Valens Semiconductor (NYSE:VLN) versus Qorvo (NASDAQ:QRVO) Financial Review

Valens Semiconductor (NYSE:VLN – Get Free Report) and Qorvo (NASDAQ:QRVO – Get Free Report) are both technology companies, but which is the superior business? We will contrast the two businesses based on the strength of their dividends, earnings, profitability, institutional ownership, analyst recommendations, valuation and risk.

Volatility & Risk

Valens Semiconductor has a beta of 1.24, indicating that its stock price is 24% more volatile than the S&P 500. Comparatively, Qorvo has a beta of 1.42, indicating that its stock price is 42% more volatile than the S&P 500.

Valuation and Earnings

This table compares Valens Semiconductor and Qorvo”s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Valens Semiconductor $71.70 million 2.14 -$31.58 million ($0.32) -4.42
Qorvo $3.64 billion 2.76 $338.99 million $4.31 26.49

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

Analyst Ratings

This is a breakdown of current recommendations and price targets for Valens Semiconductor and Qorvo, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Valens Semiconductor 1 0 1 0 2.00
Qorvo 1 11 3 0 2.13

Valens Semiconductor presently has a consensus target price of $4.00, indicating a potential upside of 182.69%. Qorvo has a consensus target price of $91.45, indicating a potential downside of 19.90%. Given Valens Semiconductor’s higher possible upside, analysts clearly believe Valens Semiconductor is more favorable than Qorvo.

Insider and Institutional Ownership

33.9% of Valens Semiconductor shares are held by institutional investors. Comparatively, 88.6% of Qorvo shares are held by institutional investors. 58.9% of Valens Semiconductor shares are held by company insiders. Comparatively, 0.5% of Qorvo shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Profitability

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

Net Margins Return on Equity Return on Assets
Valens Semiconductor -45.23% -30.58% -23.97%
Qorvo 10.95% 17.23% 10.06%

Summary

Qorvo beats Valens Semiconductor on 12 of the 14 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 Qorvo

(Get Free Report)

Qorvo, Inc. engages in development and commercialization of technologies and products for wireless, wired, and power markets. It operates through three segments: High Performance Analog (HPA), Connectivity and Sensors Group (CSG), and Advanced Cellular Group (ACG). The HPA segment supplies radio frequency and power management solutions for automotive, defense and aerospace, cellular infrastructure, broadband, and other markets. The CSG segment supplies connectivity and sensor components and systems featuring various technologies, such as UWB, Matter, Bluetooth Low Energy, Zigbee, Thread, Wi-Fi, cellular IoT, and MEMS-/BAW-based sensors. It serves markets, such as smart home, industrial automation, automotive, smartphones, wearables, gaming, and industrial and enterprise access points. The ACG segment supplies cellular RF solutions for smartphones, wearables, laptops, tablets, and various other devices. The company also offers foundry services for defense primes and other defense and aerospace customers. The company sells its products directly to original equipment manufacturers and original design manufacturers, as well as through a network of sales representative firms and distributors. It operates in the United States, China, other Asian countries, Taiwan, and Europe. The company was founded in 1957 and is headquartered in Greensboro, North Carolina.

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