Head-To-Head Comparison: Sequans Communications (NYSE:SQNS) versus Tower Semiconductor (NASDAQ:TSEM)

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

Earnings and Valuation

This table compares Sequans Communications and Tower Semiconductor”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Sequans Communications	$27.19 million	1.39	-$102.44 million	($12.60)	-0.21
Tower Semiconductor	$1.57 billion	16.12	$220.47 million	$1.93	116.32

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

Insider & Institutional Ownership

63.3% of Sequans Communications shares are held by institutional investors. Comparatively, 70.5% of Tower Semiconductor shares are held by institutional investors. 9.4% of Sequans Communications shares are held by company insiders. Comparatively, 1.0% of Tower Semiconductor shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Profitability

This table compares Sequans Communications and Tower Semiconductor’s 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%
Tower Semiconductor	14.08%	7.86%	6.84%

Analyst Recommendations

This is a breakdown of recent ratings for Sequans Communications and Tower Semiconductor, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Sequans Communications	1	0	2	1	2.75
Tower Semiconductor	0	3	2	0	2.40

Sequans Communications presently has a consensus target price of $20.33, indicating a potential upside of 668.75%. Tower Semiconductor has a consensus target price of $173.00, indicating a potential downside of 22.94%. Given Sequans Communications’ stronger consensus rating and higher possible upside, research analysts plainly believe Sequans Communications is more favorable than Tower Semiconductor.

Volatility and Risk

Sequans Communications has a beta of 0.42, meaning that its stock price is 58% less volatile than the S&P 500. Comparatively, Tower Semiconductor has a beta of 0.71, meaning that its stock price is 29% less volatile than the S&P 500.

Summary

Tower Semiconductor beats Sequans Communications on 10 of the 14 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 Tower Semiconductor

Tower Semiconductor Ltd., an independent semiconductor foundry, focus on specialty process technologies to manufacture analog intensive mixed-signal semiconductor devices in Israel, the United States, Japan, Europe, and internationally. It provides various customizable process technologies, including SiGe, BiCMOS, mixed signal/CMOS, RF CMOS, CMOS image sensor, integrated power management, and MEMS. The Company also provides design enablement platform for quick and accurate design cycle, as well as transfer optimization and development process services to integrated device manufacturers and fabless companies. It serves various markets, such as consumer electronics, personal computers, communications, automotive, industrial, aerospace, military, and medical device products. The company was incorporated in 1993 and is headquartered in Migdal Haemek, Israel.