Head-To-Head Survey: Valens Semiconductor (NYSE:VLN) & QUALCOMM (NASDAQ:QCOM)

QUALCOMM (NASDAQ:QCOM) and Valens Semiconductor (NYSE:VLN) are both computer and technology companies, but which is the superior investment? We will compare the two businesses based on the strength of their analyst recommendations, dividends, profitability, valuation, earnings, risk and institutional ownership.

Volatility and Risk

QUALCOMM has a beta of 1.26, indicating that its stock price is 26% more volatile than the S&P 500. Comparatively, Valens Semiconductor has a beta of 0.27, indicating that its stock price is 73% less volatile than the S&P 500.

Insider and Institutional Ownership

74.4% of QUALCOMM shares are held by institutional investors. Comparatively, 33.9% of Valens Semiconductor shares are held by institutional investors. 0.1% of QUALCOMM 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 QUALCOMM and Valens Semiconductor’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
QUALCOMM	26.11%	40.11%	19.35%
Valens Semiconductor	-55.20%	-20.44%	-17.33%

Analyst Recommendations

This is a breakdown of current ratings and target prices for QUALCOMM and Valens Semiconductor, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
QUALCOMM	1	13	12	0	2.42
Valens Semiconductor	0	0	1	1	3.50

QUALCOMM currently has a consensus target price of $184.86, indicating a potential upside of 16.71%. Valens Semiconductor has a consensus target price of $4.00, indicating a potential upside of 28.41%. Given Valens Semiconductor’s stronger consensus rating and higher possible upside, analysts clearly believe Valens Semiconductor is more favorable than QUALCOMM.

Earnings & Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
QUALCOMM	$38.96 billion	4.46	$10.14 billion	$9.82	16.13
Valens Semiconductor	$57.86 million	5.73	-$36.58 million	($0.33)	-9.44

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

Summary

QUALCOMM beats Valens Semiconductor on 10 of the 15 factors compared between the two stocks.

About QUALCOMM

QUALCOMM Incorporated engages in the development and commercialization of foundational technologies for the wireless industry worldwide. It operates through three segments: Qualcomm CDMA Technologies (QCT); Qualcomm Technology Licensing (QTL); and Qualcomm Strategic Initiatives (QSI). The QCT segment develops and supplies integrated circuits and system software based on 3G/4G/5G and other technologies for use in wireless voice and data communications, networking, computing, multimedia, and position location products. The QTL segment grants licenses or provides rights to use portions of its intellectual property portfolio, which include various patent rights useful in the manufacture and sale of wireless products comprising products implementing CDMA2000, WCDMA, LTE and/or OFDMA-based 5G standards and their derivatives. The QSI segment invests in early-stage companies in various industries, including 5G, artificial intelligence, automotive, consumer, enterprise, cloud, IoT, and extended reality, and investments, including non-marketable equity securities and, to a lesser extent, marketable equity securities, and convertible debt instruments. It also provides development, and other services and related products to the United States government agencies and their contractors. The company was incorporated in 1985 and is headquartered in San Diego, California.

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.