Financial Analysis: Sequans Communications (NYSE:SQNS) & Quantum-Si (NASDAQ:QSI)

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

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for Sequans Communications and Quantum-Si, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Sequans Communications	1	0	1	2	3.00
Quantum-Si	1	1	2	0	2.25

Sequans Communications currently has a consensus price target of $8.25, suggesting a potential upside of 26.63%. Quantum-Si has a consensus price target of $3.73, suggesting a potential upside of 145.07%. Given Quantum-Si’s higher possible upside, analysts plainly believe Quantum-Si is more favorable than Sequans Communications.

Profitability

This table compares Sequans Communications and Quantum-Si’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Sequans Communications	142.92%	119.94%	47.45%
Quantum-Si	-3,677.97%	-47.90%	-42.56%

Risk & Volatility

Sequans Communications has a beta of 0.35, suggesting that its stock price is 65% less volatile than the S&P 500. Comparatively, Quantum-Si has a beta of 2.93, suggesting that its stock price is 193% more volatile than the S&P 500.

Valuation & Earnings

This table compares Sequans Communications and Quantum-Si”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	$37.33 million	2.50	$57.57 million	($8.08)	-0.81
Quantum-Si	$3.06 million	100.58	-$101.01 million	($0.67)	-2.27

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

Institutional & Insider Ownership

63.3% of Sequans Communications shares are owned by institutional investors. Comparatively, 39.9% of Quantum-Si shares are owned by institutional investors. 9.4% of Sequans Communications shares are owned by company insiders. Comparatively, 23.0% of Quantum-Si shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Summary

Sequans Communications beats Quantum-Si on 9 of the 15 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 Quantum-Si

Quantum-Si incorporated, a life sciences company, engages in the development of single-molecule detection platform to enable Next Generation Protein Sequencing (NGPS). The company's platform is comprised of the Platinum NGPS instrument; the Platinum Analysis Software service; and reagent kits and semiconductor chips for use with its instruments. It is used in protein identification, protein variants, antibody characterization, biomarker identification, and post translational modification analysis applications. The company was founded in 2013 is headquartered in Branford, Connecticut.