Critical Analysis: SEALSQ (NASDAQ:LAES) and Ebang International (NASDAQ:EBON)

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

Institutional & Insider Ownership

1.3% of SEALSQ shares are held by institutional investors. Comparatively, 1.1% of Ebang International shares are held by institutional investors. 25.4% of Ebang International 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.

Valuation and Earnings

This table compares SEALSQ and Ebang International”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
SEALSQ	$20.14 million	0.34	-$3.27 million	N/A	N/A
Ebang International	$3.59 million	8.11	-$36.77 million	N/A	N/A

SEALSQ has higher revenue and earnings than Ebang International.

Volatility and Risk

SEALSQ has a beta of 3.38, suggesting that its stock price is 238% more volatile than the S&P 500. Comparatively, Ebang International has a beta of 1.79, suggesting that its stock price is 79% more volatile than the S&P 500.

Profitability

This table compares SEALSQ and Ebang International’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
SEALSQ	N/A	N/A	N/A
Ebang International	N/A	N/A	N/A

Analyst Recommendations

This is a summary of recent recommendations and price targets for SEALSQ and Ebang International, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
SEALSQ	0	0	1	0	3.00
Ebang International	0	0	0	0	N/A

SEALSQ currently has a consensus price target of $1.75, indicating a potential upside of 336.52%. Given SEALSQ’s higher possible upside, analysts clearly believe SEALSQ is more favorable than Ebang International.

Summary

SEALSQ beats Ebang International on 6 of the 8 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 Ebang International

Ebang International Holdings Inc., through its subsidiaries, engages in the research, design, and development of application-specific integrated circuit chips and manufacture of Bitcoin mining machines under the Ebit brand in Singapore, Hong Kong, Australia, the Bahamas, and internationally. It also provides mining machine hosting services; and engages in the development of proprietary cryptocurrency exchange platform. In addition, the company offers fiber-optic communication access devices, including multiprotocol label switching fiber-optic access network devices, multi-service access platform integrated business access devices, and wavelength-division multiplexing fiber-optic devices; and enterprise convergent terminal products, which consists gigabit passive optical network, Fiber to the Room products, passive optical network converged gateways, enterprise cloud gateway devices, industrial Internet of Things access devices, and business enterprise smart wireless access devices. It serves the blockchain and telecommunications industries. The company also operates a cross-border payment and foreign exchange platform. It sells its blockchain products directly, as well as through its website; and telecommunication products under the EBANG brand name primarily through supplier contracts. The company was incorporated in 2018 and is headquartered in Hangzhou, China.