Head to Head Comparison: Valens Semiconductor (NYSE:VLN) versus NXP Semiconductors (NASDAQ:NXPI)

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

Volatility & Risk

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

Institutional and Insider Ownership

90.5% of NXP Semiconductors shares are held by institutional investors. Comparatively, 33.9% of Valens Semiconductor shares are held by institutional investors. 0.1% of NXP Semiconductors shares are held by company insiders. Comparatively, 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 stock will outperform the market over the long term.

Profitability

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

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

Analyst Ratings

This is a breakdown of current ratings for NXP Semiconductors and Valens Semiconductor, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
NXP Semiconductors	0	3	16	1	2.90
Valens Semiconductor	0	0	1	1	3.50

NXP Semiconductors presently has a consensus price target of $267.00, suggesting a potential upside of 43.65%. Valens Semiconductor has a consensus price target of $4.00, suggesting a potential upside of 98.51%. Given Valens Semiconductor’s stronger consensus rating and higher possible upside, analysts clearly believe Valens Semiconductor is more favorable than NXP Semiconductors.

Earnings and Valuation

This table compares NXP Semiconductors and Valens Semiconductor”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
NXP Semiconductors	$12.61 billion	3.74	$2.51 billion	$9.73	19.10
Valens Semiconductor	$57.86 million	3.70	-$19.66 million	($0.35)	-5.76

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.

Summary

NXP Semiconductors beats Valens Semiconductor on 11 of the 14 factors compared between the two stocks.

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.

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.