Head to Head Analysis: NXP Semiconductors (NASDAQ:NXPI) and Valens Semiconductor (NYSE:VLN)

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

Profitability

This table compares Valens Semiconductor and NXP Semiconductors’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Valens Semiconductor	-41.94%	-14.05%	-12.51%
NXP Semiconductors	19.90%	31.45%	12.56%

Analyst Recommendations

This is a summary of current recommendations and price targets for Valens Semiconductor and NXP Semiconductors, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Valens Semiconductor	0	0	2	1	3.33
NXP Semiconductors	0	3	16	1	2.90

Valens Semiconductor currently has a consensus price target of $4.00, indicating a potential upside of 87.44%. NXP Semiconductors has a consensus price target of $263.50, indicating a potential upside of 56.11%. Given Valens Semiconductor’s stronger consensus rating and higher probable upside, analysts plainly believe Valens Semiconductor is more favorable than NXP Semiconductors.

Volatility & Risk

Valens Semiconductor has a beta of 0.33, indicating that its stock price is 67% less volatile than the S&P 500. Comparatively, NXP Semiconductors has a beta of 1.4, indicating that its stock price is 40% more volatile than the S&P 500.

Valuation & Earnings

This table compares Valens Semiconductor and NXP Semiconductors”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	$57.86 million	3.92	-$19.66 million	($0.35)	-6.10
NXP Semiconductors	$12.61 billion	3.39	$2.51 billion	$9.73	17.35

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

Insider and Institutional Ownership

33.9% of Valens Semiconductor shares are owned by institutional investors. Comparatively, 90.5% of NXP Semiconductors shares are owned by institutional investors. 58.9% of Valens Semiconductor shares are owned by insiders. Comparatively, 0.1% of NXP Semiconductors shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Summary

NXP Semiconductors beats Valens Semiconductor on 10 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 NXP Semiconductors

NXP Semiconductors N.V. offers various semiconductor products. The company's product portfolio includes microcontrollers; application processors, including i.MX application processors, and i.MX 8 and 9 family of applications processors; communication processors; wireless connectivity solutions, such as near field communications, ultra-wideband, Bluetooth low-energy, Zigbee, and Wi-Fi and Wi-Fi/Bluetooth integrated SoCs; analog and interface devices; radio frequency power amplifiers; and security controllers, as well as semiconductor-based environmental and inertial sensors, including pressure, inertial, magnetic, and gyroscopic sensors. Its products are used in various applications, including automotive, industrial and Internet of Things, mobile, and communication infrastructure. The company markets its products to various original equipment manufacturers, contract manufacturers, and distributors. It operates in China, the Netherlands, the United States, Singapore, Germany, Japan, South Korea, Taiwan, and internationally. N.V. was incorporated in 2006 and is headquartered in Eindhoven, the Netherlands.