Sequans Communications (NYSE:SQNS – Get Free Report) and Applied Optoelectronics (NASDAQ:AAOI – Get Free Report) are both computer and technology companies, but which is the better business? We will contrast the two businesses based on the strength of their dividends, earnings, institutional ownership, analyst recommendations, valuation, profitability and risk.
Profitability
This table compares Sequans Communications and Applied Optoelectronics’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Sequans Communications | -401.31% | -42.03% | -21.55% |
| Applied Optoelectronics | -8.39% | -5.29% | -2.99% |
Analyst Ratings
This is a breakdown of recent ratings and price targets for Sequans Communications and Applied Optoelectronics, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Sequans Communications | 1 | 0 | 2 | 1 | 2.75 |
| Applied Optoelectronics | 1 | 3 | 3 | 0 | 2.29 |
Valuation and Earnings
This table compares Sequans Communications and Applied Optoelectronics”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Sequans Communications | $27.19 million | 1.66 | -$102.44 million | ($12.60) | -0.25 |
| Applied Optoelectronics | $455.71 million | 15.29 | -$38.23 million | ($0.65) | -142.51 |
Applied Optoelectronics has higher revenue and earnings than Sequans Communications. Applied Optoelectronics is trading at a lower price-to-earnings ratio than Sequans Communications, indicating that it is currently the more affordable of the two stocks.
Risk and Volatility
Sequans Communications has a beta of 0.37, suggesting that its share price is 63% less volatile than the S&P 500. Comparatively, Applied Optoelectronics has a beta of 3.2, suggesting that its share price is 220% more volatile than the S&P 500.
Institutional and Insider Ownership
63.3% of Sequans Communications shares are owned by institutional investors. Comparatively, 61.7% of Applied Optoelectronics shares are owned by institutional investors. 9.4% of Sequans Communications shares are owned by company insiders. Comparatively, 4.5% of Applied Optoelectronics shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.
Summary
Applied Optoelectronics beats Sequans Communications on 9 of the 15 factors compared between the two stocks.
About Sequans Communications
Sequans Communications S.A. engages in the fabless designing, developing, and supplying of cellular semiconductor solutions for massive and broadband Internet of Things (IoT) markets in Taiwan, Korea, China, rest of Asia, Germany, the United States, and internationally. It offers baseband solutions for use in encoding and decoding data based on 4G and 5G protocols for wireless processing platform for a cellular device; RF transceivers used to transmit and receive wireless transmissions; highly integrated SoC solutions that combine various functions into a single die or package; and LTE modules. The company also provides software, including source code and tools to enable manufacturers to integrate their solutions into their devices; and design support services. The company serves OEMs and ODMs Customers, as well as 4G and 5G wireless carriers. Sequans Communications S.A. was incorporated in 2003 and is based in Paris, France.
About Applied Optoelectronics
Applied Optoelectronics, Inc. designs, manufactures, and sells fiber-optic networking products in the United States, Taiwan, and China. It offers optical modules, optical filters, lasers, laser components, subassemblies, transmitters and transceivers, turn-key equipment, headend, node, distribution equipment, and amplifiers. The company sells its products to internet data center operators, cable television, telecom equipment manufacturers, fiber-to-the-home, and internet service providers through its direct and indirect sales channels. Applied Optoelectronics, Inc. was incorporated in 1997 and is headquartered in Sugar Land, Texas.
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