Financial Contrast: SEALSQ (NASDAQ:LAES) versus Valens Semiconductor (NYSE:VLN)

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

Insider & Institutional Ownership

1.3% of SEALSQ shares are held by institutional investors. Comparatively, 33.9% of Valens Semiconductor shares are held by institutional investors. 58.9% of Valens Semiconductor shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
SEALSQ	N/A	N/A	N/A
Valens Semiconductor	-44.38%	-22.21%	-18.27%

Valuation and Earnings

This table compares SEALSQ and Valens Semiconductor”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
SEALSQ	$10.98 million	72.54	-$21.20 million	N/A	N/A
Valens Semiconductor	$67.89 million	2.63	-$36.58 million	($0.29)	-6.01

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

Volatility & Risk

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

Analyst Ratings

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

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

Valens Semiconductor has a consensus price target of $3.00, suggesting a potential upside of 72.02%. Given Valens Semiconductor’s stronger consensus rating and higher probable upside, analysts plainly believe Valens Semiconductor is more favorable than SEALSQ.

Summary

Valens Semiconductor beats SEALSQ on 8 of the 13 factors compared between the two stocks.

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.

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.