In the fast-evolving semiconductor industry, Lattice Semiconductor Corporation (LSCC) and Nova Ltd. (NVMI) stand out as key players driving innovation and market growth. Both companies operate globally, offering cutting-edge solutions that serve overlapping sectors such as communications, computing, and advanced manufacturing. By comparing their market positions, technology strategies, and growth prospects, I will help you identify which company holds the most promise for your investment portfolio in 2026.
Table of contents
Companies Overview
I will begin the comparison between Lattice Semiconductor Corporation and Nova Ltd. by providing an overview of these two companies and their main differences.
Lattice Semiconductor Corporation Overview
Lattice Semiconductor Corporation develops and sells semiconductor products globally, focusing on field programmable gate arrays and video connectivity products. It serves original equipment manufacturers in communications, computing, consumer, industrial, and automotive markets. Founded in 1983 and headquartered in Hillsboro, Oregon, Lattice operates through direct sales and a network of independent distributors.
Nova Ltd. Overview
Nova Ltd. designs and manufactures process control systems for semiconductor production, offering metrology platforms for various manufacturing steps such as lithography and etch. Serving sectors like logic, foundries, and memory manufacturers, Nova operates internationally with headquarters in Rehovot, Israel. The company was founded in 1993 and rebranded from Nova Measuring Instruments Ltd. in 2021.
Key similarities and differences
Both companies operate in the semiconductor industry and serve global markets with technology products. Lattice focuses on programmable gate arrays and connectivity solutions, targeting OEMs across multiple sectors, while Nova specializes in process control metrology systems tailored for semiconductor manufacturing. Each has a distinct product portfolio and market niche within the broader semiconductor ecosystem.
Income Statement Comparison
This table compares key income statement metrics for Lattice Semiconductor Corporation and Nova Ltd. for the fiscal year 2024, highlighting their financial performance in USD.
| Metric | Lattice Semiconductor Corporation | Nova Ltd. |
|---|---|---|
| Market Cap | 11.7B | 12.9B |
| Revenue | 509M | 672M |
| EBITDA | 107M | 205M |
| EBIT | 61M | 188M |
| Net Income | 61M | 185M |
| EPS | 0.44 | 6.31 |
| Fiscal Year | 2024 | 2024 |
Income Statement Interpretations
Lattice Semiconductor Corporation
Lattice Semiconductor’s revenue exhibited a 24.8% growth over 2020-2024 but fell by 30.9% in 2024 alone. Net income grew overall by 29%, yet declined sharply by 65.9% in 2024. Margins remained generally stable with a gross margin of 66.8% and net margin of 12% in 2024. The latest year showed significant profit contraction despite sustained margin levels.
Nova Ltd.
Nova demonstrated robust revenue growth of 149.6% over 2020-2024, with a 29.8% increase in 2024. Net income soared 283.6% overall and rose 34.4% in the last year. Margins improved notably, with a 57.6% gross margin and a strong 27.3% net margin in 2024. The most recent year highlighted accelerating earnings and margin expansion alongside solid top-line growth.
Which one has the stronger fundamentals?
Nova Ltd. shows stronger fundamentals with consistently favorable growth rates, expanding margins, and higher profitability metrics. Lattice’s fundamentals are mixed, featuring overall growth but a pronounced earnings decline in 2024 and more modest margins. Nova’s income statement reflects healthier and more resilient financial performance based on the provided evaluations.
Financial Ratios Comparison
The table below presents a side-by-side comparison of key financial ratios for Lattice Semiconductor Corporation (LSCC) and Nova Ltd. (NVMI) for the fiscal year 2024.
| Ratios | Lattice Semiconductor Corporation (LSCC) | Nova Ltd. (NVMI) |
|---|---|---|
| ROE | 8.60% | 19.81% |
| ROIC | 4.59% | 13.39% |
| P/E | 133x | 31.2x |
| P/B | 11.41x | 6.18x |
| Current Ratio | 3.66 | 2.32 |
| Quick Ratio | 2.62 | 1.92 |
| D/E (Debt-to-Equity) | 0.02 | 0.25 |
| Debt-to-Assets | 1.81% | 16.98% |
| Interest Coverage | 130x | 116x |
| Asset Turnover | 0.60 | 0.48 |
| Fixed Asset Turnover | 7.62 | 5.06 |
| Payout ratio | 0% | 0% |
| Dividend yield | 0% | 0% |
Interpretation of the Ratios
Lattice Semiconductor Corporation
Lattice Semiconductor shows mixed ratio results with strengths in low debt levels (debt-to-equity 0.02) and strong interest coverage (228.11), but has concerns with a high price-to-earnings ratio (132.74) and weak returns on equity (8.6%) and invested capital (4.59%). The company does not pay dividends, likely reflecting a reinvestment or growth strategy without shareholder payouts.
Nova Ltd.
Nova Ltd. presents generally favorable ratios, including a strong net margin (27.33%), return on equity (19.81%), and return on invested capital (13.39%). It maintains a moderate debt load (debt-to-assets 16.98%) and solid liquidity (current ratio 2.32). Like Lattice, Nova Ltd. does not pay dividends, possibly prioritizing reinvestment or growth initiatives over distributions.
Which one has the best ratios?
Comparing both, Nova Ltd. demonstrates a more favorable overall ratio profile with stronger profitability, returns, and liquidity metrics. Lattice Semiconductor shows some financial strengths but is hindered by weak profitability and valuation concerns. Therefore, Nova Ltd. holds the edge in ratio evaluations based on the given data.
Strategic Positioning
This section compares the strategic positioning of Lattice Semiconductor Corporation (LSCC) and Nova Ltd. (NVMI) including market position, key segments, and exposure to technological disruption:
LSCC
- Mid-size semiconductor firm with competitive pressure from global players in multiple regions.
- Focuses on FPGA products and video connectivity; licenses technology; serves communications, computing, industrial, automotive sectors.
- Exposure to semiconductor industry disruption through evolving process technologies and licensing models.
NVMI
- Larger market cap with a focus on semiconductor process control systems serving global manufacturers.
- Specializes in metrology platforms for semiconductor manufacturing, serving logic, memory, foundries.
- Faces disruption risks linked to semiconductor manufacturing innovations and process control evolution.
LSCC vs NVMI Positioning
LSCC pursues a diversified approach across FPGA products, licensing, and multiple end markets, offering broader exposure but higher competition. NVMI concentrates on semiconductor process control systems, benefiting from specialization but with narrower market focus.
Which has the best competitive advantage?
NVMI shows a slightly favorable moat with growing ROIC, indicating improving profitability and potential competitive advantage. LSCC’s very unfavorable moat with declining ROIC suggests value destruction and weaker competitive positioning.
Stock Comparison
The past year saw significant bullish trends for both Lattice Semiconductor Corporation and Nova Ltd., with Nova Ltd. exhibiting a notably higher price appreciation and more intense trading dynamics.
Trend Analysis
Lattice Semiconductor Corporation’s stock showed a 14.02% increase over the past 12 months, indicating a bullish trend with acceleration. Prices ranged from a low of 39.03 to a high of 85.23, with moderate volatility (std deviation 11.01).
Nova Ltd. experienced a strong bullish trend with a 168.54% price increase in the same period, also accelerating. Its price fluctuated between 159.92 and 434.55, showing higher volatility (std deviation 55.86).
Comparing both, Nova Ltd. delivered the highest market performance, significantly outperforming Lattice Semiconductor Corporation in price growth over the past year.
Target Prices
Analysts present a clear target price consensus for Lattice Semiconductor Corporation and Nova Ltd., reflecting their current market outlook.
| Company | Target High | Target Low | Consensus |
|---|---|---|---|
| Lattice Semiconductor Corporation | 105 | 65 | 83 |
| Nova Ltd. | 390 | 335 | 362.5 |
The consensus target for Lattice Semiconductor is slightly below its current price of 85.23, suggesting moderate upside potential. Nova Ltd.’s target consensus is significantly below its current price of 434.55, indicating analyst expectations of a price correction.
Analyst Opinions Comparison
This section compares analysts’ ratings and financial scores for Lattice Semiconductor Corporation (LSCC) and Nova Ltd. (NVMI):
Rating Comparison
LSCC Rating
- Rating: B- with a “Very Favorable” status
- Discounted Cash Flow Score: 3, indicating moderate value
- ROE Score: 2, moderate efficiency in profit generation
- ROA Score: 3, moderate asset utilization
- Debt To Equity Score: 4, favorable financial stability
NVMI Rating
- Rating: B- with a “Very Favorable” status
- Discounted Cash Flow Score: 3, indicating moderate value
- ROE Score: 4, favorable efficiency in profit generation
- ROA Score: 5, very favorable asset utilization
- Debt To Equity Score: 1, very unfavorable financial risk
Which one is the best rated?
Both companies share the same overall rating of B- with a “Very Favorable” status. NVMI outperforms LSCC in ROE and ROA scores but has a weaker debt to equity score, indicating higher financial risk compared to LSCC.
Scores Comparison
Here is a comparison of the Altman Z-Score and Piotroski Score for the two companies:
LSCC Scores
- Altman Z-Score: 52.69, indicating a very safe zone.
- Piotroski Score: 5, categorized as average financial strength.
NVMI Scores
- Altman Z-Score: 7.76, indicating a safe zone.
- Piotroski Score: 7, categorized as strong financial strength.
Which company has the best scores?
NVMI shows a strong Piotroski Score of 7 compared to LSCC’s average 5, while both are in the safe zone for Altman Z-Score. NVMI’s scores suggest stronger financial health overall.
Grades Comparison
Here is a detailed comparison of the recent grades assigned to Lattice Semiconductor Corporation and Nova Ltd.:
Lattice Semiconductor Corporation Grades
The table below summarizes the latest grades from established grading companies for Lattice Semiconductor Corporation:
| Grading Company | Action | New Grade | Date |
|---|---|---|---|
| Keybanc | Maintain | Overweight | 2026-01-13 |
| Stifel | Maintain | Buy | 2025-11-04 |
| Baird | Maintain | Outperform | 2025-11-04 |
| Needham | Maintain | Buy | 2025-11-04 |
| Rosenblatt | Maintain | Buy | 2025-11-04 |
| Benchmark | Maintain | Buy | 2025-11-04 |
| Susquehanna | Maintain | Positive | 2025-10-22 |
| Keybanc | Maintain | Overweight | 2025-09-30 |
| Needham | Maintain | Buy | 2025-09-22 |
| Benchmark | Maintain | Buy | 2025-09-11 |
Overall, Lattice Semiconductor Corporation has consistently maintained positive ratings, predominantly Buy and Overweight grades, indicating stable analyst confidence.
Nova Ltd. Grades
The table below displays the latest grades from recognized grading firms for Nova Ltd.:
| Grading Company | Action | New Grade | Date |
|---|---|---|---|
| B of A Securities | Maintain | Buy | 2026-01-13 |
| Jefferies | Maintain | Buy | 2025-12-15 |
| Evercore ISI Group | Maintain | Outperform | 2025-11-07 |
| Benchmark | Maintain | Buy | 2025-11-07 |
| Cantor Fitzgerald | Maintain | Overweight | 2025-06-24 |
| B of A Securities | Maintain | Buy | 2025-06-24 |
| Benchmark | Maintain | Buy | 2025-05-09 |
| Citigroup | Maintain | Buy | 2025-05-09 |
| B of A Securities | Maintain | Buy | 2025-04-16 |
| Cantor Fitzgerald | Maintain | Overweight | 2025-03-14 |
Nova Ltd. shows a consistent Buy and Outperform trend, with no recent Sell ratings, reflecting sustained positive analyst sentiment.
Which company has the best grades?
Both companies have strong Buy consensus ratings, but Lattice Semiconductor Corporation has a slightly higher count of Buy ratings (14 vs. 11) and a more diverse set of Overweight and Outperform grades. This suggests potentially stronger analyst endorsement for LSCC, which could impact investor confidence and perceived upside.
Strengths and Weaknesses
Below is a comparison of Lattice Semiconductor Corporation (LSCC) and Nova Ltd. (NVMI) based on key financial and strategic criteria:
| Criterion | Lattice Semiconductor Corporation (LSCC) | Nova Ltd. (NVMI) |
|---|---|---|
| Diversification | Moderate: Primarily focused on licensing and product distribution; limited product lines | Strong: Concentrated product revenue with significant growth |
| Profitability | Moderate net margin (12%), but declining ROIC and value destruction | High net margin (27.3%) and growing ROIC, indicating improving profitability |
| Innovation | Limited recent innovation impact; declining return on invested capital | Increasing profitability suggests effective innovation and operational improvements |
| Global presence | Good distributor network but limited direct global expansion | Solid global footprint supported by growing product revenue |
| Market Share | Stable but challenged by declining profitability and efficiency | Expanding market share supported by strong financials and growth |
Key takeaways: Nova Ltd. shows stronger profitability and growth potential with a favorable financial profile and rising ROIC. Lattice Semiconductor faces challenges with declining returns and value destruction despite decent margins. Investors should weigh Nova’s growth and efficiency against Lattice’s current struggles.
Risk Analysis
Below is a comparative table highlighting key risk factors for Lattice Semiconductor Corporation (LSCC) and Nova Ltd. (NVMI) based on the most recent data from 2024.
| Metric | Lattice Semiconductor (LSCC) | Nova Ltd. (NVMI) |
|---|---|---|
| Market Risk | Beta 1.72 – higher volatility risk | Beta 1.83 – higher volatility risk |
| Debt level | Very low debt (D/E 0.02), low debt-to-assets 1.81% | Moderate debt (D/E 0.25), debt-to-assets 16.98% |
| Regulatory Risk | Moderate – US tech sector regulations | Moderate – exposed to international semiconductor regulations |
| Operational Risk | Moderate – dependence on FPGA tech innovation | Moderate – reliance on precision metrology technology |
| Environmental Risk | Low – standard semiconductor industry impact | Low – standard semiconductor industry impact |
| Geopolitical Risk | Moderate – US-based with global sales | Elevated – based in Israel with exposure to geopolitical tensions |
In synthesis, both companies exhibit elevated market risk due to beta values above 1.7, indicating sensitivity to market swings. LSCC’s very low debt reduces financial risk significantly, whereas NVMI carries moderate leverage that could amplify risks under stress. NVMI’s geopolitical exposure is higher given its Israel base amid regional uncertainties. Operational and regulatory risks remain moderate and typical for semiconductor firms. Investors should weigh NVMI’s geopolitical and debt risks carefully against its stronger profitability metrics, while LSCC shows financial stability but faces valuation challenges.
Which Stock to Choose?
Lattice Semiconductor Corporation (LSCC) shows a favorable income statement overall, despite a recent 31% revenue decline. Its financial ratios are slightly unfavorable, with strong liquidity and low debt but weak profitability metrics. The company has a very unfavorable MOAT rating due to declining ROIC below WACC and a moderate overall rating of B-.
Nova Ltd. (NVMI) demonstrates strong income growth with a 30% revenue increase in the last year and favorable profitability ratios. Its financial ratios are largely favorable with solid returns and moderate debt. The MOAT rating is slightly favorable, reflecting growing ROIC, and it holds a very favorable rating of B- with strong financial scores.
Investors seeking growth might find NVMI’s accelerating revenue and improving profitability metrics appealing, while those preferring a company with strong liquidity and low leverage might consider LSCC, despite its declining profitability and value destruction signals. The choice could depend on whether the investor prioritizes growth potential or financial stability.
Disclaimer: Investment carries a risk of loss of initial capital. The past performance is not a reliable indicator of future results. Be sure to understand risks before making an investment decision.
Go Further
I encourage you to read the complete analyses of Lattice Semiconductor Corporation and Nova Ltd. to enhance your investment decisions:
