Analyzing Valens Semiconductor (NYSE:VLN) and Monolithic Power Systems (NASDAQ:MPWR)

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

Valuation and Earnings

This table compares Valens Semiconductor and Monolithic Power Systems”s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Valens Semiconductor $63.13 million 5.32 -$19.66 million ($0.25) -12.64
Monolithic Power Systems $2.04 billion 14.11 $427.37 million $8.87 66.50

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

Analyst Ratings

This is a summary of current ratings for Valens Semiconductor and Monolithic Power Systems, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Valens Semiconductor 0 0 1 1 3.50
Monolithic Power Systems 0 2 10 0 2.83

Valens Semiconductor currently has a consensus price target of $4.00, indicating a potential upside of 26.58%. Monolithic Power Systems has a consensus price target of $828.67, indicating a potential upside of 40.49%. Given Monolithic Power Systems’ higher probable upside, analysts plainly believe Monolithic Power Systems is more favorable than Valens Semiconductor.

Institutional & Insider Ownership

33.9% of Valens Semiconductor shares are owned by institutional investors. Comparatively, 93.5% of Monolithic Power Systems shares are owned by institutional investors. 58.9% of Valens Semiconductor shares are owned by insiders. Comparatively, 3.7% of Monolithic Power Systems shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Profitability

This table compares Valens Semiconductor and Monolithic Power Systems’ 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%
Monolithic Power Systems 21.29% 20.44% 16.93%

Risk and Volatility

Valens Semiconductor has a beta of 0.33, meaning that its stock price is 67% less volatile than the S&P 500. Comparatively, Monolithic Power Systems has a beta of 1.03, meaning that its stock price is 3% more volatile than the S&P 500.

Summary

Monolithic Power Systems beats Valens Semiconductor on 12 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 Monolithic Power Systems

(Get Free Report)

Monolithic Power Systems, Inc. engages in the design, development, marketing, and sale of semiconductor-based power electronics solutions for the storage and computing, automotive, enterprise data, consumer, communications, and industrial markets. The company provides direct current (DC) to DC integrated circuits (ICs) that are used to convert and control voltages of various electronic systems, such as cloud-based CPU servers, server artificial intelligence applications, storage applications, commercial notebooks, digital cockpit, power sources, home appliances, 4G and 5G infrastructure, and satellite communications applications. It offers lighting control ICs for backlighting that are used in systems, which provide the light source for LCD panels in computers and notebooks, monitors, car navigation systems, and televisions, as well as for general illumination products. The company sells its products through third-party distributors, value-added resellers, directly to original equipment manufacturers, original design manufacturers, electronic manufacturing service providers, and other end customers. It serves China, Taiwan, South Korea, Europe, Japan, Southeast Asia, the United States, and internationally. Monolithic Power Systems, Inc. was incorporated in 1997 and is headquartered in Kirkland, Washington.

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