Critical Analysis: Silicon Laboratories (NASDAQ:SLAB) vs. SEALSQ (NASDAQ:LAES)

SEALSQ (NASDAQ:LAES) and Silicon Laboratories (NASDAQ:SLAB) are both computer and technology companies, but which is the superior investment? We will compare the two businesses based on the strength of their earnings, risk, dividends, analyst recommendations, profitability, institutional ownership and valuation.

Analyst Recommendations

This is a breakdown of current ratings and target prices for SEALSQ and Silicon Laboratories, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
SEALSQ	0	0	0	0	N/A
Silicon Laboratories	0	5	5	0	2.50

Silicon Laboratories has a consensus target price of $135.00, indicating a potential upside of 34.64%. Given Silicon Laboratories’ higher possible upside, analysts clearly believe Silicon Laboratories is more favorable than SEALSQ.

Profitability

This table compares SEALSQ and Silicon Laboratories’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
SEALSQ	N/A	N/A	N/A
Silicon Laboratories	-36.53%	-9.13%	-7.83%

Institutional and Insider Ownership

1.3% of SEALSQ shares are held by institutional investors. 1.7% of Silicon Laboratories shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Earnings & Valuation

This table compares SEALSQ and Silicon Laboratories’ top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
SEALSQ	$30.06 million	0.28	-$3.27 million	N/A	N/A
Silicon Laboratories	$782.26 million	4.14	-$34.52 million	($3.31)	-30.29

SEALSQ has higher earnings, but lower revenue than Silicon Laboratories.

Volatility & Risk

SEALSQ has a beta of 3.37, meaning that its share price is 237% more volatile than the S&P 500. Comparatively, Silicon Laboratories has a beta of 1.19, meaning that its share price is 19% more volatile than the S&P 500.

Summary

SEALSQ beats Silicon Laboratories on 6 of the 11 factors compared between the two stocks.

About SEALSQ

SEALSQ Corp, together with its subsidiaries, designs, develops, and markets semiconductor chips in Europe, the Middle East, Africa, North America, the Asia Pacific, and Latin America. It offers semiconductors, such as VaultIC secure elements, secure arm platform, and smart card reader chips; identity provisioning services, such as IoT device provisioning and chip provisioning; and managed PKI for IoT solutions and trust services. The company provides device-to-cloud authentication, device attestation for matter, GSMA root certificate, device-to-device authentication, data protection, anti-counterfeiting and brand protection, security access, device ID provisioning, identity lifecycle management, and satellite IoT connectivity solutions. Its products are used in various applications, such as smart energy, smart home, automotive EV charging, consumer IoT, aerospace and military, telecommunications, logistics, medical, luxury, and other industrial applications. SEALSQ Corp was founded in 2022 and is based in Cointrin, Switzerland.

About Silicon Laboratories

Silicon Laboratories Inc., a fabless semiconductor company, provides various analog-intensive mixed-signal solutions in the United States, China, Taiwan, and internationally. The company's products include wireless microcontrollers and sensor products. Its products are used in various electronic products in a range of applications for the industrial Internet of Things (IoT), including industrial automation and control, smart buildings, access control, HVAC control, and industrial wearables and power tools; smart cities applications, such as smart metering, smart street lighting, renewable energy, electric vehicle supply equipment, and smart agriculture; commercial IoT applications, including smart lighting, asset tracking, electronic shelf labels, theft protection, and enterprise access points; smart home applications, comprising home automation/security systems, smart speakers, smart lighting, HVAC control, smart cameras, smart appliances, smart home sensing, smart locks, and window/blind controls; and connected health applications, including diabetes management, consumer health and fitness, elderly care, patient monitoring, and activity tracking; as well as in commercial building automation, consumer electronics, and medical instrumentation. The company sells its products through its direct sales force, as well as through a network of independent sales representatives and distributors. Silicon Laboratories Inc. was founded in 1996 and is headquartered in Austin, Texas.