Head-To-Head Comparison: Valens Semiconductor (NYSE:VLN) versus NVIDIA (NASDAQ:NVDA)
by Renee Jackson · The Cerbat GemValens Semiconductor (NYSE:VLN – Get Free Report) and NVIDIA (NASDAQ:NVDA – Get Free Report) are both computer and technology companies, but which is the better investment? We will compare the two businesses based on the strength of their risk, dividends, valuation, analyst recommendations, institutional ownership, profitability and earnings.
Valuation & Earnings
This table compares Valens Semiconductor and NVIDIA”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Valens Semiconductor | $61.26 million | 3.20 | -$19.66 million | ($0.24) | -7.83 |
| NVIDIA | $96.31 billion | 36.15 | $29.76 billion | $1.71 | 82.77 |
NVIDIA has higher revenue and earnings than Valens Semiconductor. Valens Semiconductor is trading at a lower price-to-earnings ratio than NVIDIA, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Valens Semiconductor and NVIDIA’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Valens Semiconductor | -46.71% | -17.06% | -15.35% |
| NVIDIA | 55.04% | 113.50% | 73.83% |
Risk & Volatility
Valens Semiconductor has a beta of 0.4, meaning that its share price is 60% less volatile than the S&P 500. Comparatively, NVIDIA has a beta of 1.67, meaning that its share price is 67% more volatile than the S&P 500.
Analyst Ratings
This is a breakdown of current recommendations for Valens Semiconductor and NVIDIA, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Valens Semiconductor | 0 | 0 | 1 | 0 | 3.00 |
| NVIDIA | 0 | 4 | 37 | 2 | 2.95 |
Valens Semiconductor presently has a consensus target price of $4.00, indicating a potential upside of 112.77%. NVIDIA has a consensus target price of $143.07, indicating a potential upside of 1.08%. Given Valens Semiconductor’s stronger consensus rating and higher probable upside, research analysts plainly believe Valens Semiconductor is more favorable than NVIDIA.
Institutional and Insider Ownership
33.9% of Valens Semiconductor shares are held by institutional investors. Comparatively, 65.3% of NVIDIA shares are held by institutional investors. 58.9% of Valens Semiconductor shares are held by insiders. Comparatively, 4.2% of NVIDIA shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.
Summary
NVIDIA beats Valens Semiconductor on 12 of the 15 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 NVIDIA
NVIDIA Corporation provides graphics and compute and networking solutions in the United States, Taiwan, China, Hong Kong, and internationally. The Graphics segment offers GeForce GPUs for gaming and PCs, the GeForce NOW game streaming service and related infrastructure, and solutions for gaming platforms; Quadro/NVIDIA RTX GPUs for enterprise workstation graphics; virtual GPU or vGPU software for cloud-based visual and virtual computing; automotive platforms for infotainment systems; and Omniverse software for building and operating metaverse and 3D internet applications. The Compute & Networking segment comprises Data Center computing platforms and end-to-end networking platforms, including Quantum for InfiniBand and Spectrum for Ethernet; NVIDIA DRIVE automated-driving platform and automotive development agreements; Jetson robotics and other embedded platforms; NVIDIA AI Enterprise and other software; and DGX Cloud software and services. The company's products are used in gaming, professional visualization, data center, and automotive markets. It sells its products to original equipment manufacturers, original device manufacturers, system integrators and distributors, independent software vendors, cloud service providers, consumer internet companies, add-in board manufacturers, distributors, automotive manufacturers and tier-1 automotive suppliers, and other ecosystem participants. NVIDIA Corporation was incorporated in 1993 and is headquartered in Santa Clara, California.