ASE Technology (NYSE:ASX – Get Free Report) and Valens Semiconductor (NYSE:VLN – Get Free Report) are both computer and technology companies, but which is the superior business? We will contrast the two companies based on the strength of their valuation, earnings, profitability, analyst recommendations, risk, institutional ownership and dividends.
Profitability
This table compares ASE Technology and Valens Semiconductor’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| ASE Technology | 6.31% | 12.00% | 4.99% |
| Valens Semiconductor | -44.38% | -23.12% | -18.88% |
Earnings and Valuation
This table compares ASE Technology and Valens Semiconductor”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| ASE Technology | $20.73 billion | 2.51 | $1.31 billion | $0.58 | 40.46 |
| Valens Semiconductor | $57.86 million | 2.66 | -$36.58 million | ($0.29) | -5.19 |
ASE Technology has higher revenue and earnings than Valens Semiconductor. Valens Semiconductor is trading at a lower price-to-earnings ratio than ASE Technology, indicating that it is currently the more affordable of the two stocks.
Insider and Institutional Ownership
6.8% of ASE Technology shares are owned by institutional investors. Comparatively, 33.9% of Valens Semiconductor shares are owned by institutional investors. 22.9% of ASE Technology shares are owned by company insiders. Comparatively, 58.9% of Valens Semiconductor shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.
Analyst Recommendations
This is a breakdown of recent ratings and price targets for ASE Technology and Valens Semiconductor, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| ASE Technology | 1 | 1 | 1 | 0 | 2.00 |
| Valens Semiconductor | 1 | 0 | 1 | 0 | 2.00 |
Valens Semiconductor has a consensus price target of $3.00, suggesting a potential upside of 99.34%. Given Valens Semiconductor’s higher probable upside, analysts plainly believe Valens Semiconductor is more favorable than ASE Technology.
Volatility & Risk
ASE Technology has a beta of 1.48, meaning that its share price is 48% more volatile than the S&P 500. Comparatively, Valens Semiconductor has a beta of 0.26, meaning that its share price is 74% less volatile than the S&P 500.
Summary
ASE Technology beats Valens Semiconductor on 8 of the 12 factors compared between the two stocks.
About ASE Technology
ASE Technology Holding Co., Ltd., together with its subsidiaries, provides semiconductors packaging and testing, and electronic manufacturing services in the United States, Taiwan, Asia, Europe, and internationally. It develops, constructs, sells, leases, and manages real estate properties; produces substrates; offers information software, equipment leasing, investment advisory, and warehousing management services; commercial complex, after-sales, and support services; manages parking lot services; processes and sells computer and communication peripherals, electronic components, telecommunications equipment, and motherboards; and imports and exports goods and technology. ASE Technology Holding Co., Ltd. was founded in 1984 and is based in Kaohsiung, Taiwan.
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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