Analyzing Valens Semiconductor (NYSE:VLN) and SUMCO (OTCMKTS:SUOPY)

SUMCO (OTCMKTS:SUOPY) and Valens Semiconductor (NYSE:VLN) are both technology companies, but which is the superior investment? We will contrast the two businesses based on the strength of their earnings, risk, analyst recommendations, valuation, institutional ownership, dividends and profitability.

Analyst Ratings

This is a breakdown of recent recommendations for SUMCO and Valens Semiconductor, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
SUMCO	0	1	0	1	3.00
Valens Semiconductor	1	0	1	0	2.00

Valens Semiconductor has a consensus price target of $4.00, suggesting a potential upside of 121.61%. Given Valens Semiconductor’s higher possible upside, analysts plainly believe Valens Semiconductor is more favorable than SUMCO.

Risk and Volatility

SUMCO has a beta of 1.52, indicating that its stock price is 52% more volatile than the S&P 500. Comparatively, Valens Semiconductor has a beta of 1.37, indicating that its stock price is 37% more volatile than the S&P 500.

Profitability

This table compares SUMCO and Valens Semiconductor’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
SUMCO	-6.60%	-4.18%	-2.37%
Valens Semiconductor	-45.23%	-30.58%	-23.97%

Earnings and Valuation

This table compares SUMCO and Valens Semiconductor”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
SUMCO	$2.74 billion	2.72	-$78.72 million	($1.03)	-41.31
Valens Semiconductor	$70.62 million	2.77	-$31.58 million	($0.32)	-5.64

Valens Semiconductor has lower revenue, but higher earnings than SUMCO. SUMCO is trading at a lower price-to-earnings ratio than Valens Semiconductor, indicating that it is currently the more affordable of the two stocks.

Insider & Institutional Ownership

0.0% of SUMCO shares are held by institutional investors. Comparatively, 33.9% of Valens Semiconductor shares are held by institutional investors. 58.9% of Valens Semiconductor shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Summary

Valens Semiconductor beats SUMCO on 8 of the 15 factors compared between the two stocks.

About SUMCO

Sumco Corporation manufactures and sells silicon wafers for the semiconductor industry in Japan, the United States, China, Taiwan, Korea, and internationally. It provides monocrystalline ingots, as well as polished, annealed, epitaxial, junction isolated, silicon-on-insulator, and reclaimed polished wafers. The company was formerly known as Sumitomo Mitsubishi Silicon Corp. and changed its name to Sumco Corporation in August 2005. Sumco Corporation was incorporated in 1999 and is headquartered in Tokyo, Japan.

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.