Sequans Communications (NYSE:SQNS) & Advantest (OTCMKTS:ATEYY) Financial Review

Advantest (OTCMKTS:ATEYY) and Sequans Communications (NYSE:SQNS) are both computer and technology companies, but which is the superior investment? We will contrast the two companies based on the strength of their profitability, analyst recommendations, risk, earnings, valuation, institutional ownership and dividends.

Insider and Institutional Ownership

0.0% of Advantest shares are owned by institutional investors. Comparatively, 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 hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Risk & Volatility

Advantest has a beta of 1.49, suggesting that its share price is 49% more volatile than the S&P 500. Comparatively, Sequans Communications has a beta of 0.16, suggesting that its share price is 84% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of current recommendations and price targets for Advantest and Sequans Communications, as provided by MarketBeat.com.

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

Sequans Communications has a consensus price target of $3.02, indicating a potential upside of 438.49%. Given Sequans Communications’ higher possible upside, analysts clearly believe Sequans Communications is more favorable than Advantest.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Advantest	12.76%	15.48%	9.81%
Sequans Communications	-172.27%	-1,229.91%	-38.66%

Earnings & Valuation

This table compares Advantest and Sequans Communications’ revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Advantest	$3.37 billion	8.98	$431.46 million	$0.58	70.69
Sequans Communications	$33.62 million	1.02	-$40.99 million	($0.79)	-0.70

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

Summary

Advantest beats Sequans Communications on 9 of the 13 factors compared between the two stocks.

About Advantest

Advantest Corporation manufactures and sells semiconductors, component test system products, and mechatronics systems in Japan, the United States, Europe, and Asia. The company operates through three segments: Semiconductor and Component Test System; Mechatronics Related Business; and Service and other departments. The Semiconductor and Component Test System segment provides customers with test system products for the semiconductor industry and the electronic parts industry, as well as offers test systems for SoC semiconductor devices, and test systems for memory semiconductors devices. The Mechatronics Related Business segment provides test handlers; mechatronic-applied products for handling semiconductor devices; and device interfaces, which serve as interfaces with the devices that are measured, as well as nano-technology related products. The Service And Other Departments segment provides test solutions of system level testing customer solutions for the semiconductor and modules, and support services. This segment is also involved in the sale of consumables and used products, and equipment lease business, and others. It also engages in the research and development activities and provides maintenance and support services. The company was incorporated in 1946 and is headquartered in Tokyo, Japan.

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.