Silvaco Group (NASDAQ:SVCO – Get Free Report) and Valens Semiconductor (NYSE:VLN – Get Free Report) are both small-cap computer and technology companies, but which is the better business? We will compare the two companies based on the strength of their dividends, valuation, earnings, analyst recommendations, profitability, institutional ownership and risk.
Profitability
This table compares Silvaco Group and Valens Semiconductor’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Silvaco Group | -65.34% | -23.01% | -14.07% |
| Valens Semiconductor | -44.72% | -27.00% | -21.71% |
Earnings & Valuation
This table compares Silvaco Group and Valens Semiconductor”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Silvaco Group | $63.06 million | 3.02 | -$41.21 million | ($1.41) | -4.30 |
| Valens Semiconductor | $70.62 million | 1.86 | -$31.58 million | ($0.31) | -4.11 |
Valens Semiconductor has higher revenue and earnings than Silvaco Group. Silvaco Group is trading at a lower price-to-earnings ratio than Valens Semiconductor, indicating that it is currently the more affordable of the two stocks.
Analyst Recommendations
This is a breakdown of current recommendations and price targets for Silvaco Group and Valens Semiconductor, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Silvaco Group | 1 | 0 | 3 | 1 | 2.80 |
| Valens Semiconductor | 1 | 0 | 1 | 0 | 2.00 |
Silvaco Group presently has a consensus price target of $9.33, suggesting a potential upside of 54.02%. Valens Semiconductor has a consensus price target of $3.00, suggesting a potential upside of 135.29%. Given Valens Semiconductor’s higher possible upside, analysts plainly believe Valens Semiconductor is more favorable than Silvaco Group.
Institutional & Insider Ownership
33.9% of Valens Semiconductor shares are owned by institutional investors. 38.4% of Silvaco Group shares are owned by insiders. Comparatively, 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 company will outperform the market over the long term.
Volatility and Risk
Silvaco Group has a beta of 3.48, suggesting that its share price is 248% more volatile than the S&P 500. Comparatively, Valens Semiconductor has a beta of 0.28, suggesting that its share price is 72% less volatile than the S&P 500.
Summary
Valens Semiconductor beats Silvaco Group on 8 of the 15 factors compared between the two stocks.
About Silvaco Group
Silvaco Group Inc. is a provider of TCAD, EDA software and SIP solutions which enable semiconductor design and AI through software and innovation. The company’s solutions are used for process and device development across display, power devices, automotive, memory, high performance compute, photonics, internet of things and 5G/6G mobile markets for complex SoC design. Silvaco Group Inc. is headquartered in Santa Clara, California.
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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