Valens Semiconductor (NYSE:VLN – Get Free Report) and ASML (NASDAQ:ASML – Get Free Report) are both technology companies, but which is the better business? We will contrast the two businesses based on the strength of their institutional ownership, analyst recommendations, dividends, earnings, profitability, risk and valuation.
Institutional and Insider Ownership
33.9% of Valens Semiconductor shares are held by institutional investors. Comparatively, 26.1% of ASML shares are held by institutional investors. 58.9% of Valens Semiconductor shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.
Profitability
This table compares Valens Semiconductor and ASML’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% |
| ASML | 34.10% | 64.24% | 26.08% |
Analyst Recommendations
This is a summary of recent ratings for Valens Semiconductor and ASML, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Valens Semiconductor | 1 | 0 | 1 | 0 | 2.00 |
| ASML | 3 | 2 | 17 | 3 | 2.80 |
Valens Semiconductor currently has a consensus price target of $4.00, indicating a potential upside of 144.65%. ASML has a consensus price target of $2,079.12, indicating a potential upside of 24.08%. Given Valens Semiconductor’s higher probable upside, equities research analysts plainly believe Valens Semiconductor is more favorable than ASML.
Risk and Volatility
Valens Semiconductor has a beta of 1.3, meaning that its stock price is 30% more volatile than the S&P 500. Comparatively, ASML has a beta of 1.77, meaning that its stock price is 77% more volatile than the S&P 500.
Earnings and Valuation
This table compares Valens Semiconductor and ASML”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 | 2.51 | -$31.58 million | ($0.32) | -5.11 |
| ASML | $36.95 billion | 17.48 | $10.87 billion | $40.62 | 41.25 |
ASML has higher revenue and earnings than Valens Semiconductor. Valens Semiconductor is trading at a lower price-to-earnings ratio than ASML, indicating that it is currently the more affordable of the two stocks.
Summary
ASML beats Valens Semiconductor on 11 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 ASML
ASML Holding N.V. develops, produces, markets, sells, and services advanced semiconductor equipment systems for chipmakers. It offers advanced semiconductor equipment systems, including lithography, metrology, and inspection systems. The company also provides extreme ultraviolet lithography systems; and deep ultraviolet lithography systems comprising immersion and dry lithography solutions to manufacture various range of semiconductor nodes and technologies. In addition, it offers metrology and inspection systems, including YieldStar optical metrology systems to assess the quality of patterns on the wafers; and HMI electron beam solutions to locate and analyze individual chip defects. Further, the company provides computational lithography solutions, and lithography systems and control software solutions; and refurbishes and upgrades lithography systems, as well as offers customer support and related services. It operates in Japan, South Korea, Singapore, Taiwan, China, rest of Asia, the Netherlands, rest of Europe, the Middle East, Africa, and the United States. The company was formerly known as ASM Lithography Holding N.V. and changed its name to ASML Holding N.V. in 2001. ASML Holding N.V. was founded in 1984 and is headquartered in Veldhoven, the Netherlands.
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