Comparing Sequans Communications (SQNS) and Its Rivals

Sequans Communications (NYSE:SQNS) is one of 220 publicly-traded companies in the “Semiconductors & Semiconductor Equipment” industry, but how does it contrast to its peers? We will compare Sequans Communications to similar companies based on the strength of its dividends, analyst recommendations, risk, profitability, institutional ownership, earnings and valuation.

Analyst Ratings

This is a breakdown of recent ratings for Sequans Communications and its peers, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Sequans Communications	1	1	3	0	2.40
Sequans Communications Competitors	3512	12380	25827	1004	2.57

Sequans Communications currently has a consensus target price of $12.67, indicating a potential upside of 410.96%. As a group, “Semiconductors & Semiconductor Equipment” companies have a potential upside of 35.85%. Given Sequans Communications’ higher probable upside, equities analysts clearly believe Sequans Communications is more favorable than its peers.

Profitability

This table compares Sequans Communications and its peers’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Sequans Communications	-516.47%	-75.19%	-37.31%
Sequans Communications Competitors	-1,255.44%	-126.13%	-3.87%

Volatility & Risk

Sequans Communications has a beta of 0.84, indicating that its share price is 16% less volatile than the S&P 500. Comparatively, Sequans Communications’ peers have a beta of 2.81, indicating that their average share price is 181% more volatile than the S&P 500.

Earnings and Valuation

This table compares Sequans Communications and its peers top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Sequans Communications	$27.19 million	-$109.28 million	-0.25
Sequans Communications Competitors	$9.85 billion	$2.53 billion	8.76

Sequans Communications’ peers have higher revenue and earnings than Sequans Communications. Sequans Communications is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.

Institutional & Insider Ownership

63.3% of Sequans Communications shares are held by institutional investors. Comparatively, 54.7% of shares of all “Semiconductors & Semiconductor Equipment” companies are held by institutional investors. 9.4% of Sequans Communications shares are held by company insiders. Comparatively, 11.8% of shares of all “Semiconductors & Semiconductor Equipment” companies are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Summary

Sequans Communications peers beat Sequans Communications on 9 of the 13 factors compared.

About Sequans Communications

Sequans Communications S.A. is a fabless semiconductor company that develops cellular connectivity solutions for the Internet of Things (IoT). Its technology is designed to connect devices and equipment to 4G and 5G networks, supporting applications such as asset tracking, smart metering, industrial monitoring, security systems, and connected consumer products. The company offers chipsets, modules, and related software for several cellular IoT applications. Its product portfolio has included solutions for LTE-M and NB-IoT, which are intended for low-power, wide-area connectivity, as well as products supporting broader 4G and 5G applications.