Financial Survey: Sequans Communications (NYSE:SQNS) and ChipMOS TECHNOLOGIES (NASDAQ:IMOS)

Sequans Communications (NYSE:SQNS) and ChipMOS TECHNOLOGIES (NASDAQ:IMOS) are both small-cap computer and technology companies, but which is the better business? We will compare the two businesses based on the strength of their institutional ownership, earnings, risk, profitability, analyst recommendations, valuation and dividends.

Insider & Institutional Ownership

63.3% of Sequans Communications shares are held by institutional investors. Comparatively, 7.4% of ChipMOS TECHNOLOGIES shares are held by institutional investors. 9.4% of Sequans Communications shares are held by company insiders. Comparatively, 22.7% of ChipMOS TECHNOLOGIES shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Valuation and Earnings

This table compares Sequans Communications and ChipMOS TECHNOLOGIES’s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Sequans Communications	$33.62 million	1.24	-$41.04 million	($0.70)	-0.97
ChipMOS TECHNOLOGIES	$685.98 million	1.46	$64.26 million	$1.85	14.86

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Sequans Communications	-122.10%	-1,218.46%	-36.74%
ChipMOS TECHNOLOGIES	9.62%	8.60%	4.59%

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for Sequans Communications and ChipMOS TECHNOLOGIES, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Sequans Communications	0	1	1	0	2.50
ChipMOS TECHNOLOGIES	0	0	0	0	N/A

Sequans Communications currently has a consensus price target of $3.02, suggesting a potential upside of 344.04%. Given Sequans Communications’ higher possible upside, equities analysts clearly believe Sequans Communications is more favorable than ChipMOS TECHNOLOGIES.

Volatility and Risk

Sequans Communications has a beta of 0.14, indicating that its stock price is 86% less volatile than the S&P 500. Comparatively, ChipMOS TECHNOLOGIES has a beta of 0.95, indicating that its stock price is 5% less volatile than the S&P 500.

Summary

ChipMOS TECHNOLOGIES beats Sequans Communications on 10 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 ChipMOS TECHNOLOGIES

ChipMOS TECHNOLOGIES INC. researches, develops, manufactures, and sells high-integration and high-precision integrated circuits, and related assembly and testing services in the People's Republic of China, Japan, Singapore, and internationally. It operates through Testing; Assembly; Testing and Assembly for LCD, OLED and Other Display Panel Driver Semiconductors; Bumping; and Others segments. The company provides a range of back-end assembly and testing services, including engineering test, wafer probing, and final test of memory and logic/mixed-signal semiconductors, as well as leadframe-based and organic substrate-based package assembly services for memory and logic/mixed-signal semiconductors; and gold bumping, reel to reel assembly, and test services for LCD, OLED, and other panel display driver semiconductors. Its semiconductors are used in personal computers; graphics applications, such as game consoles; communications equipment; mobile products comprising cellular handsets, tablets, and consumer electronic products; and automotive/industry and display applications, such as display panels. ChipMOS TECHNOLOGIES INC. was incorporated in 1997 and is headquartered in Hsinchu City, Taiwan.