Valens Semiconductor (NYSE:VLN) & United Microelectronics (NYSE:UMC) Critical Comparison

United Microelectronics (NYSE:UMC) and Valens Semiconductor (NYSE:VLN) are both computer and technology companies, but which is the better stock? We will compare the two businesses based on the strength of their profitability, dividends, institutional ownership, risk, valuation, earnings and analyst recommendations.

Earnings & Valuation

This table compares United Microelectronics and Valens Semiconductor”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
United Microelectronics	$232.30 billion	0.07	$1.44 billion	$0.58	10.77
Valens Semiconductor	$57.86 million	3.39	-$19.66 million	($0.35)	-5.27

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

Insider and Institutional Ownership

5.1% of United Microelectronics shares are owned by institutional investors. Comparatively, 33.9% of Valens Semiconductor shares are owned by institutional investors. 8.0% of United Microelectronics shares are owned by company insiders. Comparatively, 58.9% of Valens Semiconductor shares are owned by company 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.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
United Microelectronics	20.35%	12.78%	8.16%
Valens Semiconductor	-41.94%	-14.05%	-12.51%

Analyst Recommendations

This is a summary of recent ratings and target prices for United Microelectronics and Valens Semiconductor, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
United Microelectronics	0	3	0	1	2.50
Valens Semiconductor	0	0	1	1	3.50

United Microelectronics presently has a consensus target price of $7.40, suggesting a potential upside of 18.48%. Valens Semiconductor has a consensus target price of $4.00, suggesting a potential upside of 116.80%. Given Valens Semiconductor’s stronger consensus rating and higher possible upside, analysts plainly believe Valens Semiconductor is more favorable than United Microelectronics.

Volatility & Risk

United Microelectronics has a beta of 1.12, indicating that its share price is 12% more volatile than the S&P 500. Comparatively, Valens Semiconductor has a beta of 0.34, indicating that its share price is 66% less volatile than the S&P 500.

Summary

United Microelectronics beats Valens Semiconductor on 8 of the 14 factors compared between the two stocks.

About United Microelectronics

United Microelectronics Corporation operates as a semiconductor wafer foundry in Taiwan, China, Hong Kong, Japan, Korea, the United States, Europe, and internationally. The company provides circuit design, mask tooling, wafer fabrication, and assembly and testing services. It serves fabless design companies and integrated device manufacturers. United Microelectronics Corporation was incorporated in 1980 and is headquartered in Hsinchu City, Taiwan.

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.