Financial Contrast: Silvaco Group (NASDAQ:SVCO) and Qualys (NASDAQ:QLYS)

Silvaco Group (NASDAQ:SVCO) and Qualys (NASDAQ:QLYS) are both technology companies, but which is the superior stock? We will compare the two businesses based on the strength of their institutional ownership, valuation, earnings, analyst recommendations, profitability, risk and dividends.

Risk and Volatility

Silvaco Group has a beta of 0.65, meaning that its stock price is 35% less volatile than the S&P 500. Comparatively, Qualys has a beta of 0.54, meaning that its stock price is 46% less volatile than the S&P 500.

Earnings & Valuation

This table compares Silvaco Group and Qualys”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Silvaco Group	$63.06 million	3.76	-$41.21 million	($0.68)	-10.20
Qualys	$702.98 million	9.74	$198.32 million	$5.78	34.23

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

Analyst Recommendations

This is a summary of current recommendations and price targets for Silvaco Group and Qualys, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Silvaco Group	1	0	4	0	2.60
Qualys	1	10	4	1	2.31

Silvaco Group presently has a consensus price target of $13.75, suggesting a potential upside of 98.16%. Qualys has a consensus price target of $185.87, suggesting a potential downside of 6.07%. Given Silvaco Group’s stronger consensus rating and higher possible upside, analysts clearly believe Silvaco Group is more favorable than Qualys.

Institutional & Insider Ownership

99.3% of Qualys shares are owned by institutional investors. 47.9% of Silvaco Group shares are owned by company insiders. Comparatively, 0.7% of Qualys shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Profitability

This table compares Silvaco Group and Qualys’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Silvaco Group	-30.45%	-13.28%	-8.94%
Qualys	29.38%	37.52%	19.41%

Summary

Qualys beats Silvaco Group on 10 of the 14 factors compared between the two stocks.

About Silvaco Group

Silvaco Group Inc. is a provider of TCAD, EDA software and SIP solutions which enable semiconductor design and AI through software and innovation. The company’s solutions are used for process and device development across display, power devices, automotive, memory, high performance compute, photonics, internet of things and 5G/6G mobile markets for complex SoC design. Silvaco Group Inc. is headquartered in Santa Clara, California.

About Qualys

Qualys, Inc., together with its subsidiaries, provides cloud-based platform delivering information technology (IT), security, and compliance solutions in the United States and internationally. It offers Qualys Cloud Apps, which include Cybersecurity Asset Management and External Attack Surface Management; Vulnerability Management, Detection and Response; Web Application Scanning; Patch Management; Custom Assessment and Remediation; Multi-Vector Endpoint Detection and Response; Context Extended Detection and Response; Policy Compliance; File Integrity Monitoring; and Qualys TotalCloud, as well as Cloud Workload Protection, Cloud Detection and Response, Cloud Security Posture Management, Infrastructure as Code, and Container Security. The company's integrated suite of IT, security, and compliance solutions delivered on its Qualys' Enterprise TruRisk Platform enables customers to identify and manage IT assets; collect and analyze IT security data; discover and prioritize vulnerabilities; quantify cyber risk exposure; recommend and implement remediation actions; and verify the implementation of such actions. It also provides asset tagging and management, reporting and dashboards, questionnaires and collaboration, remediation and workflow, big data correlation and analytics engine, and alerts and notifications that enable clients to detect vulnerabilities, and measure and remediate cyber risk. The company offers its solutions to enterprises, government entities, and small and medium-sized businesses in various industries, including education, financial services, government, healthcare, insurance, manufacturing, media, retail, technology, and utilities through its sales teams, as well as through its network of channel partners, such as security consulting organizations, managed service providers, resellers, cloud providers, and consulting firms. Qualys, Inc. was incorporated in 1999 and is headquartered in Foster City, California.