Everspin Technologies (NASDAQ:MRAM) and Sequans Communications (NYSE:SQNS) Financial Contrast

Everspin Technologies (NASDAQ:MRAM) and Sequans Communications (NYSE:SQNS) are both small-cap business services companies, but which is the better investment? We will contrast the two companies based on the strength of their valuation, analyst recommendations, dividends, risk, profitability, institutional ownership and earnings.

Risk and Volatility

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

Analyst Recommendations

This is a summary of current ratings and recommmendations for Everspin Technologies and Sequans Communications, as reported by MarketBeat.

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

Everspin Technologies currently has a consensus price target of $9.00, suggesting a potential upside of 44.46%. Sequans Communications has a consensus price target of $7.50, suggesting a potential upside of 159.52%. Given Sequans Communications’ higher possible upside, analysts plainly believe Sequans Communications is more favorable than Everspin Technologies.

Profitability

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

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

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Everspin Technologies	$63.76 million	2.15	$9.05 million	$0.06	103.83
Sequans Communications	$30.56 million	2.36	-$40.99 million	$1.41	2.05

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

44.7% of Everspin Technologies shares are owned by institutional investors. Comparatively, 63.3% of Sequans Communications shares are owned by institutional investors. 6.1% of Everspin Technologies shares are owned by insiders. Comparatively, 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 stock is poised for long-term growth.

Summary

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

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.

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.