Comparing Valens Semiconductor (NYSE:VLN) & Ambarella (NASDAQ:AMBA)

Valens Semiconductor (NYSE:VLNGet Free Report) and Ambarella (NASDAQ:AMBAGet Free Report) are both computer and technology companies, but which is the better business? We will contrast the two companies based on the strength of their valuation, earnings, analyst recommendations, institutional ownership, dividends, profitability and risk.

Profitability

This table compares Valens Semiconductor and Ambarella’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%
Ambarella -19.42% -12.16% -9.59%

Earnings and Valuation

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

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Valens Semiconductor $70.62 million 1.63 -$31.58 million ($0.31) -3.60
Ambarella $390.70 million 5.45 -$75.86 million ($1.78) -27.33

Valens Semiconductor has higher earnings, but lower revenue than Ambarella. Ambarella 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, suggesting that its share price is 72% less volatile than the S&P 500. Comparatively, Ambarella has a beta of 1.95, suggesting that its share price is 95% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent ratings and target prices for Valens Semiconductor and Ambarella, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Valens Semiconductor 1 0 1 0 2.00
Ambarella 1 4 7 2 2.71

Valens Semiconductor currently has a consensus target price of $3.00, suggesting a potential upside of 169.06%. Ambarella has a consensus target price of $96.00, suggesting a potential upside of 97.33%. Given Valens Semiconductor’s higher possible upside, equities analysts plainly believe Valens Semiconductor is more favorable than Ambarella.

Insider and Institutional Ownership

33.9% of Valens Semiconductor shares are owned by institutional investors. Comparatively, 82.1% of Ambarella shares are owned by institutional investors. 58.9% of Valens Semiconductor shares are owned by insiders. Comparatively, 5.7% of Ambarella shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Summary

Ambarella beats Valens Semiconductor on 10 of the 15 factors compared between the two stocks.

About Valens Semiconductor

(Get Free Report)

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 Ambarella

(Get Free Report)

Ambarella, Inc. develops semiconductor solutions that enable high-definition (HD) and ultra HD compression, image signal processing, and artificial intelligence processing worldwide. The company's system-on-a-chip designs integrated HD video processing, image processing, artificial intelligence computer vision algorithms, audio processing, and system functions onto a single chip for delivering video and image quality, differentiated functionality, and low power consumption. Its solutions are used in automotive cameras, such as automotive video recorders, electronic mirrors, front advanced driver assistance system camera, cabin monitoring system and driver monitoring system camera, and central domain controllers for autonomous vehicle; enterprise and public class, and home security camera; and robotics and industrial application, including identification/authentication cameras, robotic products, and sensing cameras, as well as cameras for the enterprise, home, public spaces, and consumer leisure comprising wearable body cameras, sports action cameras, social media cameras, drones for capturing aerial video or photographs, video conferencing, and virtual reality applications. The company sells its solutions to original design manufacturers and original equipment manufacturers through its direct sales force and distributors. Ambarella, Inc. was incorporated in 2004 and is headquartered in Santa Clara, California.

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