Head-To-Head Survey: Kulicke and Soffa Industries (NASDAQ:KLIC) vs. Sequans Communications (NYSE:SQNS)

Sequans Communications (NYSE:SQNS) and Kulicke and Soffa Industries (NASDAQ:KLIC) 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 institutional ownership, earnings, dividends, profitability, risk, valuation and analyst recommendations.

Risk and Volatility

Sequans Communications has a beta of 0.51, indicating that its share price is 49% less volatile than the S&P 500. Comparatively, Kulicke and Soffa Industries has a beta of 1.53, indicating that its share price is 53% more volatile than the S&P 500.

Insider & Institutional Ownership

63.3% of Sequans Communications shares are held by institutional investors. Comparatively, 98.2% of Kulicke and Soffa Industries shares are held by institutional investors. 9.4% of Sequans Communications shares are held by company insiders. Comparatively, 3.4% of Kulicke and Soffa Industries shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Earnings and Valuation

This table compares Sequans Communications and Kulicke and Soffa Industries”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Sequans Communications	$38.86 million	1.25	$57.04 million	$2.18	0.88
Kulicke and Soffa Industries	$691.08 million	2.53	-$69.01 million	$0.36	91.89

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

Analyst Recommendations

This is a breakdown of current recommendations for Sequans Communications and Kulicke and Soffa Industries, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Sequans Communications	0	0	1	0	3.00
Kulicke and Soffa Industries	0	1	3	0	2.75

Sequans Communications presently has a consensus price target of $7.50, suggesting a potential upside of 292.67%. Kulicke and Soffa Industries has a consensus price target of $44.50, suggesting a potential upside of 34.52%. Given Sequans Communications’ stronger consensus rating and higher possible upside, equities research analysts plainly believe Sequans Communications is more favorable than Kulicke and Soffa Industries.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Sequans Communications	154.81%	186.78%	40.61%
Kulicke and Soffa Industries	0.48%	-1.26%	-0.98%

Summary

Sequans Communications beats Kulicke and Soffa Industries on 8 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 Kulicke and Soffa Industries

Kulicke and Soffa Industries, Inc. designs, manufactures, and sells capital equipment and tools used to assemble semiconductor devices. It operates through four segments: Ball Bonding Equipment, Wedge Bonding Equipment, Advanced Solutions, and Aftermarket Products and Services (APS). The company offers ball bonding equipment, wafer level bonding equipment, wedge bonding equipment; and advanced display, die-attach, and thermocompression systems and solutions, as well as tools, spares and services for equipment. It also services, maintains, repairs, and upgrades equipment. The company serves semiconductor device manufacturers, integrated device manufacturers, outsourced semiconductor assembly and test providers, other electronics manufacturers, industrial manufacturers, foundry service providers, and automotive electronics suppliers primarily in the United States and the Asia/Pacific region. The company was founded in 1951 and is headquartered in Fort Washington, Pennsylvania.