Contrasting GCT Semiconductor (NYSE:GCTS) & SEALSQ (NASDAQ:LAES)

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

Institutional and Insider Ownership

28.1% of GCT Semiconductor shares are owned by institutional investors. Comparatively, 1.3% of SEALSQ shares are owned by institutional investors. 5.4% of GCT Semiconductor shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Risk and Volatility

GCT Semiconductor has a beta of 1.75, indicating that its share price is 75% more volatile than the S&P 500. Comparatively, SEALSQ has a beta of -8.22, indicating that its share price is 922% less volatile than the S&P 500.

Valuation and Earnings

This table compares GCT Semiconductor and SEALSQ”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
GCT Semiconductor	$2.87 million	74.54	-$43.37 million	($0.81)	-3.18
SEALSQ	$18.25 million	32.58	-$34.19 million	N/A	N/A

SEALSQ has higher revenue and earnings than GCT Semiconductor.

Analyst Recommendations

This is a summary of recent recommendations for GCT Semiconductor and SEALSQ, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
GCT Semiconductor	2	0	2	0	2.00
SEALSQ	1	1	1	0	2.00

GCT Semiconductor currently has a consensus price target of $3.50, indicating a potential upside of 35.92%. SEALSQ has a consensus price target of $6.00, indicating a potential upside of 94.81%. Given SEALSQ’s higher possible upside, analysts clearly believe SEALSQ is more favorable than GCT Semiconductor.

Profitability

This table compares GCT Semiconductor and SEALSQ’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
GCT Semiconductor	-1,078.51%	N/A	-231.58%
SEALSQ	N/A	N/A	N/A

About GCT Semiconductor

GCT Semiconductor Holding, Inc., operates as a fabless semiconductor company, designs, develops, and markets integrated circuits for the wireless semiconductor industry. The company provides RF and modem chipsets based on 4G LTE technology, including 4G LTE, 4.5G LTE Advanced, and 4.75G LTE Advanced-Pro. It also develops and sells cellular IoT chipsets for low-speed mobile networks such as eMTC/NB-IOT/Sigfox, and other network protocols; and 5G solutions. Its products and solutions are used in smartphones, tablets, hotspots, CPEs, USB dongles, routers, and M2M applications. The company sells its products directly or indirectly through distributors to original equipment manufacturers and original design manufacturers primarily in Taiwan, China, Korea and Japan, Europe, North America and South America. The company was formerly known as Global Communication Technology, Inc. GCT Semiconductor Holding, Inc. was founded in 1998 and is headquartered in San Jose, California.

About SEALSQ

SEALSQ Corp, together with its subsidiaries, designs, develops, and markets semiconductor chips in Europe, the Middle East, Africa, North America, the Asia Pacific, and Latin America. It offers semiconductors, such as VaultIC secure elements, secure arm platform, and smart card reader chips; identity provisioning services, such as IoT device provisioning and chip provisioning; and managed PKI for IoT solutions and trust services. The company provides device-to-cloud authentication, device attestation for matter, GSMA root certificate, device-to-device authentication, data protection, anti-counterfeiting and brand protection, security access, device ID provisioning, identity lifecycle management, and satellite IoT connectivity solutions. Its products are used in various applications, such as smart energy, smart home, automotive EV charging, consumer IoT, aerospace and military, telecommunications, logistics, medical, luxury, and other industrial applications. SEALSQ Corp was founded in 2022 and is based in Cointrin, Switzerland.