Comprehensive Stock Comparison
Compare Onto Innovation Inc. (ONTO) vs Nova Ltd. (NVMI) Stock
Analyze side-by-side fundamentals, valuation, growth, and profitability to decide which stock is the better buy.
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Quick Verdict
| Category | Winner | Why |
|---|---|---|
| Growth | NVMI | 29.8% revenue growth vs ONTO's 21.0% |
| Value | ONTO | PEG 0.34 vs 1.18 |
| Quality / Margins | NVMI | 29.4% net margin vs ONTO's 17.5% |
| Stability / Safety | NVMI | Beta 1.83 vs ONTO's 2.24 |
| Dividends | Tie | Neither pays a meaningful dividend |
| Momentum (1Y) | NVMI | +83.5% vs ONTO's +48.2% |
| Efficiency (ROA) | NVMI | 11.0% ROA vs ONTO's 8.0%, ROIC 14.9% vs 8.6% |
Who Each Stock Is For
Income & stability
Growth exposure
Long-term compounding (10Y)
Sleep-well-at-night portfolio
Valuation efficiency (growth/$)
Defensive / Recession hedge
Business Model
What each company does and how it makes money
Onto Innovation is a semiconductor equipment company that makes process control tools for defect inspection, optical metrology, and lithography systems used in chip manufacturing. It generates revenue primarily from selling these capital equipment systems — along with software licenses and spare parts — to semiconductor manufacturers and advanced packaging facilities. The company's competitive advantage lies in its integrated portfolio of inspection, metrology, and lithography technologies that help chipmakers improve yields and process control across multiple manufacturing steps.
Nova Ltd. is a semiconductor process control systems company that designs and sells metrology equipment used to measure and monitor chip manufacturing processes. It generates revenue primarily from selling its dimensional, films, and materials metrology platforms—which account for the vast majority of sales—to logic, foundry, and memory chip manufacturers worldwide. The company's competitive advantage lies in its deep expertise in complex measurement technologies and strong customer relationships with leading semiconductor manufacturers who rely on its precision tools for advanced process control.
Revenue Breakdown by Segment
How each company's revenue is distributed across its business units
Financial Metrics Comparison
Side-by-side fundamentals across 2 stocks. BestLagging
Financial Scorecard
NVMI leads in 3 of 6 categories (Financial Metrics, Profitability & Efficiency). ONTO leads in 1 (Valuation Metrics). 1 tied.
Financial Metrics (TTM)
ONTO and NVMI operate at a comparable scale, with $1.0B and $881M in trailing revenue. NVMI is the more profitable business, keeping 29.4% of every revenue dollar as net income compared to ONTO's 17.5%. On growth, NVMI holds the edge at +14.3% YoY revenue growth, suggesting stronger near-term business momentum.
| Metric | ONTOOnto Innovation I… | NVMINova Ltd. |
|---|---|---|
| RevenueTrailing 12 months | $1.0B | $881M |
| EBITDAEarnings before interest/tax | $215M | $276M |
| Net IncomeAfter-tax profit | $175M | $259M |
| Free Cash FlowCash after capex | $261M | $218M |
| Gross MarginGross profit ÷ Revenue | +50.7% | +57.4% |
| Operating MarginEBIT ÷ Revenue | +16.1% | +28.8% |
| Net MarginNet income ÷ Revenue | +17.5% | +29.4% |
| FCF MarginFCF ÷ Revenue | +26.1% | +24.7% |
| Rev. Growth (YoY)Latest quarter vs prior year | -13.5% | +14.3% |
| EPS Growth (YoY)Latest quarter vs prior year | -46.7% | +22.8% |
Valuation Metrics
At 53.2x trailing earnings, ONTO trades at a 30% valuation discount to NVMI's 76.3x P/E. Adjusting for growth (PEG ratio), ONTO offers better value at 0.41x vs NVMI's 2.11x — a lower PEG means you pay less per unit of expected earnings growth.
| Metric | ONTOOnto Innovation I… | NVMINova Ltd. |
|---|---|---|
| Market CapShares × price | $10.6B | $12.8B |
| Enterprise ValueMkt cap + debt − cash | $10.4B | $12.9B |
| Trailing P/EPrice ÷ TTM EPS | 53.17x | 76.32x |
| Forward P/EPrice ÷ next-FY EPS est. | 43.45x | 42.79x |
| PEG RatioP/E ÷ EPS growth rate | 0.41x | 2.11x |
| EV / EBITDAEnterprise value multiple | 41.83x | 63.09x |
| Price / SalesMarket cap ÷ Revenue | 10.77x | 19.11x |
| Price / BookPrice ÷ Book value/share | 5.57x | 15.20x |
| Price / FCFMarket cap ÷ FCF | 49.73x | 58.93x |
Profitability & Efficiency
NVMI delivers a 19.7% return on equity — every $100 of shareholder capital generates $20 in annual profit, vs $9 for ONTO. ONTO carries lower financial leverage with a 0.01x debt-to-equity ratio, signaling a more conservative balance sheet compared to NVMI's 0.25x. On the Piotroski fundamental quality scale (0–9), NVMI scores 8/9 vs ONTO's 7/9, reflecting strong financial health.
| Metric | ONTOOnto Innovation I… | NVMINova Ltd. |
|---|---|---|
| ROE (TTM)Return on equity | +8.7% | +19.7% |
| ROA (TTM)Return on assets | +8.0% | +11.0% |
| ROICReturn on invested capital | +8.6% | +14.9% |
| ROCEReturn on capital employed | +10.1% | +20.7% |
| Piotroski ScoreFundamental quality 0–9 | 7 | 8 |
| Debt / EquityFinancial leverage | 0.01x | 0.25x |
| Net DebtTotal debt minus cash | -$198M | $78M |
| Cash & Equiv.Liquid assets | $213M | $158M |
| Total DebtShort + long-term debt | $15M | $236M |
| Interest CoverageEBIT ÷ Interest expense | — | 116.20x |
Total Returns (with DRIP)
A $10,000 investment in NVMI five years ago would be worth $48,991 today (with dividends reinvested), compared to $32,666 for ONTO. Over the past 12 months, NVMI leads with a +83.5% total return vs ONTO's +48.2%. The 3-year compound annual growth rate (CAGR) favors NVMI at 69.2% vs ONTO's 37.8% — a key indicator of consistent wealth creation.
| Metric | ONTOOnto Innovation I… | NVMINova Ltd. |
|---|---|---|
| YTD ReturnYear-to-date | +30.2% | +26.3% |
| 1-Year ReturnPast 12 months | +48.2% | +83.5% |
| 3-Year ReturnCumulative with dividends | +161.8% | +384.5% |
| 5-Year ReturnCumulative with dividends | +226.7% | +389.9% |
| 10-Year ReturnCumulative with dividends | +1455.4% | +4009.2% |
| CAGR (3Y)Annualised 3-year return | +37.8% | +69.2% |
Risk & Volatility
NVMI is the less volatile stock with a 1.83 beta — it tends to amplify market swings less than ONTO's 2.24 beta. A beta below 1.0 means the stock typically moves less than the S&P 500. ONTO currently trades 92.9% from its 52-week high vs NVMI's 86.5% drawdown — a narrower gap to the peak suggests stronger recent price momentum.
| Metric | ONTOOnto Innovation I… | NVMINova Ltd. |
|---|---|---|
| Beta (5Y)Sensitivity to S&P 500 | 2.24x | 1.83x |
| 52-Week HighHighest price in past year | $232.49 | $507.27 |
| 52-Week LowLowest price in past year | $85.88 | $154.00 |
| % of 52W HighCurrent price vs 52-week peak | +92.9% | +86.5% |
| RSI (14)Momentum oscillator 0–100 | 55.6 | 50.4 |
| Avg Volume (50D)Average daily shares traded | 713K | 335K |
Analyst Outlook
Wall Street rates ONTO as "Buy" and NVMI as "Buy". Consensus price targets imply 21.2% upside for ONTO (target: $262) vs 11.5% for NVMI (target: $490).
| Metric | ONTOOnto Innovation I… | NVMINova Ltd. |
|---|---|---|
| Analyst RatingConsensus buy/hold/sell | Buy | Buy |
| Price TargetConsensus 12-month target | $261.67 | $489.50 |
| # AnalystsCovering analysts | 11 | 12 |
| Dividend YieldAnnual dividend ÷ price | — | — |
| Dividend StreakConsecutive years of raises | — | — |
| Dividend / ShareAnnual DPS | — | — |
| Buyback YieldShare repurchases ÷ mkt cap | +0.2% | +0.2% |
Historical Charts
Charts are rendered on first load. Hover for details.
Chart 1Total Return — 5 Years (Rebased to 100)
| Stock | Mar 20 | Feb 26 | Change |
|---|---|---|---|
| Onto Innovation Inc. (ONTO) | 100 | 637.98 | +538.0% |
| Nova Ltd. (NVMI) | 100 | 1,268.58 | +1168.6% |
Nova Ltd. (NVMI) returned +390% over 5 years vs Onto Innovation Inc. (ONTO)'s +227%. A $10,000 investment in NVMI 5 years ago would be worth $48,991 today (including dividends reinvested).
Chart 2Revenue Growth — 10 Years
| Stock | 2015 | 2024 | Change |
|---|---|---|---|
| Onto Innovation Inc. (ONTO) | $222M | $987M | +345.4% |
| Nova Ltd. (NVMI) | $149M | $672M | +352.7% |
Onto Innovation Inc.'s revenue grew from $222M (2015) to $987M (2024) — a 18.1% CAGR. Nova Ltd.'s revenue grew from $149M (2015) to $672M (2024) — a 18.3% CAGR.
Chart 3Net Margin Trend — 10 Years
| Stock | 2015 | 2024 | Change |
|---|---|---|---|
| Onto Innovation Inc. (ONTO) | 8.1% | 20.4% | +152.2% |
| Nova Ltd. (NVMI) | 10.6% | 27.3% | +158.1% |
Onto Innovation Inc.'s net margin went from 8% (2015) to 20% (2024). Nova Ltd.'s net margin went from 11% (2015) to 27% (2024).
Chart 4P/E Ratio History — 8 Years
| Stock | 2017 | 2024 | Change |
|---|---|---|---|
| Onto Innovation Inc. (ONTO) | 24.4 | 41.1 | +68.4% |
| Nova Ltd. (NVMI) | 15.9 | 34.3 | +115.7% |
Onto Innovation Inc. has traded in a 15x–76x P/E range over 7 years; current trailing P/E is ~53x. Nova Ltd. has traded in a 12x–47x P/E range over 8 years; current trailing P/E is ~76x.
Chart 5EPS Growth — 10 Years
| Stock | 2015 | 2024 | Change |
|---|---|---|---|
| Onto Innovation Inc. (ONTO) | 0.56 | 4.06 | +625.0% |
| Nova Ltd. (NVMI) | 0.57 | 5.75 | +908.8% |
Onto Innovation Inc.'s EPS grew from $0.56 (2015) to $4.06 (2024) — a 25% CAGR. Nova Ltd.'s EPS grew from $0.57 (2015) to $5.75 (2024) — a 29% CAGR.
Chart 6Free Cash Flow — 5 Years
Onto Innovation Inc. generated $214M FCF in 2024 (+31% vs 2021). Nova Ltd. generated $218M FCF in 2024 (+71% vs 2021).
ONTO vs NVMI: Frequently Asked Questions
9 questions · data-driven answers · updated daily
01Is ONTO or NVMI a better buy right now?
Onto Innovation Inc. (ONTO) offers the better valuation at 53.2x trailing P/E (43.4x forward), making it the more compelling value choice. Analysts rate Onto Innovation Inc. (ONTO) a "Buy" — based on 11 analyst ratings — the highest consensus in this comparison. The "better buy" depends entirely on your goals: growth investors should weight revenue trajectory, value investors should weight P/E and PEG, and income investors should weight dividend yield and streak.
02Which has the better valuation — ONTO or NVMI?
On trailing P/E, Onto Innovation Inc. (ONTO) is the cheapest at 53.2x versus Nova Ltd. at 76.3x. On forward P/E, Nova Ltd. is actually cheaper at 42.8x — notably different from the trailing picture, reflecting expected earnings growth. The PEG ratio (P/E divided by earnings growth rate) is the most growth-adjusted single valuation metric: Onto Innovation Inc. wins at 0.34x versus Nova Ltd.'s 1.18x — a PEG below 1.0 traditionally signals the market is underpricing earnings growth.
03Which is the better long-term investment — ONTO or NVMI?
Over the past 5 years, Nova Ltd. (NVMI) delivered a total return of +389.9%, compared to +226.7% for Onto Innovation Inc. (ONTO). A $10,000 investment in NVMI five years ago would be worth approximately $49K today (assuming dividends reinvested). Over 10 years, the gap is even starker: NVMI returned +40.1% versus ONTO's +1455%. Past returns do not guarantee future results, and the stock with the higher historical return may already have its best growth priced in.
04Which is safer — ONTO or NVMI?
By beta (market sensitivity over 5 years), Nova Ltd. (NVMI) is the lower-risk stock at 1.83β versus Onto Innovation Inc.'s 2.24β — meaning ONTO is approximately 22% more volatile than NVMI relative to the S&P 500. On balance sheet safety, Onto Innovation Inc. (ONTO) carries a lower debt/equity ratio of 1% versus 25% for Nova Ltd. — giving it more financial flexibility in a downturn.
05Which has better profit margins — ONTO or NVMI?
Nova Ltd. (NVMI) is the more profitable company, earning 27.3% net margin versus 20.4% for Onto Innovation Inc. — meaning it keeps 27.3% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: NVMI leads at 27.9% versus 19.0% for ONTO. At the gross margin level — before operating expenses — NVMI leads at 57.6%, reflecting greater pricing power or product mix advantage. Stronger margins indicate durable pricing power, lower cost of revenue, or higher mix of software/services. They are one of the clearest signs of business quality.
06Is ONTO or NVMI more undervalued right now?
The PEG ratio (forward P/E divided by expected earnings growth rate) is the most precise measure of undervaluation relative to growth potential. By this metric, Onto Innovation Inc. (ONTO) is the more undervalued stock at a PEG of 0.34x versus Nova Ltd.'s 1.18x. A PEG below 1.0 is traditionally considered the threshold for growth-adjusted undervaluation. On forward earnings alone, Nova Ltd. (NVMI) trades at 42.8x forward P/E versus 43.4x for Onto Innovation Inc. — 0.7x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for ONTO: 21.2% to $261.67.
07Which pays a better dividend — ONTO or NVMI?
None of the stocks in this comparison currently pay a material dividend. All are effectively zero-yield and should be held for capital appreciation rather than income.
08Is ONTO or NVMI better for a retirement portfolio?
For long-horizon retirement investors, Onto Innovation Inc. (ONTO) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (+1455% 10Y return). Nova Ltd. (NVMI) carries a higher beta of 1.83 — meaning larger drawdowns in market downturns, which matters significantly when you cannot wait years for a recovery. Both have compounded well over 10 years (ONTO: +1455%, NVMI: +40.1%), confirming both are viable long-term holds — but the lower-volatility option typically results in less emotional selling during corrections. Retirement portfolios generally favour predictability over maximum returns. Consult a financial advisor before making allocation decisions.
09What are the main differences between ONTO and NVMI?
Both stocks operate in the Technology sector, making this a peer-level intra-sector comparison — the same macro tailwinds and headwinds will affect both. These fundamental differences mean investors should not choose between them on a single metric — the "better stock" depends entirely on which of these characteristics aligns with your investment strategy.
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