipment for the customer premises and network infrastructure markets. The company provides integrated multi-core network processor system-on-a-chip (SoC) solutions for fixed, 3G and 4G mobile, VoIP, and multimedia applications. It offers converged network infrastructure products, including infrastructure VoIP processors for wire-line and wireless carrier equipment; access VoIP processors; and EoS/EoPDH mappers and framers for carriers to transport data traffic over SONET, SDH, and PDH networks. The company also offers broadband customer premises equipment, such as connectivity solutions comprising HDMI, DisplayPort, MHL, HDP, Ethernet IP cores, and MHDP transceivers for consumer electronics, home network equipment, and industrial and automotive applications; and multi-service SoCs for customer premises equipment that support telephone voice, fax, and routing functionality over broadband access networks. TranSwitch Corporation sells its products to public network system original equipment manufacturers (OEMs), WAN and LAN equipment OEMs, Internet-oriented OEMs, and communications test and performance measurement equipment OEMs; and government, universities, and private laboratories. The company offers its products directly in North America, Taiwan, China, Japan, Korea, and Europe, as well as through a network of distributors in North America, Asia, and Europe. TranSwitch Corporation was founded in 1988 and is headquartered in Shelton, Connecticut. On November 21, 2013, TranSwitch Corporation filed a voluntary petition for liquidation under Chapter 7 in the U.S. Bankruptcy Court for the District of Connecticut.