In today’s rapidly evolving semiconductor industry, ASML Holding N.V. and Nova Ltd. stand out as pivotal players, each with unique innovations and market strategies. ASML, renowned for its advanced lithography systems, primarily serves the largest chipmakers, while Nova specializes in process control systems that enhance semiconductor manufacturing efficiency. By comparing these two companies, I aim to provide insights into their competitive dynamics and future growth potential. Join me as we explore which company may be the more compelling investment opportunity.
Table of contents
Company Overview
ASML Overview
ASML Holding N.V., based in Veldhoven, the Netherlands, is a leading provider of advanced semiconductor equipment systems. Founded in 1984, ASML specializes in the development and manufacturing of lithography systems, notably extreme ultraviolet (EUV) and deep ultraviolet (DUV) technologies. These systems are crucial for producing the latest semiconductor nodes, enhancing chipmakers’ ability to create smaller, more powerful components. With a robust market capitalization of $410.8B, ASML plays a pivotal role in the semiconductor supply chain, serving clients across various regions, including Asia, Europe, and North America. The company’s innovative solutions, including metrology and inspection systems, place it at the forefront of the technology sector.
Nova Ltd. Overview
Nova Ltd., headquartered in Rehovot, Israel, focuses on designing and producing precision process control systems for the semiconductor manufacturing industry. Established in 1993, the company offers a comprehensive suite of metrology platforms that cater to diverse manufacturing processes, such as lithography, etching, and chemical mechanical planarization. With a market capitalization of $9.2B, Nova serves a global clientele, including logic, foundries, and memory manufacturers, reinforcing its position in the competitive semiconductor landscape. Nova’s commitment to innovation enables it to provide cutting-edge solutions that enhance process efficiency and yield in semiconductor fabrication.
Key similarities and differences
Both ASML and Nova operate within the semiconductor industry, focusing on technological advancements to support chip manufacturing. However, their core business models diverge; ASML specializes in lithography equipment, while Nova centers on metrology systems for process control. This distinction highlights their complementary roles in the semiconductor supply chain, with ASML providing essential tools for chip production and Nova ensuring quality and efficiency in manufacturing processes.
Income Statement Comparison
The following table provides a comparative overview of the most recent income statements for ASML Holding N.V. and Nova Ltd., highlighting key financial metrics.
| Metric | ASML (2024) | Nova (2024) |
|---|---|---|
| Market Cap | 410.83B | 9.23B |
| Revenue | 28.26B | 672.40M |
| EBITDA | 10.12B | 204.92M |
| EBIT | 9.21B | 187.54M |
| Net Income | 7.57B | 183.76M |
| EPS | 19.25 | 6.31 |
| Fiscal Year | 2024 | 2024 |
Interpretation of Income Statement
In 2024, ASML experienced significant revenue growth, reaching €28.26B, a notable increase from the previous year, while Nova’s revenue rose to $672.40M. The net income for ASML also showed robust performance at €7.57B, indicating a healthy profit margin, although Nova’s profit of $183.76M suggests a more modest growth trajectory. ASML maintained high margins, reflecting operational efficiency, while Nova’s margins remained stable, signaling a consistent performance despite market challenges. Overall, ASML’s strong growth outpaces Nova’s, showing a clear lead in the semiconductor industry dynamics.
Financial Ratios Comparison
In this section, I present a comparative analysis of key financial ratios for ASML and Nova Ltd. (NVMI). The most recent data will help us evaluate each company’s financial health and performance relative to each other.
| Metric | ASML | NVMI |
|---|---|---|
| ROE | 41% | 20% |
| ROIC | 25% | 13% |
| P/E | 35 | 29 |
| P/B | 14.25 | 5.28 |
| Current Ratio | 1.53 | 2.32 |
| Quick Ratio | 0.95 | 1.92 |
| D/E | 0.27 | 0.25 |
| Debt-to-Assets | 10% | 17% |
| Interest Coverage | 56 | 116 |
| Asset Turnover | 0.58 | 0.48 |
| Fixed Asset Turnover | 3.91 | 5.06 |
| Payout Ratio | 33% | 0% |
| Dividend Yield | 0.97% | 0% |
Interpretation of Financial Ratios
ASML exhibits stronger returns on equity and invested capital compared to NVMI, indicating superior profitability and efficiency. Although NVMI has a higher interest coverage ratio, which suggests better ability to meet interest obligations, ASML’s lower debt levels (D/E and Debt-to-Assets) highlight a more conservative capital structure. However, NVMI’s significantly lower payout ratio and absence of dividends may appeal to investors seeking growth. Overall, ASML appears to have a stronger financial position, but both companies present unique strengths worthy of consideration.
Dividend and Shareholder Returns
ASML Holding N.V. currently pays dividends with a payout ratio of approximately 33.8%. The annual dividend yield stands at around 0.97%, reflecting a consistent commitment to returning value to shareholders. Additionally, ASML engages in share buyback programs, enhancing shareholder returns.
Conversely, Nova Ltd. does not distribute dividends, retaining profits for reinvestment and growth. This strategy aligns with its high-growth phase, focusing on R&D and acquisitions. Both companies adopt distinct approaches, with ASML’s dividends supporting immediate shareholder value, while Nova’s strategy aims for long-term growth sustainability.
Strategic Positioning
ASML Holding N.V. dominates the semiconductor equipment market with a market cap of approximately $411B, primarily due to its advanced lithography systems, which are critical for chipmakers. Its competitive edge is reinforced by continuous technological innovation and a strong global presence. In contrast, Nova Ltd., with a market cap of about $9.23B, focuses on process control systems but faces significant competitive pressure from larger players like ASML. Both companies must navigate rapid technological disruptions to maintain their market positions.
Stock Comparison
In this section, I will analyze the weekly stock price movements and trading dynamics of ASML Holding N.V. (ASML) and Nova Ltd. (NVMI) over the past year, highlighting key price fluctuations and trends.
Trend Analysis
ASML Holding N.V. (ASML) Over the past year, ASML’s stock has experienced a remarkable price change of +50.71%. This significant increase indicates a bullish trend, characterized by acceleration in price movements. The stock reached a notable high of 1085.26 and a low of 605.55, showcasing considerable volatility with a standard deviation of 126.46. Recently, from September 14, 2025, to November 30, 2025, the stock exhibited a price change of +30.24%, maintaining its bullish trend with a trend slope of 12.94 and a standard deviation of 67.72, suggesting continued upward momentum.
Nova Ltd. (NVMI) In contrast, NVMI has shown an impressive price change of +141.91% over the last year, also reflecting a bullish trend, albeit with signs of deceleration. The highest price reached was 345.06, while the lowest was 129.32, with a standard deviation of 48.52 indicating moderate volatility. In the recent period from September 14, 2025, to November 30, 2025, NVMI’s stock experienced a price change of +6.73%, which is still positive, but suggests a slight decrease in momentum with a trend slope of -0.39 and a standard deviation of 19.49.
In summary, both stocks are currently in a bullish trend, with ASML showing signs of acceleration and NVMI indicating deceleration in its price movements.
Analyst Opinions
Recent analyst recommendations for ASML Holding N.V. and Nova Ltd. both indicate a “B+” rating, suggesting a cautious optimism. Analysts highlight ASML’s robust return on equity and assets, while noting concerns about its price-to-earnings ratio. Nova Ltd. shares similar strengths in asset returns but has a slightly lower rating in debt-to-equity. Overall, the consensus for both companies leans towards a “buy” for 2025, reflecting confidence in their growth potential despite some financial metrics requiring attention.
Stock Grades
In the current market landscape, it is essential to keep an eye on stock ratings from credible grading companies to make informed investment decisions. Here’s a look at the latest grades for ASML Holding N.V. and Nova Ltd.
ASML Holding N.V. Grades
| Grading Company | Action | New Grade | Date |
|---|---|---|---|
| Wells Fargo | Maintain | Overweight | 2025-10-16 |
| Susquehanna | Maintain | Positive | 2025-10-10 |
| JP Morgan | Maintain | Overweight | 2025-10-06 |
| UBS | Upgrade | Buy | 2025-09-05 |
| Wells Fargo | Maintain | Overweight | 2025-07-08 |
| Jefferies | Downgrade | Hold | 2025-06-26 |
| Barclays | Downgrade | Equal Weight | 2025-06-03 |
| Wells Fargo | Maintain | Overweight | 2025-04-17 |
| Susquehanna | Maintain | Positive | 2025-04-17 |
| Raymond James | Maintain | Strong Buy | 2025-04-16 |
Nova Ltd. Grades
| Grading Company | Action | New Grade | Date |
|---|---|---|---|
| Evercore ISI Group | Maintain | Outperform | 2025-11-07 |
| Benchmark | Maintain | Buy | 2025-11-07 |
| B of A Securities | Maintain | Buy | 2025-06-24 |
| Cantor Fitzgerald | Maintain | Overweight | 2025-06-24 |
| Citigroup | Maintain | Buy | 2025-05-09 |
| Benchmark | Maintain | Buy | 2025-05-09 |
| B of A Securities | Maintain | Buy | 2025-04-16 |
| Cantor Fitzgerald | Maintain | Overweight | 2025-03-14 |
| Benchmark | Maintain | Buy | 2025-02-14 |
| Needham | Maintain | Hold | 2025-02-14 |
Overall, both ASML and Nova Ltd. show a positive trend in their stock grades, with several maintain actions from reputable firms indicating a steady outlook. Notably, ASML received an upgrade to “Buy” from UBS, while Nova Ltd. continues to garner consistent support with multiple “Buy” ratings.
Target Prices
The current consensus target prices for ASML Holding N.V. and Nova Ltd. indicate optimistic projections from analysts.
| Company | Target High | Target Low | Consensus |
|---|---|---|---|
| ASML Holding N.V. | 1200 | 800 | 1045 |
| Nova Ltd. | 224 | 210 | 217 |
For ASML, the consensus target price of 1045 suggests a slight upside from the current price of 1059.92. Meanwhile, Nova’s target consensus of 217 represents a potential growth opportunity compared to its current price of 312.84.
Strengths and Weaknesses
The following table summarizes the strengths and weaknesses of ASML Holding N.V. and Nova Ltd., based on recent performance metrics.
| Criterion | ASML Holding N.V. | Nova Ltd. |
|---|---|---|
| Diversification | High | Moderate |
| Profitability | Strong (28.4% net margin) | Moderate (26.3% net margin) |
| Innovation | Leading-edge tech | Competitive tech |
| Global presence | Extensive (operates in multiple countries) | Significant (primarily in Israel, US, Asia) |
| Market Share | High in semiconductors | Growing in niche markets |
| Debt level | Low (debt-to-equity 0.36) | Moderate (debt-to-equity 0.32) |
Key takeaways suggest that ASML holds a competitive advantage in profitability and global presence, while Nova is making strides in innovation and is maintaining a manageable debt level.
Risk Analysis
In this section, I provide a comprehensive overview of the risks associated with two companies in the semiconductor industry, ASML Holding N.V. and Nova Ltd.
| Metric | ASML Holding N.V. | Nova Ltd. |
|---|---|---|
| Market Risk | High | Moderate |
| Regulatory Risk | Moderate | High |
| Operational Risk | Moderate | Low |
| Environmental Risk | Low | Moderate |
| Geopolitical Risk | High | Moderate |
Both ASML and Nova face significant market and geopolitical risks. The semiconductor industry is sensitive to global supply chain disruptions and regulatory changes, particularly with increasing tensions between key markets. For instance, ASML’s reliance on exports to China is under scrutiny due to geopolitical tensions, while Nova’s operations in multiple regions expose it to varying regulatory environments.
Which one to choose?
In comparing ASML Holding N.V. (ASML) and Nova Ltd. (NVMI), both companies exhibit strong fundamentals, but with distinct characteristics. ASML shows a robust gross profit margin of approximately 51% and a net profit margin of 27%, indicating efficiency in converting sales into profits. Its P/E ratio of 34.77 suggests a premium valuation, reflective of its leading position in the semiconductor equipment sector. NVMI, on the other hand, boasts a higher gross profit margin of about 58% and a lower P/E ratio of 31.20, indicating potential value for growth investors. Analysts rate both companies as B+, highlighting their solid performance.
For growth-oriented investors, NVMI may be preferable due to its higher price growth and current ratio of 2.32, suggesting better liquidity. Conversely, ASML may attract those prioritizing established market leaders and profitability. Both companies face risks from competition and market dependence, which could impact future earnings.
Disclaimer: This article is not financial advice. Each investor is responsible for their own investment decisions.
Go further
I encourage you to read the complete analyses of ASML Holding N.V. and Nova Ltd. to enhance your investment decisions:
