Financial Contrast: QuickLogic (QUIK) & Sequans Communications (SQNS)

QuickLogic (NASDAQ: QUIK) and Sequans Communications (NYSE:SQNS) are both small-cap technology companies, but which is the superior stock? We will contrast the two businesses based on the strength of their analyst recommendations, valuation, dividends, risk, profitability, earnings and institutional ownership.

Risk and Volatility

QuickLogic has a beta of -0.16, meaning that its stock price is 116% less volatile than the S&P 500. Comparatively, Sequans Communications has a beta of 2.41, meaning that its stock price is 141% more volatile than the S&P 500.

Profitability

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

Net Margins Return on Equity Return on Assets
QuickLogic -120.37% -76.28% -49.70%
Sequans Communications -46.93% -256.90% -34.40%

Analyst Recommendations

This is a breakdown of recent ratings and target prices for QuickLogic and Sequans Communications, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
QuickLogic 0 0 2 0 3.00
Sequans Communications 0 0 7 0 3.00

QuickLogic presently has a consensus target price of $2.25, suggesting a potential upside of 22.28%. Sequans Communications has a consensus target price of $3.96, suggesting a potential upside of 76.19%. Given Sequans Communications’ higher probable upside, analysts clearly believe Sequans Communications is more favorable than QuickLogic.

Earnings & Valuation

This table compares QuickLogic and Sequans Communications’ top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
QuickLogic $11.42 million 12.92 -$19.14 million ($0.20) -9.20
Sequans Communications $45.58 million 3.91 -$24.78 million ($0.31) -7.26

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

Insider & Institutional Ownership

19.0% of QuickLogic shares are owned by institutional investors. Comparatively, 31.8% of Sequans Communications shares are owned by institutional investors. 5.9% of QuickLogic shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Summary

Sequans Communications beats QuickLogic on 8 of the 13 factors compared between the two stocks.

About QuickLogic

QuickLogic Corporation develops and markets semiconductor and software algorithm solutions. The Company’s solutions primarily target smartphones, wearable devices, tablets, and the Internet-of-Things (IoT). The Company is a fabless semiconductor provider of flexible sensor processing solutions, ultra-low power display bridges, and ultra-low power Field Programmable Gate Arrays (FPGAs). The Company’s solutions integrate multi-core processing, programmable logic, sensor fusion and context aware algorithms, and embedded software. The Company’s solutions are created from its new silicon platforms, including EOS, ArcticLink III, PolarPro 3, PolarPro II, PolarPro, and Eclipse II products, its mature products, which are produced on semiconductor processes over 180 nanometers, primarily include its pASIC 3 and QuickRAM, as well as royalty revenue, programming hardware and design software. Its sensor algorithm software includes SenseMe software library.

About Sequans Communications

Sequans Communications S.A. is a fabless designer, developer and supplier of fourth Generation long term evolution (4G LTE) semiconductor solutions for wireless broadband applications, with a specific focus on the single-mode device market. Its semiconductor solutions integrate baseband processor and radio frequency (RF) transceiver integrated circuits (ICs) along with its signal processing techniques, algorithms and software stacks. In the broadband data device market, its solutions serve as the wireless communications platform in devices, such as smartphones; Universal Serial Bus (USB) dongles; portable routers; embedded wireless modems for laptops, tablets, and other consumer multimedia devices; and customer-premises equipment, such as fixed wireless access modems, routers and residential gateways. The Company’s products include SQN3330, SQN3223, SQN3221, SQN3241, VZ120Q, VZ22Q, VZ22M, US60L, SQN3220, SQN3240, SQN3120, SQN5120, SQN3140, VZ20Q, VZ20M, SQN1210 and SQN1220.

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