NVE Corporation (NVEC) vs Valens Semiconductor, Ltd. (VLN)

NVE Corporation and Valens Semiconductor, Ltd. are both Semiconductors companies. NVE Corporation is the larger, with a market value of $345.0M against $147.3M — 2.3× the size. Valens Semiconductor, Ltd. has negative trailing earnings, so its P/E is not meaningful; NVE Corporation trades at 19.5×. NVE Corporation grew revenue faster over the last twelve months: 24.1% against 7.68%. NVE Corporation has the higher net margin (58.2% vs −45.2%) and the higher return on invested capital (34.5% vs −170.4%). Across the 18 metrics below, NVE Corporation leads on 13 and Valens Semiconductor, Ltd. on 5.

Valuation

Metric NVEC VLN Semiconductors median
P/E 19.49 n/m 36.98
P/S 11.36 2.03 6.03
P/B 6.02 1.50 3.87
Price to free cash flow 18.72 n/m 43.80
EV/EBITDA 16.69 n/m 20.84
EV/Sales 10.59 0.85 5.07
Earnings yield 5.13% (23.53%) 1.13%
Free cash flow yield 5.34% (10.13%) 1.06%

Profitability

Metric NVEC VLN Semiconductors median
Gross margin 79.27% 61.78% 52.21%
Operating margin 61.63% (47.55%) 5.47%
Net margin 58.15% (45.23%) 4.26%
Free cash flow margin 60.69% (20.60%) 5.02%
Return on equity 30.38% (30.38%) 2.86%
Return on assets 29.47% (24.08%) 2.03%
Return on invested capital 34.50% (170.43%) 2.28%

Growth

Metric NVEC VLN Semiconductors median
Revenue growth (TTM) 24.06% 7.68% 17.60%
EPS growth (last fiscal year) 0.96% 11.43% 27.66%
Revenue growth, 5-year CAGR 4.27% 4.41% 5.14%
Net income growth, 5-year CAGR 5.38% 0.00% 0.00%

Health

Metric NVEC VLN Semiconductors median
Debt to equity 0.00 0.00 0.12
Current ratio 29.05 5.21 3.39
Net debt to EBITDA (1.24) 3.02 0.53

Dividend

Metric NVEC VLN Semiconductors median
Dividend yield 5.55% — 1.62%
Payout ratio 1.08 — 0.38

Size

Metric NVEC VLN Semiconductors median
Market cap 345.04m 147.26m 5.69b

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