Head-To-Head Comparison: SEALSQ (NASDAQ:LAES) and Valens Semiconductor (NYSE:VLN)

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

Volatility & Risk

Valens Semiconductor has a beta of 0.25, suggesting that its share price is 75% less volatile than the S&P 500. Comparatively, SEALSQ has a beta of -12.95, suggesting that its share price is 1,395% less volatile than the S&P 500.

Institutional & Insider Ownership

33.9% of Valens Semiconductor shares are owned by institutional investors. Comparatively, 1.3% of SEALSQ shares are owned by institutional investors. 58.9% of Valens Semiconductor shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Valens Semiconductor	-44.38%	-23.12%	-18.88%
SEALSQ	N/A	N/A	N/A

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for Valens Semiconductor and SEALSQ, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Valens Semiconductor	1	0	1	1	2.67
SEALSQ	1	0	0	0	1.00

Valens Semiconductor presently has a consensus target price of $3.00, indicating a potential upside of 98.02%. Given Valens Semiconductor’s stronger consensus rating and higher possible upside, analysts plainly believe Valens Semiconductor is more favorable than SEALSQ.

Earnings and Valuation

This table compares Valens Semiconductor and SEALSQ”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Valens Semiconductor	$57.86 million	2.68	-$36.58 million	($0.29)	-5.22
SEALSQ	$10.98 million	67.21	-$21.20 million	N/A	N/A

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

Summary

Valens Semiconductor beats SEALSQ 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 SEALSQ

SEALSQ Corp, together with its subsidiaries, designs, develops, and markets semiconductor chips in Europe, the Middle East, Africa, North America, the Asia Pacific, and Latin America. It offers semiconductors, such as VaultIC secure elements, secure arm platform, and smart card reader chips; identity provisioning services, such as IoT device provisioning and chip provisioning; and managed PKI for IoT solutions and trust services. The company provides device-to-cloud authentication, device attestation for matter, GSMA root certificate, device-to-device authentication, data protection, anti-counterfeiting and brand protection, security access, device ID provisioning, identity lifecycle management, and satellite IoT connectivity solutions. Its products are used in various applications, such as smart energy, smart home, automotive EV charging, consumer IoT, aerospace and military, telecommunications, logistics, medical, luxury, and other industrial applications. SEALSQ Corp was founded in 2022 and is based in Cointrin, Switzerland.