QuickLogic (NASDAQ:QUIK) & Valens Semiconductor (NYSE:VLN) Head-To-Head Analysis

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Valens Semiconductor	-44.72%	-27.00%	-21.71%
QuickLogic	-107.70%	-45.83%	-24.81%

Analyst Recommendations

This is a breakdown of recent ratings and price targets for Valens Semiconductor and QuickLogic, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Valens Semiconductor	1	0	1	0	2.00
QuickLogic	1	1	2	0	2.25

Valens Semiconductor presently has a consensus target price of $3.00, indicating a potential upside of 144.90%. QuickLogic has a consensus target price of $10.50, indicating a potential upside of 12.66%. Given Valens Semiconductor’s higher possible upside, research analysts clearly believe Valens Semiconductor is more favorable than QuickLogic.

Earnings and Valuation

This table compares Valens Semiconductor and QuickLogic”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Valens Semiconductor	$70.62 million	1.79	-$31.58 million	($0.31)	-3.95
QuickLogic	$13.77 million	11.57	-$14.83 million	($0.90)	-10.36

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

Volatility & Risk

Valens Semiconductor has a beta of 0.28, meaning that its share price is 72% less volatile than the S&P 500. Comparatively, QuickLogic has a beta of 0.6, meaning that its share price is 40% less volatile than the S&P 500.

Insider & Institutional Ownership

33.9% of Valens Semiconductor shares are held by institutional investors. Comparatively, 31.5% of QuickLogic shares are held by institutional investors. 58.9% of Valens Semiconductor shares are held by insiders. Comparatively, 1.5% of QuickLogic shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Summary

Valens Semiconductor beats QuickLogic on 9 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 QuickLogic

QuickLogic Corporation operates as a fabless semiconductor company in the United States. The company offers embedded FPGA intellectual property, low power, multicore semiconductor system-on-chips, discrete FPGAs, and AI software; and end-to-end artificial intelligence/machine learning solution with accurate sensor algorithms using AI technology. It provides various platforms, such as software tools and eFPGA IP enables the adoption of AI, voice, and sensor processing across aerospace, and defense, consumer/industrial IOT, and consumer electronics markets. In addition, the company engages in the eFPGA IP Licensing business consisting of development and integration of eFPGA technology into custom semiconductor solutions. Further, the company offers silicon products, such as EOS, QuickAI, ArcticLink III, PolarPro 3, PolarPro II, PolarPro, and Eclipse II products; and PASIC 3 and QuickRAM, as well as programming hardware and design software services. The company markets and sells its products to defense industrial base contractors, U.S. government entities, system OEMs, and fabless semiconductor companies through a network of sales managers and distributors in North America, Europe, and the Asia Pacific. It has a strategic partnership with YorChip to develop low-power unified chiplet interconnect express FPGA chiplets. The company was founded in 1988 and is headquartered in San Jose, California.