Financial Analysis: Infineon Technologies (OTCMKTS:IFNNY) versus SEALSQ (NASDAQ:LAES)

SEALSQ (NASDAQ:LAES) and Infineon Technologies (OTCMKTS:IFNNY) are both computer and technology companies, but which is the better stock? We will compare the two businesses based on the strength of their profitability, earnings, analyst recommendations, dividends, risk, institutional ownership and valuation.

Analyst Recommendations

This is a breakdown of current recommendations and price targets for SEALSQ and Infineon Technologies, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
SEALSQ	1	1	1	0	2.00
Infineon Technologies	0	1	0	2	3.33

SEALSQ currently has a consensus price target of $7.00, suggesting a potential upside of 71.36%. Given SEALSQ’s higher probable upside, equities research analysts clearly believe SEALSQ is more favorable than Infineon Technologies.

Institutional & Insider Ownership

1.3% of SEALSQ shares are held by institutional investors. Comparatively, 0.2% of Infineon Technologies shares are held by institutional investors. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Volatility & Risk

SEALSQ has a beta of -12.15, indicating that its stock price is 1,315% less volatile than the S&P 500. Comparatively, Infineon Technologies has a beta of 1.78, indicating that its stock price is 78% more volatile than the S&P 500.

Earnings and Valuation

This table compares SEALSQ and Infineon Technologies”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
SEALSQ	$10.98 million	66.00	-$21.20 million	N/A	N/A
Infineon Technologies	$16.21 billion	3.93	$1.12 billion	$0.91	53.57

Infineon Technologies has higher revenue and earnings than SEALSQ.

Profitability

This table compares SEALSQ and Infineon Technologies’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
SEALSQ	N/A	N/A	N/A
Infineon Technologies	7.57%	10.87%	6.41%

Summary

Infineon Technologies beats SEALSQ on 8 of the 12 factors compared between the two stocks.

About SEALSQ

SEALSQ Corp, together with its subsidiaries, designs, develops, and markets semiconductor chips in Europe, the Middle East, Africa, North America, the Asia Pacific, and Latin America. It offers semiconductors, such as VaultIC secure elements, secure arm platform, and smart card reader chips; identity provisioning services, such as IoT device provisioning and chip provisioning; and managed PKI for IoT solutions and trust services. The company provides device-to-cloud authentication, device attestation for matter, GSMA root certificate, device-to-device authentication, data protection, anti-counterfeiting and brand protection, security access, device ID provisioning, identity lifecycle management, and satellite IoT connectivity solutions. Its products are used in various applications, such as smart energy, smart home, automotive EV charging, consumer IoT, aerospace and military, telecommunications, logistics, medical, luxury, and other industrial applications. SEALSQ Corp was founded in 2022 and is based in Cointrin, Switzerland.

About Infineon Technologies

Infineon Technologies AG designs, develops, manufactures, and markets semiconductors and semiconductor-based solutions worldwide. Its Automotive segment offers automotive microcontrollers; 3D ToF, magnetic, and pressure sensors; discrete power semiconductors; IGBT modules; industrial microcontrollers; power and memory ICs; transceivers; diodes, MOSEFTs, and modules; and voltage regulators for use in assistance and safety systems, comfort electronics, infotainment, powertrain, and security products. The company’s Green Industrial Power segment provides bare dies, discrete IGBTs, and driver ICs; SiC diodes, MOSFETs, and modules; and IGBT modules for home appliances, industrial drives, industrial power supplies, industrial robotics, industrial vehicles, and traction, as well as for energy generation, storage, and transmission. Its Power & Sensor Systems segment offers chips for gas and pressure sensors, and MEMS microphones; 3D ToF sensors; control ICs; discrete low-, mid-, and high-voltage power MOSFET; customized chips; GaN power switches; GPS low-noise amplifiers; low-voltage and high-voltage driver ICs; radar sensor ICs; RF antenna switches and power transistors; transient voltage suppressor diodes; SiC diode and MOSFETs; and USB controllers for use in audio amplifiers, automotive electronics, BLDC motors, cellular communications infrastructure, electric vehicle charging stations, human machine interaction, IoT, LED and conventional lighting systems, microinverter, mobile devices, power management, and special applications. The company’s Connected Secure Systems segment provides connectivity solutions, embedded security controllers, microcontrollers, and security controllers for authentication, automotive, consumer electronics, government identification document, IoT, mobile communication, payment system, ticketing, access control, and computing applications. Infineon Technologies AG was founded in 1999 and is headquartered in Neubiberg, Germany.