Head-To-Head Analysis: NOVONIX (NASDAQ:NVX) & KLA (NASDAQ:KLAC)

KLA (NASDAQ:KLAC) and NOVONIX (NASDAQ:NVX) are both computer and technology companies, but which is the superior business? We will contrast the two companies based on the strength of their analyst recommendations, valuation, risk, institutional ownership, dividends, profitability and earnings.

Risk & Volatility

KLA has a beta of 1.5, indicating that its share price is 50% more volatile than the S&P 500. Comparatively, NOVONIX has a beta of 2.5, indicating that its share price is 150% more volatile than the S&P 500.

Earnings and Valuation

This table compares KLA and NOVONIX”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
KLA	$12.16 billion	20.65	$4.06 billion	$35.33	54.39
NOVONIX	$5.62 million	27.42	-$92.72 million	N/A	N/A

KLA has higher revenue and earnings than NOVONIX.

Insider & Institutional Ownership

86.7% of KLA shares are held by institutional investors. Comparatively, 0.1% of NOVONIX shares are held by institutional investors. 91.5% of KLA shares are held by insiders. Comparatively, 23.7% of NOVONIX shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Analyst Ratings

This is a breakdown of current ratings and price targets for KLA and NOVONIX, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
KLA	0	10	20	0	2.67
NOVONIX	1	0	0	0	1.00

KLA presently has a consensus target price of $1,842.19, indicating a potential downside of 4.14%. Given KLA’s stronger consensus rating and higher probable upside, equities analysts plainly believe KLA is more favorable than NOVONIX.

Profitability

This table compares KLA and NOVONIX’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
KLA	35.66%	91.89%	29.21%
NOVONIX	N/A	N/A	N/A

Summary

KLA beats NOVONIX on 10 of the 12 factors compared between the two stocks.

About KLA

KLA Corporation, together with its subsidiaries, engages in the design, manufacture, and marketing of process control, process-enabling, and yield management solutions for the semiconductor and related electronics industries worldwide. It operates through three segments: Semiconductor Process Control; Specialty Semiconductor Process; and PCB and Component Inspection. The company offers inspection and review tools to identify, locate, characterize, review, and analyze defects on various surfaces of patterned and unpatterned wafers; metrology systems that are used to measure pattern dimensions, film thickness, film stress, layer-to-layer alignment, pattern placement, surface topography, and electro-optical properties for wafers; chemical process control equipment; wired and wireless sensor wafers and reticles; wafer defect inspection, review, and metrology systems; reticle inspection and metrology systems; and semiconductor software solutions that provide run-time process control, defect excursion identification, process corrections, and defect classification to accelerate yield learning rates and reduce production risk. It also provides etch, plasma dicing, deposition, and other wafer processing technologies and solutions for the semiconductor and microelectronics industry. In addition, the company offers direct imaging, inspection, optical shaping, inkjet and additive printing, UV laser drilling, and computer-aided manufacturing and engineering solutions for the PCB market; inspection and electrical testing systems to identify and classify defects, as well as systems to repair defects for the display market; and inspection and metrology systems for quality control and yield improvement in advanced and traditional semiconductor packaging markets. The company was formerly known as KLA-Tencor Corporation and changed its name to KLA Corporation in July 2019. KLA Corporation was incorporated in 1975 and is headquartered in Milpitas, California.

About NOVONIX

NOVONIX Limited provides battery materials and development technology for battery manufacturers, materials companies, automotive original equipment manufacturers (OEMs), and consumer electronics manufacturers in North America, Asia, Australia, and Europe. It operates through Battery Materials and Battery Technology segments. The Battery Materials segment develops and manufactures battery anode materials. The Battery Technology segment develops battery cell testing equipment, performs consulting services, and carries out research and development in battery development. The company is involved in the investment and real estate borrowing activities; and offers battery technology, battery testing hardware equipment, and battery testing and development consulting services. The company was formerly known as Graphitecorp Limited and changed its name to NOVONIX Limited in July 2017. NOVONIX Limited was incorporated in 2012 and is based in Brisbane, Australia.