Amtech Systems (NASDAQ:ASYS – Get Free Report) and Valens Semiconductor (NYSE:VLN – Get Free Report) are both small-cap technology companies, but which is the better stock? We will contrast the two businesses based on the strength of their profitability, risk, institutional ownership, valuation, dividends, analyst recommendations and earnings.
Risk and Volatility
Amtech Systems has a beta of 2.09, suggesting that its stock price is 109% more volatile than the S&P 500. Comparatively, Valens Semiconductor has a beta of 1.3, suggesting that its stock price is 30% more volatile than the S&P 500.
Valuation and Earnings
This table compares Amtech Systems and Valens Semiconductor”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Amtech Systems | $79.36 million | 3.09 | -$30.33 million | $0.26 | 53.85 |
| Valens Semiconductor | $70.62 million | 2.46 | -$31.58 million | ($0.32) | -5.02 |
Amtech Systems has higher revenue and earnings than Valens Semiconductor. Valens Semiconductor is trading at a lower price-to-earnings ratio than Amtech Systems, indicating that it is currently the more affordable of the two stocks.
Institutional & Insider Ownership
50.2% of Amtech Systems shares are held by institutional investors. Comparatively, 33.9% of Valens Semiconductor shares are held by institutional investors. 26.9% of Amtech Systems 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 endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.
Profitability
This table compares Amtech Systems and Valens Semiconductor’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Amtech Systems | 4.90% | 6.33% | 4.00% |
| Valens Semiconductor | -45.23% | -30.58% | -23.97% |
Analyst Recommendations
This is a breakdown of recent ratings and recommmendations for Amtech Systems and Valens Semiconductor, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Amtech Systems | 0 | 3 | 1 | 0 | 2.25 |
| Valens Semiconductor | 1 | 0 | 1 | 0 | 2.00 |
Amtech Systems currently has a consensus price target of $22.00, suggesting a potential upside of 57.14%. Valens Semiconductor has a consensus price target of $4.00, suggesting a potential upside of 149.22%. Given Valens Semiconductor’s higher possible upside, analysts plainly believe Valens Semiconductor is more favorable than Amtech Systems.
Summary
Amtech Systems beats Valens Semiconductor on 10 of the 12 factors compared between the two stocks.
About Amtech Systems
Amtech Systems, Inc. manufactures and sells capital equipment and related consumables for use in fabricating silicon carbide (SiC), silicon power devices, analog and discrete devices, electronic assemblies, and light-emitting diodes (LEDs) worldwide. The company operates through Semiconductor and Material and Substrate segments. The Semiconductor segment designs, manufactures, sells, and services thermal processing equipment, including solder reflow ovens, horizontal diffusion furnaces, and custom high-temp belt furnaces for use by semiconductor, electronics, and electro/mechanical assembly manufacturers; and diffusion and reflow thermal systems, as well as wafer cleaning equipment and related services. The Material and Substrate segment manufactures and sells consumables and machinery for lapping and polishing of materials, such as silicon wafers for semiconductor products; sapphire substrates for LED lighting and mobile devices; silicon carbide wafers for LED and power device applications; various glass and silica components for 3D image transmission; quartz and ceramic components for telecommunications devices; and medical device components, and optical and photonics applications. It also offers substrate products comprising of double-sided wafer cleaning system, entegrity head tester, substrate carrier, substrate polishing templates, double-sided lapping and polishing machines, single-sided polisher, and substrate process chemicals. The company sells its products through sales personnel, as well as a network of independent sales representatives and distributors. Amtech Systems, Inc. was incorporated in 1981 and is headquartered in Tempe, Arizona.
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.
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