Canadian Solar (NASDAQ:CSIQ – Get Free Report) and Valens Semiconductor (NYSE:VLN – Get Free Report) are both small-cap oils/energy companies, but which is the superior stock? We will compare the two companies based on the strength of their analyst recommendations, profitability, earnings, dividends, valuation, risk and institutional ownership.
Volatility and Risk
Canadian Solar has a beta of 1.26, indicating that its stock price is 26% more volatile than the S&P 500. Comparatively, Valens Semiconductor has a beta of 0.32, indicating that its stock price is 68% less volatile than the S&P 500.
Analyst Recommendations
This is a breakdown of current recommendations for Canadian Solar and Valens Semiconductor, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Canadian Solar | 1 | 4 | 4 | 0 | 2.33 |
| Valens Semiconductor | 0 | 0 | 2 | 0 | 3.00 |
Institutional and Insider Ownership
52.4% of Canadian Solar shares are held by institutional investors. Comparatively, 33.9% of Valens Semiconductor shares are held by institutional investors. 21.5% of Canadian Solar 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, endowments and hedge funds believe a company is poised for long-term growth.
Valuation and Earnings
This table compares Canadian Solar 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 | |
| Canadian Solar | $7.88 billion | 0.12 | $274.19 million | $3.88 | 3.90 |
| Valens Semiconductor | $84.16 million | 2.95 | -$19.66 million | ($0.19) | -12.55 |
Canadian Solar has higher revenue and earnings than Valens Semiconductor. Valens Semiconductor is trading at a lower price-to-earnings ratio than Canadian Solar, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Canadian Solar and Valens Semiconductor’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Canadian Solar | 3.60% | 8.31% | 2.47% |
| Valens Semiconductor | -23.36% | -12.05% | -10.81% |
Summary
Canadian Solar beats Valens Semiconductor on 11 of the 14 factors compared between the two stocks.
About Canadian Solar
Canadian Solar Inc., together with its subsidiaries, designs, develops, manufactures, and sells solar ingots, wafers, cells, modules, and other solar power and battery storage products in Asia, the Americas, Europe, and internationally. The company operates through two segments, Canadian Solar Inc. (CSI) Solar and Global Energy. The CSI Solar segment offers standard solar modules and battery storage solutions, as well as solar system kits that are a ready-to-install packages comprising inverters, racking systems, and other accessories; and engineering, procurement, and construction (EPC) services. The Global Energy segment engages in the development, construction, maintenance, and sale of solar and battery storage projects; operation of solar power plants; and sale of electricity. This segment also provides operation and maintenance (O&M) services, including monitoring, inspections, repair, and replacement of plant equipment; and site management and administrative support services for solar projects, as well as asset management services. As of January 31, 2023, this segment had a fleet of solar power plants in operation with an aggregate capacity of approximately 574 MWp. The company serves distributors, system integrators, project developers, and installers/EPC companies. It sells its products primarily under its Canadian Solar brand name; and on an OEM basis. Canadian Solar Inc. was incorporated in 2001 and is based in Guelph, Canada.
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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