SUMCO Corp/ADR (NYSE: SQNS) and Sequans Communications (NYSE:SQNS) are both computer and technology companies, but which is the better investment? We will compare the two businesses based on the strength of their institutional ownership, analyst recommendations, dividends, profitability, risk, earnings and valuation.

Dividends

SUMCO Corp/ADR pays an annual dividend of $0.58 per share and has a dividend yield of 1.6%. Sequans Communications does not pay a dividend. SUMCO Corp/ADR pays out 35.4% of its earnings in the form of a dividend.

Valuation and Earnings

This table compares SUMCO Corp/ADR and Sequans Communications’ top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
SUMCO Corp/ADR $2.32 billion 2.30 $240.45 million $1.64 22.24
Sequans Communications $48.26 million 2.82 -$26.16 million ($0.31) -5.48

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

Institutional and Insider Ownership

37.2% of Sequans Communications shares are owned by institutional investors. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Analyst Recommendations

This is a breakdown of recent ratings and price targets for SUMCO Corp/ADR and Sequans Communications, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
SUMCO Corp/ADR 0 0 0 0 N/A
Sequans Communications 0 0 7 0 3.00

Sequans Communications has a consensus target price of $3.68, indicating a potential upside of 116.39%. Given Sequans Communications’ higher possible upside, analysts plainly believe Sequans Communications is more favorable than SUMCO Corp/ADR.

Risk and Volatility

SUMCO Corp/ADR has a beta of 2.56, meaning that its stock price is 156% more volatile than the S&P 500. Comparatively, Sequans Communications has a beta of 2.14, meaning that its stock price is 114% more volatile than the S&P 500.

Profitability

This table compares SUMCO Corp/ADR and Sequans Communications’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
SUMCO Corp/ADR 13.04% 13.62% 7.09%
Sequans Communications -67.53% -298.34% -44.88%

Summary

SUMCO Corp/ADR beats Sequans Communications on 9 of the 14 factors compared between the two stocks.

SUMCO Corp/ADR Company Profile

SUMCO Corporation, together with its subsidiaries, manufactures and sells silicon wafers for the semiconductor industry in Japan, North America, Asia, and Europe. It offers monocrystalline ingots, as well as polished, annealed, epitaxial, junction isolated, silicon-on-insulator, and reclaimed polished wafers, as well as polycrystalline silicon. The company was formerly known as Sumitomo Mitsubishi Silicon Corp. and changed its name to SUMCO Corporation in August 2005. SUMCO Corporation was founded in 1999 and is headquartered in Tokyo, Japan.

Sequans Communications Company Profile

Sequans Communications S.A., together with its subsidiaries, engages in fabless designing, developing, and supplying 4G LTE semiconductor solutions for wireless broadband and Internet of Things applications. Its solutions incorporate baseband processor and radio frequency (RF) transceiver integrated circuits along with proprietary signal processing techniques, algorithms, and software stacks. The company offers baseband solutions used to encode and decode data based on 4G protocols that serve as the wireless processing platform for a 4G device; RF transceivers used to transmit and receive wireless transmissions; and system-on-chip solutions that integrate the baseband and RF transceiver functions. Its solutions serves as the wireless communications platform in various devices, including USB dongles; portable routers; embedded wireless modems for computing and multimedia devices; and customer-premises equipment, such as fixed wireless broadband access modems, routers, and residential gateways. The company's solutions also provide connectivity for industrial devices in transportation, security, asset tracking, retail, smart energy, smart city, agriculture, healthcare, and other applications. It serves OEMs, ODMs, contract manufacturers, or system integrators, as well as distributors who provide customer communications, logistics, and support functions. The company operates in the Asia-Pacific region, including Taiwan, China, South Korea, and Japan; Europe; the Middle East; and North and South America. Sequans Communications S.A. was founded in 2003 and is headquartered in Paris, France.

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