Sequans Communications (NYSE:SQNS – Get Free Report) and Photronics (NASDAQ:PLAB – Get Free Report) are both small-cap computer and technology companies, but which is the superior investment? We will contrast the two businesses based on the strength of their dividends, risk, analyst recommendations, earnings, profitability, institutional ownership and valuation.
Volatility and Risk
Sequans Communications has a beta of 0.14, meaning that its share price is 86% less volatile than the S&P 500. Comparatively, Photronics has a beta of 1.41, meaning that its share price is 41% more volatile than the S&P 500.
Analyst Ratings
This is a breakdown of recent recommendations for Sequans Communications and Photronics, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Sequans Communications | 0 | 1 | 1 | 0 | 2.50 |
| Photronics | 0 | 1 | 0 | 0 | 2.00 |
Insider & Institutional Ownership
63.3% of Sequans Communications shares are held by institutional investors. Comparatively, 88.4% of Photronics shares are held by institutional investors. 9.4% of Sequans Communications shares are held by company insiders. Comparatively, 3.9% of Photronics shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.
Profitability
This table compares Sequans Communications and Photronics’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Sequans Communications | -122.10% | -1,218.46% | -36.74% |
| Photronics | 15.34% | 10.37% | 8.69% |
Earnings & Valuation
This table compares Sequans Communications and Photronics’ revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Sequans Communications | $33.62 million | 0.87 | -$41.04 million | ($0.70) | -0.68 |
| Photronics | $897.32 million | 2.07 | $125.49 million | $2.23 | 13.15 |
Photronics has higher revenue and earnings than Sequans Communications. Sequans Communications is trading at a lower price-to-earnings ratio than Photronics, indicating that it is currently the more affordable of the two stocks.
Summary
Photronics 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 Photronics
Photronics, Inc., together with its subsidiaries, engages in the manufacture and sale of photomask products and services in the United States, Taiwan, China, Korea, Europe, and internationally. It offers photomasks that are used in the manufacture of integrated circuits and flat panel displays (FPDs); and to transfer circuit patterns onto semiconductor wafers, and FDP substrates. The company offers electrical and optical components. It sells its products to semiconductor and FPD manufacturers, designers, and foundries, as well as to other high-performance electronics manufacturers through its sales personnel and customer service representatives. The company was formerly known as Photronic Labs, Inc. and changed its name to Photronics, Inc. in 1990. Photronics, Inc. was incorporated in 1969 and is based in Brookfield, Connecticut.
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