Contrasting Power Integrations (NASDAQ:POWI) & Valens Semiconductor (NYSE:VLN)

Power Integrations (NASDAQ:POWIGet Rating) and Valens Semiconductor (NYSE:VLNGet Rating) are both computer and technology companies, but which is the better business? We will contrast the two businesses based on the strength of their analyst recommendations, earnings, dividends, valuation, institutional ownership, profitability and risk.

Analyst Ratings

This is a summary of current ratings for Power Integrations and Valens Semiconductor, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Power Integrations 0 1 4 0 2.80
Valens Semiconductor 0 0 6 0 3.00

Power Integrations currently has a consensus price target of $106.80, indicating a potential upside of 26.95%. Valens Semiconductor has a consensus price target of $11.80, indicating a potential upside of 210.53%. Given Valens Semiconductor’s stronger consensus rating and higher probable upside, analysts plainly believe Valens Semiconductor is more favorable than Power Integrations.

Risk & Volatility

Power Integrations has a beta of 1.02, suggesting that its stock price is 2% more volatile than the S&P 500. Comparatively, Valens Semiconductor has a beta of 1.55, suggesting that its stock price is 55% more volatile than the S&P 500.

Institutional and Insider Ownership

98.1% of Power Integrations shares are owned by institutional investors. Comparatively, 51.3% of Valens Semiconductor shares are owned by institutional investors. 1.6% of Power Integrations shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Profitability

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

Net Margins Return on Equity Return on Assets
Power Integrations 24.01% 19.88% 17.87%
Valens Semiconductor N/A -14.64% -8.63%

Valuation and Earnings

This table compares Power Integrations and Valens Semiconductor’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Power Integrations $703.28 million 6.98 $164.41 million $2.80 30.05
Valens Semiconductor $70.68 million 5.28 -$26.53 million N/A N/A

Power Integrations has higher revenue and earnings than Valens Semiconductor.

Summary

Power Integrations beats Valens Semiconductor on 8 of the 12 factors compared between the two stocks.

Power Integrations Company Profile (Get Rating)

Power Integrations, Inc. designs, develops, manufactures, and markets analog and mixed-signal integrated circuits (ICs), and other electronic components and circuitry used in high-voltage power conversion worldwide. The company provides a range of alternating current to direct current power conversion products that address power supply ranging from less than one watt of output to approximately 500 watts of output for mobile-device chargers, consumer appliances, utility meters, LCD monitors, main and standby power supplies for desktop computers and TVs, LED lighting, and various other consumer and industrial applications, as well as power conversion in high-power applications comprising industrial motors, solar and wind-power systems, electric vehicles, and high-voltage DC transmission systems. It also offers high-voltage diodes; high-voltage gate-driver products used to operate high-voltage switches, such as insulated-gate bipolar transistors and silicon-carbide MOSFETs under the SCALE and SCALE-2 product-family names; and SCALE-iDriver for use in powertrain and charging applications for electric vehicles. In addition, the company provides motor-driver ICs for use in refrigerator compressors, ceiling fans, and air purifiers, as well as pumps, fans, and blowers used in consumer appliances, such as dishwashers and laundry machines. It serves communications, computer, consumer, and industrial markets. The company sells its products to original equipment manufacturers and merchant power supply manufacturers through direct sales force, as well as a network of independent sales representatives and distributors. Power Integrations, Inc. was incorporated in 1988 and is headquartered in San Jose, California.

Valens Semiconductor Company Profile (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.

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