Valens Semiconductor (NYSE:VLN – Get Free Report) and SkyWater Technology (NASDAQ:SKYT – Get Free Report) are both small-cap computer and technology companies, but which is the better stock? We will compare the two companies based on the strength of their institutional ownership, dividends, earnings, profitability, analyst recommendations, valuation and risk.
Institutional and Insider Ownership
33.9% of Valens Semiconductor shares are owned by institutional investors. Comparatively, 70.0% of SkyWater Technology shares are owned by institutional investors. 58.9% of Valens Semiconductor shares are owned by company insiders. Comparatively, 37.8% of SkyWater Technology shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.
Valuation and Earnings
This table compares Valens Semiconductor and SkyWater Technology”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Valens Semiconductor | $57.86 million | 2.49 | -$36.58 million | ($0.29) | -4.84 |
| SkyWater Technology | $346.59 million | 2.58 | -$6.79 million | $2.58 | 7.15 |
SkyWater Technology has higher revenue and earnings than Valens Semiconductor. Valens Semiconductor is trading at a lower price-to-earnings ratio than SkyWater Technology, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Valens Semiconductor and SkyWater Technology’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Valens Semiconductor | -44.38% | -23.12% | -18.88% |
| SkyWater Technology | 36.36% | -4.96% | -1.05% |
Analyst Recommendations
This is a summary of current ratings and recommmendations for Valens Semiconductor and SkyWater Technology, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Valens Semiconductor | 1 | 0 | 1 | 0 | 2.00 |
| SkyWater Technology | 1 | 1 | 5 | 0 | 2.57 |
Valens Semiconductor presently has a consensus price target of $3.00, indicating a potential upside of 113.52%. SkyWater Technology has a consensus price target of $21.50, indicating a potential upside of 16.59%. Given Valens Semiconductor’s higher probable upside, research analysts clearly believe Valens Semiconductor is more favorable than SkyWater Technology.
Volatility & Risk
Valens Semiconductor has a beta of 0.25, meaning that its share price is 75% less volatile than the S&P 500. Comparatively, SkyWater Technology has a beta of 3.5, meaning that its share price is 250% more volatile than the S&P 500.
Summary
SkyWater Technology beats Valens Semiconductor on 12 of the 14 factors compared between the two stocks.
About Valens Semiconductor
Valens Semiconductor Ltd. engages in the provision of semiconductor products for the audio-video and automotive industries. The company offers HDBaseT technology, which enables the simultaneous delivery of ultra-high-definition digital video and audio, Ethernet, USB, control signals, and power through a single long-reach cable. It also provides audio-video solutions for the enterprise, education, industrial, digital signage, industrial, and medical markets. In addition, it offers automotive chipsets that support advanced driver-assistance systems, automotive data solutions, infotainment, telematics, and backbone connectivity. The company’s product series include VS100, VS2000, VS3000, VS6000, VS7000, Valens USB and power extender, Valens VS6320, USB 3.2 Gen1 extension chipset, VA6000, and VA7000. It has a collaboration with iCatch Technology to develop a 360-degree multi-camera videoconferencing solution. The company operates in Israel, China, Hong Kong, the United States, Japan, Germany, Hungary, and internationally. Valens Semiconductor Ltd. is headquartered in Hod Hasharon, Israel.
About SkyWater Technology
SkyWater Technology, Inc., together with its subsidiaries, operates as a pure-play technology foundry that engages in the provision of semiconductor development, manufacturing, and packaging services in the United States. The company offers engineering and process development support services to co-create technologies with customers; and semiconductor manufacturing services for various silicon-based analog and mixed-signal, micro-electromechanical systems, and rad-hard integrated circuits. It serves customers operating in the computation, aerospace and defense, automotive, bio-health, consumer, and industrial sectors. The company was incorporated in 2016 and is headquartered in Bloomington, Minnesota.
Receive News & Ratings for Valens Semiconductor Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Valens Semiconductor and related companies with MarketBeat.com's FREE daily email newsletter.
