Comparing Nova (NASDAQ:NVMI) and Amkor Technology (NASDAQ:AMKR)

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

Analyst Recommendations

This is a breakdown of current recommendations and price targets for Nova and Amkor Technology, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Nova	0	2	9	0	2.82
Amkor Technology	0	7	4	0	2.36

Nova currently has a consensus price target of $518.22, suggesting a potential downside of 5.90%. Amkor Technology has a consensus price target of $67.38, suggesting a potential downside of 22.15%. Given Nova’s stronger consensus rating and higher probable upside, equities research analysts plainly believe Nova is more favorable than Amkor Technology.

Risk & Volatility

Nova has a beta of 1.75, suggesting that its share price is 75% more volatile than the S&P 500. Comparatively, Amkor Technology has a beta of 2.25, suggesting that its share price is 125% more volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Nova	29.21%	21.77%	12.56%
Amkor Technology	6.17%	9.88%	5.40%

Insider and Institutional Ownership

83.0% of Nova shares are held by institutional investors. Comparatively, 42.8% of Amkor Technology shares are held by institutional investors. 1.0% of Nova shares are held by insiders. Comparatively, 26.4% of Amkor Technology shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Earnings & Valuation

This table compares Nova and Amkor Technology”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Nova	$880.58 million	19.87	$259.22 million	$8.02	68.66
Amkor Technology	$6.71 billion	3.20	$373.89 million	$1.75	49.46

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

Summary

Nova beats Amkor Technology on 10 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 Amkor Technology

Amkor Technology, Inc. provides outsourced semiconductor packaging and test services in the United States, Japan, Europe, the Middle East, Africa, and the Asia Pacific. It offers turnkey packaging and test services, including semiconductor wafer bump, wafer probe, wafer back-grind, package design, packaging, system-level and final test, and drop shipment services; flip chip scale package products for smartphones, tablets, and other mobile consumer electronic devices; flip chip stacked chip scale packages that are used to stack memory digital baseband, and as applications processors in mobile devices; flip-chip ball grid array packages for various networking, storage, computing, automotive, and consumer applications; and memory products for system memory or platform data storage. The company also provides wafer-level CSP packages for power management, transceivers, sensors, wireless charging, codecs, radar, and specialty silicon; wafer-level fan-out packages used in power management, transceivers, radar, and specialty silicon; silicon wafer integrated fan-out technology that replaces a laminate substrate with a thinner structure; leadframe packages for electronic devices and mixed-signal applications; and substrate-based wirebond packages used to connect a die to a substrate. In addition, it offers micro-electro-mechanical systems packages that are miniaturized mechanical and electromechanical devices; and advanced system-in-package modules used in radio frequency and front end modules, basebands, connectivity, fingerprint sensors, display and touch screen drivers, sensors and MEMS, and NAND memory and solid-state drives. Further, the company provides wafer, package, and system level test services, as well as burn-in test and test development services. It serves integrated device manufacturers, fabless semiconductor companies, original equipment manufacturers, and contract foundries. The company was founded in 1968 and is headquartered in Tempe, Arizona.