Head-To-Head Survey: Everspin Technologies (NASDAQ:MRAM) and Sequans Communications (NYSE:SQNS)

Sequans Communications (NYSE:SQNS) and Everspin Technologies (NASDAQ:MRAM) 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 dividends, institutional ownership, analyst recommendations, profitability, valuation, earnings and risk.

Volatility and Risk

Sequans Communications has a beta of 0.36, meaning that its stock price is 64% less volatile than the S&P 500. Comparatively, Everspin Technologies has a beta of 0.9, meaning that its stock price is 10% less volatile than the S&P 500.

Valuation and Earnings

This table compares Sequans Communications and Everspin Technologies”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Sequans Communications	$30.56 million	2.33	-$40.99 million	$1.41	2.02
Everspin Technologies	$53.87 million	2.60	$9.05 million	$0.06	106.33

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

Insider & Institutional Ownership

63.3% of Sequans Communications shares are held by institutional investors. Comparatively, 44.7% of Everspin Technologies shares are held by institutional investors. 9.4% of Sequans Communications shares are held by insiders. Comparatively, 6.1% of Everspin Technologies shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Analyst Ratings

This is a breakdown of current ratings for Sequans Communications and Everspin Technologies, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Sequans Communications	0	0	1	0	3.00
Everspin Technologies	0	0	2	0	3.00

Sequans Communications currently has a consensus price target of $7.50, suggesting a potential upside of 163.16%. Everspin Technologies has a consensus price target of $9.00, suggesting a potential upside of 41.07%. Given Sequans Communications’ higher probable upside, equities research analysts clearly believe Sequans Communications is more favorable than Everspin Technologies.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Sequans Communications	138.26%	403.46%	31.37%
Everspin Technologies	2.85%	2.74%	2.27%

Summary

Sequans Communications beats Everspin Technologies on 7 of the 13 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 Everspin Technologies

Everspin Technologies, Inc. engages in the manufacture and sale of magnetoresistive random access memory (MRAM) products in the United States, Japan, Hong Kong, Germany, Singapore, China, Canada, and internationally. It offers Toggle MRAM, spin-transfer torque MRAM, and tunnel magneto resistance sensor products, as well as foundry services for MRAM products. The company provides its products for applications, including industrial, medical, automotive/transportation, aerospace, and data center markets. It serves original equipment manufacturers, contract manufacturers, and original design manufacturers through a direct sales channel, and a network of representatives and distributors. Everspin Technologies, Inc. was incorporated in 2008 and is headquartered in Chandler, Arizona.