Critical Survey: Silicon Laboratories (NASDAQ:SLAB) and SEALSQ (NASDAQ:LAES)

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

Volatility & Risk

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

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 large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Profitability

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

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

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Silicon Laboratories and SEALSQ, as provided by MarketBeat.

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

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

Valuation and Earnings

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

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

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

Summary

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

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.

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.