Valens Semiconductor (NYSE:VLN – Get Free Report) and Everspin Tech (NASDAQ:MRAM – Get Free Report) are both small-cap technology companies, but which is the superior stock? We will compare the two businesses based on the strength of their risk, dividends, institutional ownership, valuation, analyst recommendations, profitability and earnings.
Volatility and Risk
Valens Semiconductor has a beta of 1.3, suggesting that its stock price is 30% more volatile than the S&P 500. Comparatively, Everspin Tech has a beta of 1.88, suggesting that its stock price is 88% more volatile than the S&P 500.
Profitability
This table compares Valens Semiconductor and Everspin Tech’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Valens Semiconductor | -45.23% | -30.58% | -23.97% |
| Everspin Tech | -14.28% | 9.67% | 7.98% |
Valuation and Earnings
This table compares Valens Semiconductor and Everspin Tech”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Valens Semiconductor | $71.70 million | 2.27 | -$31.58 million | ($0.32) | -4.70 |
| Everspin Tech | $69.06 million | 4.80 | -$590,000.00 | ($0.40) | -34.02 |
Everspin Tech has lower revenue, but higher earnings than Valens Semiconductor. Everspin Tech is trading at a lower price-to-earnings ratio than Valens Semiconductor, indicating that it is currently the more affordable of the two stocks.
Insider & Institutional Ownership
33.9% of Valens Semiconductor shares are held by institutional investors. Comparatively, 44.7% of Everspin Tech shares are held by institutional investors. 58.9% of Valens Semiconductor shares are held by company insiders. Comparatively, 6.3% of Everspin Tech shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.
Analyst Recommendations
This is a summary of recent recommendations and price targets for Valens Semiconductor and Everspin Tech, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Valens Semiconductor | 1 | 0 | 1 | 0 | 2.00 |
| Everspin Tech | 1 | 0 | 2 | 0 | 2.33 |
Valens Semiconductor currently has a consensus target price of $4.00, suggesting a potential upside of 165.78%. Everspin Tech has a consensus target price of $22.00, suggesting a potential upside of 61.65%. Given Valens Semiconductor’s higher possible upside, equities analysts plainly believe Valens Semiconductor is more favorable than Everspin Tech.
Summary
Everspin Tech beats Valens Semiconductor on 9 of the 14 factors compared between the two stocks.
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.
About Everspin Tech
Everspin Technologies, Inc. engages in the manufacture and sale of magnetoresistive random access memory (MRAM) products in the United States, Japan, Hong Kong, Germany, Singapore, China, Canada, and internationally. It offers Toggle MRAM, spin-transfer torque MRAM, and tunnel magneto resistance sensor products, as well as foundry services for MRAM products. The company provides its products for applications, including industrial, medical, automotive/transportation, aerospace, and data center markets. It serves original equipment manufacturers, contract manufacturers, and original design manufacturers through a direct sales channel, and a network of representatives and distributors. Everspin Technologies, Inc. was incorporated in 2008 and is headquartered in Chandler, Arizona.
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