Valens Semiconductor (NYSE:VLN – Get Free Report) and United Microelectronics (NYSE:UMC – Get Free Report) are both computer and technology companies, but which is the better investment? We will compare the two companies based on the strength of their profitability, dividends, analyst recommendations, risk, institutional ownership, earnings and valuation.
Risk & Volatility
Valens Semiconductor has a beta of 0.34, meaning that its stock price is 66% less volatile than the S&P 500. Comparatively, United Microelectronics has a beta of 1.12, meaning that its stock price is 12% more volatile than the S&P 500.
Earnings & Valuation
This table compares Valens Semiconductor and United Microelectronics”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Valens Semiconductor | $57.86 million | 3.39 | -$19.66 million | ($0.35) | -5.27 |
| United Microelectronics | $232.30 billion | 0.07 | $1.44 billion | $0.58 | 10.77 |
Profitability
This table compares Valens Semiconductor and United Microelectronics’ 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% |
| United Microelectronics | 20.35% | 12.78% | 8.16% |
Institutional and Insider Ownership
33.9% of Valens Semiconductor shares are held by institutional investors. Comparatively, 5.1% of United Microelectronics shares are held by institutional investors. 58.9% of Valens Semiconductor shares are held by insiders. Comparatively, 8.0% of United Microelectronics shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.
Analyst Recommendations
This is a summary of recent ratings and recommmendations for Valens Semiconductor and United Microelectronics, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Valens Semiconductor | 0 | 0 | 1 | 1 | 3.50 |
| United Microelectronics | 0 | 3 | 0 | 1 | 2.50 |
Valens Semiconductor presently has a consensus target price of $4.00, indicating a potential upside of 116.80%. United Microelectronics has a consensus target price of $7.40, indicating a potential upside of 18.48%. Given Valens Semiconductor’s stronger consensus rating and higher probable upside, research analysts plainly believe Valens Semiconductor is more favorable than United Microelectronics.
Summary
United Microelectronics beats Valens Semiconductor on 8 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 United Microelectronics
United Microelectronics Corporation operates as a semiconductor wafer foundry in Taiwan, China, Hong Kong, Japan, Korea, the United States, Europe, and internationally. The company provides circuit design, mask tooling, wafer fabrication, and assembly and testing services. It serves fabless design companies and integrated device manufacturers. United Microelectronics Corporation was incorporated in 1980 and is headquartered in Hsinchu City, Taiwan.
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