Valens Semiconductor (VLN) and Its Peers Critical Contrast

Valens Semiconductor (NYSE:VLN) is one of 221 public companies in the “Semiconductors & Semiconductor Equipment” industry, but how does it compare to its peers? We will compare Valens Semiconductor to related businesses based on the strength of its risk, dividends, institutional ownership, valuation, profitability, analyst recommendations and earnings.

Valuation & Earnings

This table compares Valens Semiconductor and its peers revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Valens Semiconductor	$70.62 million	-$31.58 million	-4.64
Valens Semiconductor Competitors	$7.33 billion	$2.49 billion	8.92

Valens Semiconductor’s peers have higher revenue and earnings than Valens Semiconductor. Valens Semiconductor is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.

Profitability

This table compares Valens Semiconductor and its peers’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Valens Semiconductor	-45.23%	-30.58%	-23.97%
Valens Semiconductor Competitors	-1,280.34%	-126.29%	-3.97%

Institutional & Insider Ownership

33.9% of Valens Semiconductor shares are held by institutional investors. Comparatively, 54.8% of shares of all “Semiconductors & Semiconductor Equipment” companies are held by institutional investors. 58.9% of Valens Semiconductor shares are held by insiders. Comparatively, 11.5% of shares of all “Semiconductors & Semiconductor Equipment” companies are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of current ratings and target prices for Valens Semiconductor and its peers, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Valens Semiconductor	1	0	1	0	2.00
Valens Semiconductor Competitors	3488	12304	25693	991	2.57

Valens Semiconductor presently has a consensus target price of $4.00, indicating a potential upside of 169.36%. As a group, “Semiconductors & Semiconductor Equipment” companies have a potential upside of 39.43%. Given Valens Semiconductor’s higher possible upside, analysts plainly believe Valens Semiconductor is more favorable than its peers.

Risk & Volatility

Valens Semiconductor has a beta of 1.24, suggesting that its stock price is 24% more volatile than the S&P 500. Comparatively, Valens Semiconductor’s peers have a beta of 2.80, suggesting that their average stock price is 180% more volatile than the S&P 500.

Summary

Valens Semiconductor peers beat Valens Semiconductor on 8 of the 12 factors compared.

Valens Semiconductor Company Profile

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.