Reviewing Sequans Communications (NYSE:SQNS) and Ichor (NASDAQ:ICHR)

Ichor (NASDAQ:ICHR) and Sequans Communications (NYSE:SQNS) are both small-cap computer and technology companies, but which is the better stock? We will compare the two companies based on the strength of their risk, analyst recommendations, institutional ownership, valuation, dividends, earnings and profitability.

Analyst Ratings

This is a breakdown of recent ratings for Ichor and Sequans Communications, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Ichor 0 1 6 0 2.86
Sequans Communications 0 0 4 0 3.00

Ichor presently has a consensus target price of $39.14, indicating a potential upside of 5.73%. Sequans Communications has a consensus target price of $10.13, indicating a potential upside of 28.16%. Given Sequans Communications’ stronger consensus rating and higher probable upside, analysts clearly believe Sequans Communications is more favorable than Ichor.

Institutional & Insider Ownership

72.3% of Ichor shares are held by institutional investors. Comparatively, 51.0% of Sequans Communications shares are held by institutional investors. 3.9% of Ichor shares are held by insiders. Comparatively, 9.4% of Sequans Communications shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Volatility and Risk

Ichor has a beta of 2.37, meaning that its stock price is 137% more volatile than the S&P 500. Comparatively, Sequans Communications has a beta of 1.16, meaning that its stock price is 16% more volatile than the S&P 500.

Earnings & Valuation

This table compares Ichor and Sequans Communications’ top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Ichor $620.84 million 1.39 $10.73 million $0.95 38.97
Sequans Communications $30.86 million 6.13 -$36.70 million ($1.37) -5.77

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

Profitability

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

Net Margins Return on Equity Return on Assets
Ichor 3.34% 17.61% 7.12%
Sequans Communications -124.32% N/A -46.36%

Summary

Ichor beats Sequans Communications on 10 of the 14 factors compared between the two stocks.

About Ichor

Ichor Holdings, Ltd. engages in the design, engineering, and manufacture of fluid delivery subsystems and components for semiconductor capital equipment. It primarily offers gas and chemical delivery subsystems that are used in the manufacturing of semiconductor devices. The company's gas delivery subsystems deliver, monitor, and control gases used in semiconductor manufacturing processes, such as etch and deposition; and chemical delivery subsystems blend and dispense the reactive liquid chemistries used in semiconductor manufacturing processes comprising chemical-mechanical planarization, electroplating, and cleaning. It also manufactures precision machined components, weldments, and proprietary products for use in fluid delivery systems. The company operates in the United States, Europe, Singapore, and internationally. Ichor Holdings, Ltd. was founded in 1999 and is headquartered in Fremont, California.

About Sequans Communications

Sequans Communications S.A. develops and provides 5G and 4G chips and modules for massive, broadband, and critical Internet of Things (IoT) markets. For 5G/4G massive IoT applications, the company provides a comprehensive product portfolio based on its flagship Monarch LTE-M/NB-IoT and Calliope Cat 1 chip platforms featuring low power consumption, a set of integrated functionalities, and deployment capability. For 5G/4G broadband and critical IoT applications, Sequans Communications S.A. offers a product portfolio based on its Cassiopeia Cat 4/Cat 6 4G and high-end Taurus 5G chip platforms optimized for residential, enterprise, and industrial applications. The company was founded in 2003 and is headquartered in Paris, France with additional offices in the United States, the United Kingdom, Israel, Hong Kong, Singapore, Taiwan, South Korea, and China.

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