SmartKem (NASDAQ:SMTK – Get Free Report) and Valens Semiconductor (NYSE:VLN – Get Free Report) are both small-cap computer and technology companies, but which is the superior business? We will contrast the two businesses based on the strength of their institutional ownership, dividends, risk, earnings, analyst recommendations, valuation and profitability.
Risk and Volatility
SmartKem has a beta of 5.07, indicating that its share price is 407% more volatile than the S&P 500. Comparatively, Valens Semiconductor has a beta of 0.25, indicating that its share price is 75% less volatile than the S&P 500.
Institutional and Insider Ownership
33.9% of Valens Semiconductor shares are owned by institutional investors. 8.7% of SmartKem shares are owned by company insiders. Comparatively, 58.9% of Valens Semiconductor shares are owned by company 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.
Earnings & Valuation
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| SmartKem | $80,000.00 | 115.89 | -$10.33 million | ($2.27) | -0.67 |
| Valens Semiconductor | $57.86 million | 2.63 | -$36.58 million | ($0.29) | -5.12 |
SmartKem has higher earnings, but lower revenue than Valens Semiconductor. Valens Semiconductor is trading at a lower price-to-earnings ratio than SmartKem, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares SmartKem and Valens Semiconductor’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| SmartKem | -6,262.36% | -610.88% | -199.55% |
| Valens Semiconductor | -44.38% | -23.12% | -18.88% |
Analyst Ratings
This is a breakdown of recent recommendations for SmartKem and Valens Semiconductor, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| SmartKem | 1 | 0 | 0 | 0 | 1.00 |
| Valens Semiconductor | 1 | 0 | 1 | 0 | 2.00 |
Valens Semiconductor has a consensus target price of $3.00, indicating a potential upside of 102.02%. Given Valens Semiconductor’s stronger consensus rating and higher possible upside, analysts clearly believe Valens Semiconductor is more favorable than SmartKem.
Summary
Valens Semiconductor beats SmartKem on 10 of the 14 factors compared between the two stocks.
About SmartKem
SmartKem, Inc. develops electronics transistors using its proprietary advanced semiconductor materials. Its technology can be used in a range of applications including next generation MicroLED, LCD and AMOLED displays, as well as advanced computer and AI chip packaging, and a new type of sensor. The company was founded on September 21, 2018 and is headquartered in Blackley, the United Kingdom.
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.
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