Valens Semiconductor (NYSE:VLN) vs. Impinj (NASDAQ:PI) Head-To-Head Analysis

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Impinj	-3.45%	8.15%	2.83%
Valens Semiconductor	-44.38%	-23.12%	-18.88%

Risk & Volatility

Impinj has a beta of 1.5, suggesting that its share price is 50% more volatile than the S&P 500. Comparatively, Valens Semiconductor has a beta of 0.25, suggesting that its share price is 75% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent ratings for Impinj and Valens Semiconductor, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Impinj	1	2	7	1	2.73
Valens Semiconductor	1	0	1	0	2.00

Impinj currently has a consensus target price of $226.33, indicating a potential upside of 31.90%. Valens Semiconductor has a consensus target price of $3.00, indicating a potential upside of 113.52%. Given Valens Semiconductor’s higher probable upside, analysts plainly believe Valens Semiconductor is more favorable than Impinj.

Institutional and Insider Ownership

33.9% of Valens Semiconductor shares are owned by institutional investors. 51.0% of Impinj shares are owned by insiders. Comparatively, 58.9% of Valens Semiconductor shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Valuation & Earnings

This table compares Impinj and Valens Semiconductor”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Impinj	$366.09 million	14.11	$40.84 million	($0.44)	-389.98
Valens Semiconductor	$57.86 million	2.49	-$36.58 million	($0.29)	-4.84

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

Summary

Impinj beats Valens Semiconductor on 10 of the 15 factors compared between the two stocks.

About Impinj

Impinj, Inc. operates a cloud connectivity platform in the Americas, the Asia Pacific, Europe, the Middle East, and Africa. Its platform wirelessly connects items and delivers data about the connected items to business and consumer applications. The company’s platform comprises endpoint ICs, a miniature radios-on-a-chip that attaches to a host item and includes a number to identify the item. Its platform also consists of systems products that consists of reader ICs, readers, and gateways to wirelessly provide power to and communicate bidirectionally with endpoint ICs on host items, as well as to read, write, authenticate, and engage the endpoint ICs on those items; and software and algorithms that enable its partners to solve enterprise business problems, such as retail self-checkout and loss prevention. The company primarily serves retail, supply chain and logistics, automotive, aviation, banking, datacenters, food, healthcare, industrial and manufacturing, linen and uniform tracking, sports, and travel industries through original equipment and device manufacturers, tag service bureaus, systems integrators, value-added resellers, independent software vendors, and other solution partners. Impinj, Inc. was incorporated in 2000 and is headquartered in Seattle, Washington.

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.