Valens Semiconductor (NYSE:VLN – Get Free Report) and Sequans Communications (NYSE:SQNS – Get Free Report) are both small-cap computer and technology companies, but which is the better business? We will contrast the two businesses based on the strength of their earnings, profitability, risk, institutional ownership, valuation, dividends and analyst recommendations.
Insider and Institutional Ownership
33.9% of Valens Semiconductor shares are held by institutional investors. Comparatively, 63.3% of Sequans Communications shares are held by institutional investors. 58.9% of Valens Semiconductor shares are held by insiders. Comparatively, 9.4% of Sequans Communications shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.
Earnings & Valuation
This table compares Valens Semiconductor and Sequans Communications”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Valens Semiconductor | $57.86 million | 2.75 | -$36.58 million | ($0.29) | -5.36 |
| Sequans Communications | $36.76 million | 2.15 | $57.57 million | ($8.08) | -0.68 |
Sequans Communications has lower revenue, but higher earnings than Valens Semiconductor. Valens Semiconductor is trading at a lower price-to-earnings ratio than Sequans Communications, indicating that it is currently the more affordable of the two stocks.
Volatility and Risk
Valens Semiconductor has a beta of 0.25, meaning that its stock price is 75% less volatile than the S&P 500. Comparatively, Sequans Communications has a beta of 0.26, meaning that its stock price is 74% less volatile than the S&P 500.
Profitability
This table compares Valens Semiconductor and Sequans Communications’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Valens Semiconductor | -44.38% | -23.12% | -18.88% |
| Sequans Communications | -81.62% | -32.69% | -16.79% |
Analyst Ratings
This is a breakdown of recent ratings for Valens Semiconductor and Sequans Communications, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Valens Semiconductor | 1 | 0 | 1 | 0 | 2.00 |
| Sequans Communications | 1 | 0 | 3 | 1 | 2.80 |
Valens Semiconductor presently has a consensus price target of $3.00, suggesting a potential upside of 92.93%. Sequans Communications has a consensus price target of $10.83, suggesting a potential upside of 96.40%. Given Sequans Communications’ stronger consensus rating and higher probable upside, analysts plainly believe Sequans Communications is more favorable than Valens Semiconductor.
Summary
Sequans Communications beats Valens Semiconductor on 9 of the 15 factors compared between the two stocks.
About Valens Semiconductor
Valens Semiconductor Ltd. engages in the provision of semiconductor products for the audio-video and automotive industries. The company offers HDBaseT technology, which enables the simultaneous delivery of ultra-high-definition digital video and audio, Ethernet, USB, control signals, and power through a single long-reach cable. It also provides audio-video solutions for the enterprise, education, industrial, digital signage, industrial, and medical markets. In addition, it offers automotive chipsets that support advanced driver-assistance systems, automotive data solutions, infotainment, telematics, and backbone connectivity. The company’s product series include VS100, VS2000, VS3000, VS6000, VS7000, Valens USB and power extender, Valens VS6320, USB 3.2 Gen1 extension chipset, VA6000, and VA7000. It has a collaboration with iCatch Technology to develop a 360-degree multi-camera videoconferencing solution. The company operates in Israel, China, Hong Kong, the United States, Japan, Germany, Hungary, and internationally. Valens Semiconductor Ltd. is headquartered in Hod Hasharon, Israel.
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.
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