Valens Semiconductor (NYSE:VLN) and IQE (OTCMKTS:IQEPF) Head to Head Analysis

Valens Semiconductor (NYSE:VLN) and IQE (OTCMKTS:IQEPF) are both small-cap computer and technology companies, but which is the superior stock? We will compare the two companies based on the strength of their risk, valuation, profitability, earnings, dividends, analyst recommendations and institutional ownership.

Earnings and Valuation

This table compares Valens Semiconductor and IQE”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Valens Semiconductor	$57.86 million	3.57	-$36.58 million	($0.32)	-6.08
IQE	$150.84 million	0.71	-$48.79 million	N/A	N/A

Valens Semiconductor has higher earnings, but lower revenue than IQE.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Valens Semiconductor	-49.80%	-21.26%	-17.67%
IQE	N/A	N/A	N/A

Risk & Volatility

Valens Semiconductor has a beta of 0.26, suggesting that its stock price is 74% less volatile than the S&P 500. Comparatively, IQE has a beta of 1.49, suggesting that its stock price is 49% more volatile than the S&P 500.

Insider & Institutional Ownership

33.9% of Valens Semiconductor shares are held by institutional investors. 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 is poised for long-term growth.

Analyst Ratings

This is a breakdown of current recommendations for Valens Semiconductor and IQE, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Valens Semiconductor	0	0	1	1	3.50
IQE	0	0	0	0	0.00

Valens Semiconductor presently has a consensus target price of $4.00, indicating a potential upside of 105.66%. Given Valens Semiconductor’s stronger consensus rating and higher probable upside, analysts clearly believe Valens Semiconductor is more favorable than IQE.

Summary

Valens Semiconductor beats IQE on 8 of the 13 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 IQE

IQE plc, together with its subsidiaries, develops, manufactures, and sells advanced semiconductor materials. It operates through three segments: Wireless, Photonics, and CMOS++. The company manufactures and sells compound semiconductor materials for the wireless market which includes radio frequency devices for wireless communications, and photonics market, that includes applications that transmit and sense visible and infrared lights, as well as advanced semiconductor materials related to silicon. It operates in the United States, rest of the Americas, France, Germany, Israel, the United Kingdom, rest of Europe, the Middle East, Africa, the People's Republic of China, Japan, Taiwan, and rest of the Asia-Pacific. The company was founded in 1988 and is headquartered in Cardiff, the United Kingdom.