SkyWater Technology (NASDAQ:SKYT) & Valens Semiconductor (NYSE:VLN) Head to Head Comparison

SkyWater Technology (NASDAQ:SKYT) and Valens Semiconductor (NYSE:VLN) are both small-cap computer and technology companies, but which is the superior stock? We will compare the two businesses based on the strength of their dividends, risk, analyst recommendations, profitability, institutional ownership, earnings and valuation.

Analyst Recommendations

This is a summary of recent ratings and price targets for SkyWater Technology and Valens Semiconductor, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
SkyWater Technology	1	1	5	0	2.57
Valens Semiconductor	1	0	1	0	2.00

SkyWater Technology currently has a consensus price target of $21.50, indicating a potential downside of 4.15%. Valens Semiconductor has a consensus price target of $3.00, indicating a potential upside of 92.93%. Given Valens Semiconductor’s higher possible upside, analysts plainly believe Valens Semiconductor is more favorable than SkyWater Technology.

Risk & Volatility

SkyWater Technology has a beta of 3.49, indicating that its share price is 249% 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.

Earnings & Valuation

This table compares SkyWater Technology and Valens Semiconductor”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
SkyWater Technology	$342.27 million	3.18	-$6.79 million	$2.58	8.69
Valens Semiconductor	$57.86 million	2.75	-$36.58 million	($0.29)	-5.36

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

Insider and Institutional Ownership

70.0% of SkyWater Technology shares are held by institutional investors. Comparatively, 33.9% of Valens Semiconductor shares are held by institutional investors. 37.9% of SkyWater Technology shares are held by company insiders. Comparatively, 58.9% of Valens Semiconductor shares are held by company 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.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
SkyWater Technology	36.36%	-4.96%	-1.05%
Valens Semiconductor	-44.38%	-23.12%	-18.88%

Summary

SkyWater Technology beats Valens Semiconductor on 12 of the 14 factors compared between the two stocks.

About SkyWater Technology

SkyWater Technology, Inc., together with its subsidiaries, operates as a pure-play technology foundry that engages in the provision of semiconductor development, manufacturing, and packaging services in the United States. The company offers engineering and process development support services to co-create technologies with customers; and semiconductor manufacturing services for various silicon-based analog and mixed-signal, micro-electromechanical systems, and rad-hard integrated circuits. It serves customers operating in the computation, aerospace and defense, automotive, bio-health, consumer, and industrial sectors. The company was incorporated in 2016 and is headquartered in Bloomington, Minnesota.

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.