Analyzing Sequans Communications (NYSE:SQNS) & Rohm (OTCMKTS:ROHCY)

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

Analyst Ratings

This is a breakdown of recent recommendations for Sequans Communications and Rohm, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Sequans Communications	1	0	3	1	2.80
Rohm	0	2	0	0	2.00

Sequans Communications presently has a consensus price target of $10.83, indicating a potential upside of 86.94%. Given Sequans Communications’ stronger consensus rating and higher possible upside, equities research analysts plainly believe Sequans Communications is more favorable than Rohm.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Sequans Communications	-81.62%	-32.69%	-16.79%
Rohm	-8.78%	-0.96%	-0.60%

Insider & Institutional Ownership

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

Earnings and Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Sequans Communications	$36.76 million	2.26	$57.57 million	($8.08)	-0.72
Rohm	$2.95 billion	2.15	-$330.42 million	($0.72)	-21.76

Sequans Communications has higher earnings, but lower revenue than Rohm. Rohm 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 & Risk

Sequans Communications has a beta of 0.22, suggesting that its stock price is 78% less volatile than the S&P 500. Comparatively, Rohm has a beta of 1.13, suggesting that its stock price is 13% more volatile than the S&P 500.

Summary

Sequans Communications beats Rohm on 9 of the 15 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 Rohm

ROHM Co., Ltd. manufactures and sells electronic components worldwide. The company operates through three segments: LSI, Semiconductor Devices, and Modules. It provides ICs comprising memory, amplifiers and linear, power management, motor/actuator drivers, resistors, clocks and timers, switches and multiplexers, logic, data converters, sensors and MEMS, display drivers, interfaces, wireless LSIs, audio and video products, speech synthesis LSI, and microcontrollers. The company also offers discrete semiconductor products, such as MOSFETs, bipolar transistors, and diodes; power devices, including power transistors and diodes, SiC power devices, IGBT, and IPM; modules, including optical modules, wireless communication modules, wireless charger modules, and print heads; and opto devices comprising LEDs, LED displays, laser diodes, and optical sensors, as well as foundry services, including thin-film piezoelectric MEMS, wafers, and WL-CSP. Its products are used in industry, automotive, consumer electronics, and telecommunications applications. The company was incorporated in 1940 and is headquartered in Kyoto, Japan.