Head-To-Head Comparison: Valens Semiconductor (VLN) versus Its Peers

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 similar businesses based on the strength of its analyst recommendations, earnings, institutional ownership, profitability, risk, valuation and dividends.

Institutional & Insider Ownership

33.9% of Valens Semiconductor shares are owned by institutional investors. Comparatively, 54.8% of shares of all “Semiconductors & Semiconductor Equipment” companies are owned by institutional investors. 58.9% of Valens Semiconductor shares are owned by insiders. Comparatively, 11.5% of shares of all “Semiconductors & Semiconductor Equipment” companies are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

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	-1,266.87%	-126.22%	-3.89%

Analyst Recommendations

This is a breakdown of current recommendations and price targets for Valens Semiconductor and its peers, as provided 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	3513	12381	25825	1003	2.57

Valens Semiconductor presently has a consensus price target of $4.00, indicating a potential upside of 158.90%. As a group, “Semiconductors & Semiconductor Equipment” companies have a potential upside of 34.17%. Given Valens Semiconductor’s higher probable upside, equities research analysts clearly believe Valens Semiconductor is more favorable than its peers.

Valuation and Earnings

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

	Gross Revenue	Net Income	Price/Earnings Ratio
Valens Semiconductor	$70.62 million	-$31.58 million	-4.83
Valens Semiconductor Competitors	$39.42 billion	$2.53 billion	10.19

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.

Risk and Volatility

Valens Semiconductor has a beta of 1.24, meaning that its share price is 24% more volatile than the S&P 500. Comparatively, Valens Semiconductor’s peers have a beta of 2.79, meaning that their average share price is 179% more volatile than the S&P 500.

Summary

Valens Semiconductor peers beat Valens Semiconductor on 9 of the 13 factors compared.

Valens Semiconductor Company Profile

Valens Semiconductor Ltd. is a fabless semiconductor company headquartered in Hod Hasharon, Israel. Founded in 2006, the company develops high-speed connectivity solutions for the audio-video and automotive markets, with an emphasis on transmitting data reliably over longer distances and through challenging environments. Valens is best known for its HDBaseT technology, which enables the distribution of high-definition video, audio, power and control signals over standard cabling. Its products serve professional audio-video applications such as conference rooms, classrooms, digital signage and residential entertainment systems.