Head to Head Survey: Ichor (NASDAQ:ICHR) versus Valens Semiconductor (NYSE:VLN)

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

Earnings and Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Valens Semiconductor	$70.62 million	1.95	-$31.58 million	($0.31)	-4.31
Ichor	$947.65 million	1.51	-$52.78 million	($1.54)	-26.90

Valens Semiconductor has higher earnings, but lower revenue than Ichor. Ichor is trading at a lower price-to-earnings ratio than Valens Semiconductor, indicating that it is currently the more affordable of the two stocks.

Volatility and Risk

Valens Semiconductor has a beta of 0.28, indicating that its stock price is 72% less volatile than the S&P 500. Comparatively, Ichor has a beta of 1.76, indicating that its stock price is 76% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent ratings and price targets for Valens Semiconductor and Ichor, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Valens Semiconductor	1	0	1	0	2.00
Ichor	1	3	5	0	2.44

Valens Semiconductor presently has a consensus price target of $3.00, suggesting a potential upside of 124.72%. Ichor has a consensus price target of $39.57, suggesting a potential downside of 4.49%. Given Valens Semiconductor’s higher probable upside, equities analysts plainly believe Valens Semiconductor is more favorable than Ichor.

Insider & Institutional Ownership

33.9% of Valens Semiconductor shares are owned by institutional investors. Comparatively, 94.8% of Ichor shares are owned by institutional investors. 58.9% of Valens Semiconductor shares are owned by company insiders. Comparatively, 1.9% of Ichor shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Valens Semiconductor	-44.72%	-27.00%	-21.71%
Ichor	-5.57%	-1.28%	-0.90%

Summary

Ichor beats Valens Semiconductor on 8 of the 14 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 Ichor

Ichor Holdings, Ltd. engages in the design, engineering, and manufacture of fluid delivery subsystems and components for semiconductor capital equipment in the United States and internationally. It primarily offers gas and chemical delivery systems and subsystems that are used in the manufacturing of semiconductor devices. The company's gas delivery subsystems deliver, monitor, and control gases used in semiconductor manufacturing processes, such as etch and deposition; and chemical delivery subsystems blend and dispense the reactive liquid chemistries used in semiconductor manufacturing processes comprising chemical-mechanical planarization, electroplating, and cleaning. In addition, it manufactures precision machined components, weldments, electron beam, laser-welded components, precision vacuum and hydrogen brazing, surface treatment technologies, and other proprietary products. The company primarily markets its products to equipment OEMs in the semiconductor equipment market in Japan. Ichor Holdings, Ltd. was incorporated in 1999 and is headquartered in Fremont, California.