Critical Comparison: Valens Semiconductor (NYSE:VLN) and Qorvo (NASDAQ:QRVO)

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

Analyst Ratings

This is a breakdown of current recommendations and price targets for Qorvo and Valens Semiconductor, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Qorvo	1	11	3	0	2.13
Valens Semiconductor	1	0	1	0	2.00

Qorvo presently has a consensus target price of $91.45, indicating a potential downside of 19.90%. Valens Semiconductor has a consensus target price of $4.00, indicating a potential upside of 157.23%. Given Valens Semiconductor’s higher probable upside, analysts clearly believe Valens Semiconductor is more favorable than Qorvo.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Qorvo	10.95%	17.23%	10.06%
Valens Semiconductor	-45.23%	-30.58%	-23.97%

Institutional & Insider Ownership

88.6% of Qorvo shares are owned by institutional investors. Comparatively, 33.9% of Valens Semiconductor shares are owned by institutional investors. 0.5% of Qorvo shares are owned by company insiders. Comparatively, 58.9% of Valens Semiconductor shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Valuation & Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Qorvo	$3.64 billion	2.76	$338.99 million	$4.31	26.49
Valens Semiconductor	$70.62 million	2.38	-$31.58 million	($0.32)	-4.86

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

Volatility & Risk

Qorvo has a beta of 1.42, indicating that its stock price is 42% more volatile than the S&P 500. Comparatively, Valens Semiconductor has a beta of 1.24, indicating that its stock price is 24% more volatile than the S&P 500.

Summary

Qorvo beats Valens Semiconductor on 12 of the 14 factors compared between the two stocks.

About Qorvo

Qorvo, Inc. develops and supplies radio-frequency (RF) semiconductor components and solutions used to connect, power and protect electronic systems. Its products include RF amplifiers, filters, switches, tuners and integrated modules, as well as technologies for power management and wireless connectivity. The company serves markets that include mobile devices, network infrastructure, automotive, aerospace and defense, industrial applications and the Internet of Things. Its solutions are used in products ranging from smartphones and wireless networks to radar systems and connected devices, with customers and operations spanning global markets.

About Valens Semiconductor

Valens Semiconductor Ltd. is a fabless semiconductor company headquartered in Hod Hasharon, Israel. Founded in 2006, the company develops high-speed connectivity solutions for the audio-video and automotive markets, with an emphasis on transmitting data reliably over longer distances and through challenging environments. Valens is best known for its HDBaseT technology, which enables the distribution of high-definition video, audio, power and control signals over standard cabling. Its products serve professional audio-video applications such as conference rooms, classrooms, digital signage and residential entertainment systems.