Head to Head Analysis: indie Semiconductor (NASDAQ:INDI) and Sequans Communications (NYSE:SQNS)

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

Analyst Recommendations

This is a breakdown of current recommendations for Sequans Communications and indie Semiconductor, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Sequans Communications	2	0	2	1	2.40
indie Semiconductor	1	1	2	0	2.25

Sequans Communications presently has a consensus price target of $20.33, indicating a potential upside of 402.06%. indie Semiconductor has a consensus price target of $6.92, indicating a potential upside of 76.90%. Given Sequans Communications’ stronger consensus rating and higher probable upside, analysts plainly believe Sequans Communications is more favorable than indie Semiconductor.

Insider & Institutional Ownership

63.3% of Sequans Communications shares are owned by institutional investors. Comparatively, 67.7% of indie Semiconductor shares are owned by institutional investors. 9.4% of Sequans Communications shares are owned by insiders. Comparatively, 2.6% of indie Semiconductor shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Sequans Communications	-617.78%	-58.42%	-29.64%
indie Semiconductor	-69.76%	-29.85%	-13.40%

Risk & Volatility

Sequans Communications has a beta of 0.66, meaning that its stock price is 34% less volatile than the S&P 500. Comparatively, indie Semiconductor has a beta of 2.74, meaning that its stock price is 174% more volatile than the S&P 500.

Earnings and Valuation

This table compares Sequans Communications and indie Semiconductor”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Sequans Communications	$24.33 million	2.39	-$109.28 million	($13.43)	-0.30
indie Semiconductor	$217.39 million	4.02	-$143.07 million	($0.76)	-5.14

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

Summary

indie Semiconductor beats Sequans Communications on 8 of the 14 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 indie Semiconductor

indie Semiconductor, Inc. provides automotive semiconductors and software solutions for advanced driver assistance systems, autonomous vehicle, in-cabin, connected car, and electrification applications in the United States, South America, rest of North America, Greater China, South Korea, rest of the Asia Pacific, and Europe. It offers ultrasonic sensors for parking assist and systems; radar sensors for audio assistance and reverse information; front cameras for vehicle detection, collision avoidance, and sign reading; and side/inside cameras for blind spot and lane change assist, and driver behavior monitoring. The company also provides LiDAR for distance, speed, and obstacle detection, collision avoidance, and emergency brake system; and long range RADAR for audio assistance, obstacle detection, and ACC stop and go. In addition, it designs and manufactures photonic components on various technology platforms, including fiber Bragg gratings, low-noise lasers, athermal and tunable packaging, photonic integration, and low-noise and high-speed electronics. The company was founded in 2007 and is headquartered in Aliso Viejo, California.