In the fast-evolving semiconductor industry, Nova Ltd. (NVMI) and Silicon Laboratories Inc. (SLAB) stand out for their innovative approaches and market reach. Nova specializes in process control systems critical for semiconductor manufacturing, while Silicon Labs focuses on analog mixed-signal solutions for IoT applications. This comparison highlights their overlapping yet distinct niches, helping you identify which company offers the most compelling investment potential in 2026. Let’s dive in to find out.
Table of contents
Companies Overview
I will begin the comparison between Nova Ltd. and Silicon Laboratories Inc. by providing an overview of these two companies and their main differences.
Nova Ltd. Overview
Nova Ltd. focuses on designing, developing, producing, and selling process control systems for semiconductor manufacturing. Operating internationally, including Israel, the US, Taiwan, China, and Korea, it supplies metrology platforms for various semiconductor processes such as lithography and etch. Founded in 1993 and headquartered in Rehovot, Israel, Nova serves integrated circuit manufacturers across logic, foundries, and memory sectors.
Silicon Laboratories Inc. Overview
Silicon Laboratories Inc. is a fabless semiconductor company specializing in analog-intensive mixed-signal solutions. Its products include wireless microcontrollers and sensors used in IoT applications like smart homes, industrial automation, and medical devices. Established in 1996 and based in Austin, Texas, Silicon Labs sells globally through direct sales and distributor networks, targeting diverse electronic markets.
Key similarities and differences
Both companies operate in the semiconductor industry and trade on NASDAQ, focusing on advanced technology solutions. Nova Ltd. produces process control systems primarily for semiconductor fabrication, while Silicon Labs develops mixed-signal semiconductors tailored for IoT applications. Their business models differ as Nova manufactures equipment, whereas Silicon Labs is fabless, emphasizing product design and sales through varied channels.
Income Statement Comparison
The following table compares key income statement metrics for Nova Ltd. and Silicon Laboratories Inc. for the fiscal year 2024, providing a snapshot of their financial performance.
| Metric | Nova Ltd. (NVMI) | Silicon Laboratories Inc. (SLAB) |
|---|---|---|
| Market Cap | 12.9B | 5.0B |
| Revenue | 672M | 584M |
| EBITDA | 205M | -105M |
| EBIT | 188M | -154M |
| Net Income | 185M | -191M |
| EPS | 6.31 | -5.93 |
| Fiscal Year | 2024 | 2024 |
Income Statement Interpretations
Nova Ltd.
Nova Ltd. exhibited strong growth from 2020 to 2024, with revenue increasing by nearly 150% and net income rising over 280%. Margins remained robust, with a gross margin of 57.57% and a net margin of 27.33% in 2024, both rated favorable. The latest year showed revenue growth of 29.8%, with steady margin improvements and a 34.4% increase in EPS, signaling solid operational efficiency.
Silicon Laboratories Inc.
Silicon Laboratories saw a moderate 14.4% revenue increase over the period, but net income declined sharply by over 1600%. Its 2024 gross margin stood at 53.42%, favorable, but EBIT and net margins were negative, reflecting operational losses. The most recent year experienced a 25.3% revenue drop and significant deterioration in profitability metrics, highlighting challenges in cost control and earnings stability.
Which one has the stronger fundamentals?
Nova Ltd. demonstrates stronger fundamentals, supported by consistent revenue and net income growth alongside favorable margins and profitability improvements. Conversely, Silicon Laboratories struggles with declining earnings and negative net margins despite decent gross margin levels. The stark contrast in income statement performance over the recent period favors Nova Ltd. in terms of financial health and operational efficiency.
Financial Ratios Comparison
The table below presents a side-by-side comparison of key financial ratios for Nova Ltd. (NVMI) and Silicon Laboratories Inc. (SLAB) based on their most recent fiscal year data for 2024.
| Ratios | Nova Ltd. (NVMI) | Silicon Laboratories Inc. (SLAB) |
|---|---|---|
| ROE | 19.8% | -17.7% |
| ROIC | 13.4% | -14.7% |
| P/E | 31.2 | -21.5 |
| P/B | 6.18 | 3.81 |
| Current Ratio | 2.32 | 6.15 |
| Quick Ratio | 1.92 | 5.07 |
| D/E (Debt-to-Equity) | 0.25 | 0.014 |
| Debt-to-Assets | 17.0% | 1.3% |
| Interest Coverage | 116.2 | -126.3 |
| Asset Turnover | 0.48 | 0.48 |
| Fixed Asset Turnover | 5.06 | 4.42 |
| Payout ratio | 0 | 0 |
| Dividend yield | 0 | 0 |
Interpretation of the Ratios
Nova Ltd.
Nova Ltd. shows predominantly strong financial ratios, with favorable net margin at 27.33% and return on equity near 19.81%, indicating efficient profitability and capital use. The company’s liquidity and leverage ratios, such as a current ratio of 2.32 and debt-to-equity of 0.25, are also solid. However, valuation multiples like PE at 31.2 and PB at 6.18 appear stretched. Nova Ltd. does not pay dividends, likely due to its reinvestment strategy or growth focus, with no dividend yield reported.
Silicon Laboratories Inc.
Silicon Laboratories Inc. displays weak profitability metrics, including a negative net margin of -32.69% and return on equity at -17.69%, indicating operational challenges. Despite a strong quick ratio of 5.07 and minimal debt-to-assets at 1.27%, the company suffers from negative interest coverage and asset turnover issues. It also does not pay dividends, which may reflect ongoing investments in research and development or a growth phase. Its PE ratio is negative, consistent with losses.
Which one has the best ratios?
Comparing both companies, Nova Ltd. holds the advantage with a majority of favorable ratios reflecting profitability, sound liquidity, and manageable leverage. Silicon Laboratories Inc. faces significant profitability and coverage challenges, with a higher proportion of unfavorable ratios. Overall, Nova Ltd.’s financial health appears stronger based on the ratio evaluations provided.
Strategic Positioning
This section compares the strategic positioning of Nova Ltd. and Silicon Laboratories Inc., including market position, key segments, and exposure to technological disruption:
Nova Ltd.
- Market leader in semiconductor process control systems with notable competitive pressure in NASDAQ semiconductors.
- Focused on metrology platforms for semiconductor manufacturing processes, serving logic, foundry, and memory sectors.
- Exposure centered on semiconductor process control technology with limited information on disruption risks.
Silicon Laboratories Inc.
- Fabless semiconductor company facing competitive pressure in analog-intensive mixed-signal markets.
- Diversified segments including IoT, industrial automation, commercial electronics, and smart metering.
- Exposure to IoT and mixed-signal analog technologies, vulnerable to rapid innovation cycles.
Nova Ltd. vs Silicon Laboratories Inc. Positioning
Nova Ltd. concentrates on semiconductor process control metrology, targeting integrated circuit manufacturers, while Silicon Laboratories offers diversified analog and IoT solutions across multiple industries. Nova’s focus may limit market breadth but provides specialized expertise; Silicon Labs’ broader exposure spreads risk but faces diverse competitive dynamics.
Which has the best competitive advantage?
Based on MOAT evaluation, Nova Ltd. shows slightly favorable value creation with growing profitability, while Silicon Laboratories exhibits a very unfavorable trend with declining returns, indicating Nova currently holds a stronger competitive advantage.
Stock Comparison
The stock price trajectories of Nova Ltd. (NVMI) and Silicon Laboratories Inc. (SLAB) over the past year reveal significant bullish momentum, with Nova Ltd. exhibiting notably higher gains and accelerating upward movement compared to Silicon Laboratories.
Trend Analysis
Nova Ltd.’s stock showed a strong bullish trend over the past 12 months with a 168.54% price increase and accelerating gains, reaching a high of 434.55. Volatility was elevated, with a standard deviation of 55.86.
Silicon Laboratories’ stock also followed a bullish path, rising 14.91% over the same period with acceleration noted. Its price fluctuated less, reflected by a standard deviation of 14.15 and a high of 155.33.
Comparing the two, Nova Ltd. delivered the highest market performance with a markedly larger price increase and stronger acceleration than Silicon Laboratories over the past year.
Target Prices
The consensus target prices for Nova Ltd. and Silicon Laboratories Inc. reflect moderate upside potential compared to current market prices.
| Company | Target High | Target Low | Consensus |
|---|---|---|---|
| Nova Ltd. | 390 | 335 | 362.5 |
| Silicon Laboratories Inc. | 165 | 130 | 151.67 |
Analysts expect Nova Ltd. shares to trade below the current price of $434.55, suggesting caution, while Silicon Laboratories Inc. targets are slightly above the current $152.82, indicating modest growth potential.
Analyst Opinions Comparison
This section compares analysts’ ratings and grades for Nova Ltd. and Silicon Laboratories Inc.:
Rating Comparison
NVMI Rating
- Rating: B-, considered Very Favorable by analysts
- Discounted Cash Flow Score: 3, Moderate status
- ROE Score: 4, Favorable status
- ROA Score: 5, Very Favorable status
- Debt To Equity Score: 1, Very Unfavorable status
- Overall Score: 3, Moderate status
SLAB Rating
- Rating: C-, also considered Very Favorable
- Discounted Cash Flow Score: 2, Moderate status
- ROE Score: 1, Very Unfavorable status
- ROA Score: 1, Very Unfavorable status
- Debt To Equity Score: 1, Very Unfavorable status
- Overall Score: 1, Very Unfavorable status
Which one is the best rated?
Based strictly on provided data, Nova Ltd. (NVMI) is better rated overall with a B- rating and stronger ROE and ROA scores, despite both companies having very unfavorable debt-to-equity scores. Silicon Laboratories Inc. (SLAB) has a lower overall score and weaker profitability metrics.
Scores Comparison
Here is a comparison of the Altman Z-Score and Piotroski Score for Nova Ltd. and Silicon Laboratories Inc.:
NVMI Scores
- Altman Z-Score: 7.76, indicating a safe zone with low bankruptcy risk.
- Piotroski Score: 7, classified as strong financial health.
SLAB Scores
- Altman Z-Score: 18.02, strongly in the safe zone, very low bankruptcy risk.
- Piotroski Score: 4, considered average financial strength.
Which company has the best scores?
Based on the provided scores, SLAB shows a higher Altman Z-Score indicating greater financial stability, while NVMI exhibits a stronger Piotroski Score, reflecting better overall financial health.
Grades Comparison
Here is a comparison of the latest reliable grades for Nova Ltd. and Silicon Laboratories Inc.:
Nova Ltd. Grades
The following table summarizes recent grades assigned to Nova Ltd. by reputable grading companies.
| 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 |
Overall, Nova Ltd. shows a consistent pattern of buy-oriented ratings with no recent downgrades.
Silicon Laboratories Inc. Grades
Below is a summary of recent grades for Silicon Laboratories Inc. from established grading firms.
| Grading Company | Action | New Grade | Date |
|---|---|---|---|
| Morgan Stanley | Maintain | Equal Weight | 2025-08-06 |
| Susquehanna | Maintain | Neutral | 2025-08-06 |
| Barclays | Maintain | Equal Weight | 2025-08-05 |
| Susquehanna | Maintain | Neutral | 2025-07-22 |
| Stifel | Maintain | Buy | 2025-07-18 |
| Keybanc | Maintain | Overweight | 2025-07-08 |
| Benchmark | Maintain | Buy | 2025-05-27 |
| Benchmark | Maintain | Buy | 2025-05-14 |
| Susquehanna | Maintain | Neutral | 2025-05-14 |
| Needham | Maintain | Buy | 2025-05-14 |
Silicon Laboratories Inc. presents a mixed set of ratings, with several neutral and equal weight grades alongside buy and overweight opinions.
Which company has the best grades?
Nova Ltd. has received predominantly buy and outperform grades with no neutral ratings, indicating stronger analyst confidence compared to Silicon Laboratories Inc., which has a greater proportion of neutral and equal weight grades. This difference may affect investor perception of growth potential and risk between the two.
Strengths and Weaknesses
Below is a comparative overview of Nova Ltd. (NVMI) and Silicon Laboratories Inc. (SLAB) based on key financial and strategic criteria as of 2026.
| Criterion | Nova Ltd. (NVMI) | Silicon Laboratories Inc. (SLAB) |
|---|---|---|
| Diversification | Focused product revenue stream (~538M USD in 2024) | Narrower segment focus with declining revenues (~339M USD in 2024) |
| Profitability | High net margin (27.33%), favorable ROE (19.81%), positive ROIC (13.39%) | Negative net margin (-32.69%), negative ROE (-17.69%), negative ROIC (-14.71%) |
| Innovation | Growing ROIC trend indicating improving operational efficiency | Declining ROIC trend signaling challenges in profitability and innovation impact |
| Global presence | Stable with moderate asset turnover (0.48) and strong fixed asset turnover (5.06) | Similar asset turnover (0.48) but weaker interest coverage and financial stability |
| Market Share | Favorable financial ratios overall (64% favorable) support competitive stance | Unfavorable overall financial health (64% unfavorable ratios) weakens market position |
Key takeaways: Nova Ltd. demonstrates improving profitability and efficient capital use with a slightly favorable moat, making it a more stable investment option. Silicon Laboratories faces significant profitability and value destruction challenges, reflected in its declining financial health and very unfavorable moat status.
Risk Analysis
Below is a comparison of key risks affecting Nova Ltd. (NVMI) and Silicon Laboratories Inc. (SLAB) as of 2024.
| Metric | Nova Ltd. (NVMI) | Silicon Laboratories Inc. (SLAB) |
|---|---|---|
| Market Risk | High beta 1.83, sensitive to semiconductor cycle fluctuations | Beta 1.55, exposed to IoT market volatility |
| Debt level | Low debt-to-equity 0.25, manageable leverage | Very low debt-to-equity 0.01, minimal financial risk |
| Regulatory Risk | Moderate, operates globally with some exposure to export controls | Moderate, US-based with global sales, subject to tech regulations |
| Operational Risk | Moderate, dependent on advanced semiconductor manufacturing processes | Moderate, reliant on product innovation in mixed-signal semiconductors |
| Environmental Risk | Low, industry impact moderate but increasing focus on sustainability | Low, similar semiconductor sector risks with growing environmental scrutiny |
| Geopolitical Risk | Elevated, exposure to Israel, Taiwan, China, and Korea | Moderate, US headquarters but global supply chain exposure |
The most impactful risk for Nova Ltd. is its elevated market risk due to a high beta and geopolitical exposure in key semiconductor hubs. Silicon Laboratories’ biggest concern lies in operational challenges and sustained negative profitability, reflecting in its unfavorable financial ratios. Both companies face moderate regulatory risks amid evolving tech and trade policies.
Which Stock to Choose?
Nova Ltd. (NVMI) shows a strong income evolution with a 29.83% revenue growth in 2024 and favorable profitability ratios, including a 27.33% net margin and 19.81% ROE. Its debt levels and liquidity ratios remain solid, supported by a very favorable overall rating of B-.
Silicon Laboratories Inc. (SLAB) experienced a 25.29% revenue decline in 2024, with unfavorable profitability metrics, such as a -32.69% net margin and -17.69% ROE. Despite low debt levels, its financial ratios and income statement evaluations are mostly unfavorable, though it holds a very favorable rating of C-.
Investors with a risk-tolerant or growth-oriented profile might find Nova Ltd.’s improving income and favorable financial ratios more appealing, while those seeking companies with stronger balance sheets but facing profitability challenges may view Silicon Laboratories differently. The ratings and income evaluations suggest a cautious interpretation depending on investment objectives.
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 Nova Ltd. and Silicon Laboratories Inc. to enhance your investment decisions:
