Contrasting Meta Materials (NASDAQ:MMAT) & Valens Semiconductor (NYSE:VLN)

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

Analyst Ratings

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Meta Materials	0	0	1	0	3.00
Valens Semiconductor	0	0	6	0	3.00

Valens Semiconductor has a consensus price target of $11.80, suggesting a potential upside of 210.94%. Given Valens Semiconductor’s higher probable upside, analysts plainly believe Valens Semiconductor is more favorable than Meta Materials.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Meta Materials	-999.55%	-18.65%	-14.64%
Valens Semiconductor	N/A	-14.64%	-8.63%

Institutional and Insider Ownership

21.1% of Meta Materials shares are held by institutional investors. Comparatively, 51.3% of Valens Semiconductor shares are held by institutional investors. 17.5% of Meta Materials shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Volatility and Risk

Meta Materials has a beta of 1.47, meaning that its share price is 47% more volatile than the S&P 500. Comparatively, Valens Semiconductor has a beta of 1.55, meaning that its share price is 55% more volatile than the S&P 500.

Earnings and Valuation

This table compares Meta Materials and Valens Semiconductor’s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Meta Materials	$4.08 million	103.23	-$91.00 million	-0.26	-5.46
Valens Semiconductor	$70.68 million	5.27	-$26.53 million	N/A	N/A

Valens Semiconductor has higher revenue and earnings than Meta Materials.

Summary

Valens Semiconductor beats Meta Materials on 9 of the 11 factors compared between the two stocks.

About Meta Materials (Get Rating)

Meta Materials Inc. invents, designs, develops, and manufactures various functional materials and nanocomposites. Its products include metaAIR, a laser glare protection eyewear; NANOWEB, a transparent conductive film; holoOPTIX, a holographic optical element; glucoWISE, a non-invasive glucose measurement device; and metaSURFACE, which allows an enhancement in signal to noise ratio of up to 40 times for magnetic resonance imaging scans. The company also develops and produces nano-optic structures and color-shifting foils that are used in authentication and brand protection applications in various markets, including banknotes, secure government documents, and commercial branding, as well as engages in the research, development, and manufacture of smart materials. Its customers are OEM providers in various industries, including aerospace, automotive, consumer electronics, communications, energy, banknote and brand security, and medical devices. The company was formerly known as Torchlight Energy Resources, Inc. and changed its name to Meta Materials Inc. in June 2021. Meta Materials Inc. was incorporated in 2007 and is headquartered in Dartmouth, Canada.

About Valens Semiconductor (Get Rating)

Valens Semiconductor Ltd. engages in the provision of semiconductor products that enables high-speed video and data transmission for the audio-video and automotive industries. It 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. The company offers audio-video solutions for the enterprise, education, digital signage, medical and residential, and industrial markets; and automotive solutions, which provide chipsets that support advanced driver-assistance systems, automated driving systems, infotainment, telecommunications, and basic connectivity. It serves customers through distributors and representatives in Israel, China, Hong Kong, the United States, Mexico, Japan, and internationally. The company was incorporated in 2006 and is headquartered in Hod Hasharon, Israel.