Navitas Semiconductor (NASDAQ:NVTS – Get Free Report) and Valens Semiconductor (NYSE:VLN – Get Free Report) are both small-cap computer and technology companies, but which is the better stock? We will compare the two companies based on the strength of their dividends, institutional ownership, analyst recommendations, profitability, valuation, earnings and risk.
Insider & Institutional Ownership
46.1% of Navitas Semiconductor shares are held by institutional investors. Comparatively, 33.9% of Valens Semiconductor shares are held by institutional investors. 31.8% of Navitas Semiconductor shares are held by insiders. Comparatively, 58.9% of Valens Semiconductor shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.
Profitability
This table compares Navitas Semiconductor and Valens Semiconductor’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Navitas Semiconductor | -84.61% | -23.64% | -20.18% |
| Valens Semiconductor | -41.94% | -14.05% | -12.51% |
Earnings & Valuation
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Navitas Semiconductor | $83.30 million | 4.47 | -$145.43 million | ($0.45) | -4.34 |
| Valens Semiconductor | $57.86 million | 4.37 | -$19.66 million | ($0.35) | -6.79 |
Valens Semiconductor has lower revenue, but higher earnings than Navitas Semiconductor. Valens Semiconductor is trading at a lower price-to-earnings ratio than Navitas Semiconductor, indicating that it is currently the more affordable of the two stocks.
Volatility and Risk
Navitas Semiconductor has a beta of 2.24, meaning that its stock price is 124% more volatile than the S&P 500. Comparatively, Valens Semiconductor has a beta of 0.28, meaning that its stock price is 72% less volatile than the S&P 500.
Analyst Ratings
This is a breakdown of current ratings for Navitas Semiconductor and Valens Semiconductor, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Navitas Semiconductor | 1 | 1 | 5 | 0 | 2.57 |
| Valens Semiconductor | 0 | 0 | 2 | 1 | 3.33 |
Navitas Semiconductor currently has a consensus price target of $3.54, suggesting a potential upside of 80.85%. Valens Semiconductor has a consensus price target of $4.00, suggesting a potential upside of 68.42%. Given Navitas Semiconductor’s higher probable upside, equities research analysts clearly believe Navitas Semiconductor is more favorable than Valens Semiconductor.
Summary
Valens Semiconductor beats Navitas Semiconductor on 8 of the 15 factors compared between the two stocks.
About Navitas Semiconductor
Navitas Semiconductor Corporation designs, develops, and markets gallium nitride power integrated circuits, silicon carbide, associated high-speed silicon system controllers, and digital isolators used in power conversion and charging. The company’s products are used in mobile, consumer, data center, solar, electric vehicle, industrial motor drive, smart grid, and transportation applications. It operates in the United States, Europe, China, rest of Asia, and internationally. The company was founded in 2013 and is based in Torrance, 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.
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