Valens Semiconductor (NYSE:VLN) & Applied Materials (NASDAQ:AMAT) Head-To-Head Contrast

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

Institutional and Insider Ownership

80.6% of Applied Materials shares are owned by institutional investors. Comparatively, 33.9% of Valens Semiconductor shares are owned by institutional investors. 0.2% of Applied Materials 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 hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Analyst Ratings

This is a breakdown of current ratings and target prices for Applied Materials and Valens Semiconductor, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Applied Materials	0	13	21	0	2.62
Valens Semiconductor	1	0	1	0	2.00

Applied Materials presently has a consensus price target of $246.78, suggesting a potential downside of 12.38%. Valens Semiconductor has a consensus price target of $3.00, suggesting a potential upside of 92.93%. Given Valens Semiconductor’s higher possible upside, analysts clearly believe Valens Semiconductor is more favorable than Applied Materials.

Valuation & Earnings

This table compares Applied Materials 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
Applied Materials	$28.37 billion	7.87	$7.00 billion	$8.68	32.45
Valens Semiconductor	$57.86 million	2.75	-$36.58 million	($0.29)	-5.36

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

Risk & Volatility

Applied Materials has a beta of 1.67, indicating that its stock price is 67% more volatile than the S&P 500. Comparatively, Valens Semiconductor has a beta of 0.25, indicating that its stock price is 75% less volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Applied Materials	24.67%	39.26%	22.13%
Valens Semiconductor	-44.38%	-23.12%	-18.88%

Summary

Applied Materials beats Valens Semiconductor on 12 of the 14 factors compared between the two stocks.

About Applied Materials

Applied Materials, Inc. engages in the provision of manufacturing equipment, services, and software to the semiconductor, display, and related industries. The company operates through three segments: Semiconductor Systems, Applied Global Services, and Display and Adjacent Markets. The Semiconductor Systems segment develops, manufactures, and sells various manufacturing equipment that is used to fabricate semiconductor chips or integrated circuits. This segment also offers various technologies, including epitaxy, ion implantation, oxidation/nitridation, rapid thermal processing, physical vapor deposition, chemical vapor deposition, chemical mechanical planarization, electrochemical deposition, atomic layer deposition, etching, and selective deposition and removal, as well as metrology and inspection tools. The Applied Global Services segment provides integrated solutions to optimize equipment and fab performance and productivity comprising spares, upgrades, services, remanufactured earlier generation equipment, and factory automation software for semiconductor, display, and other products. The Display and Adjacent Markets segment offers products for manufacturing liquid crystal displays; organic light-emitting diodes; and other display technologies for TVs, monitors, laptops, personal computers, electronic tablets, smart phones, and other consumer-oriented devices. It operates in the United States, China, Korea, Taiwan, Japan, Southeast Asia, and Europe. The company was incorporated in 1967 and is headquartered in Santa Clara, California.

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.