Advanced Energy Industries (NASDAQ: AEIS) and Sequans Communications (NYSE:SQNS) are both computer and technology companies, but which is the superior stock? We will contrast the two companies based on the strength of their analyst recommendations, profitability, earnings, institutional ownership, risk, dividends and valuation.

Earnings & Valuation

This table compares Advanced Energy Industries and Sequans Communications’ gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Advanced Energy Industries $577.12 million 5.20 $172.08 million $3.94 19.06
Sequans Communications $52.06 million 4.75 -$11.89 million ($0.30) -10.33

Advanced Energy Industries has higher revenue and earnings than Sequans Communications. Sequans Communications is trading at a lower price-to-earnings ratio than Advanced Energy Industries, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a summary of current ratings for Advanced Energy Industries and Sequans Communications, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Advanced Energy Industries 0 2 2 0 2.50
Sequans Communications 0 0 5 0 3.00

Advanced Energy Industries currently has a consensus price target of $72.00, indicating a potential downside of 4.12%. Sequans Communications has a consensus price target of $5.04, indicating a potential upside of 62.58%. Given Sequans Communications’ stronger consensus rating and higher possible upside, analysts plainly believe Sequans Communications is more favorable than Advanced Energy Industries.

Insider & Institutional Ownership

92.3% of Advanced Energy Industries shares are held by institutional investors. Comparatively, 31.9% of Sequans Communications shares are held by institutional investors. 1.1% of Advanced Energy Industries shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Profitability

This table compares Advanced Energy Industries and Sequans Communications’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Advanced Energy Industries 27.42% 36.19% 25.13%
Sequans Communications -42.44% -212.46% -32.62%

Risk and Volatility

Advanced Energy Industries has a beta of 1.35, meaning that its share price is 35% more volatile than the S&P 500. Comparatively, Sequans Communications has a beta of 2.56, meaning that its share price is 156% more volatile than the S&P 500.

Summary

Advanced Energy Industries beats Sequans Communications on 9 of the 13 factors compared between the two stocks.

About Advanced Energy Industries

Advanced Energy Industries, Inc. is a provider of engineered, precision power conversion, measurement and control solutions. The Company is engaged in designing, manufacturing, selling and supporting its power conversion products and solutions that transform power into various forms in various applications ranging from manufacturing and industrial processes to instrumentation, and test and measurement. It also provides repair and maintenance services for all of its products. Its process power systems include direct current (DC), pulsed DC, low frequency, high voltage, and radio frequency (RF) power supplies, matching networks, remote plasma sources for reactive gas applications and RF instrumentation. These power conversion systems refine, modify and control the raw electrical power from a utility and convert it into power that may be customized and is predictable and repeatable. Its power control modules and thermal instrumentation products are used in the semiconductor industry.

About Sequans Communications

Sequans Communications S.A. is a fabless designer, developer and supplier of fourth Generation long term evolution (4G LTE) semiconductor solutions for wireless broadband applications, with a specific focus on the single-mode device market. Its semiconductor solutions integrate baseband processor and radio frequency (RF) transceiver integrated circuits (ICs) along with its signal processing techniques, algorithms and software stacks. In the broadband data device market, its solutions serve as the wireless communications platform in devices, such as smartphones; Universal Serial Bus (USB) dongles; portable routers; embedded wireless modems for laptops, tablets, and other consumer multimedia devices; and customer-premises equipment, such as fixed wireless access modems, routers and residential gateways. The Company’s products include SQN3330, SQN3223, SQN3221, SQN3241, VZ120Q, VZ22Q, VZ22M, US60L, SQN3220, SQN3240, SQN3120, SQN5120, SQN3140, VZ20Q, VZ20M, SQN1210 and SQN1220.

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