Reviewing Sequans Communications (NYSE:SQNS) and Wolfspeed (NYSE:WOLF)

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

Earnings and Valuation

This table compares Sequans Communications and Wolfspeed’s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Sequans Communications	$33.62 million	1.07	-$41.04 million	($0.70)	-0.84
Wolfspeed	$921.90 million	3.47	-$329.90 million	($6.08)	-4.18

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

Insider and Institutional Ownership

63.3% of Sequans Communications shares are owned by institutional investors. 9.4% of Sequans Communications shares are owned by company insiders. Comparatively, 0.9% of Wolfspeed shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Analyst Recommendations

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Sequans Communications	0	1	1	0	2.50
Wolfspeed	1	8	5	0	2.29

Sequans Communications currently has a consensus target price of $3.01, suggesting a potential upside of 414.53%. Wolfspeed has a consensus target price of $43.63, suggesting a potential upside of 71.62%. Given Sequans Communications’ stronger consensus rating and higher probable upside, research analysts clearly believe Sequans Communications is more favorable than Wolfspeed.

Volatility and Risk

Sequans Communications has a beta of 0.24, indicating that its stock price is 76% less volatile than the S&P 500. Comparatively, Wolfspeed has a beta of 1.66, indicating that its stock price is 66% more volatile than the S&P 500.

Profitability

This table compares Sequans Communications and Wolfspeed’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%
Wolfspeed	-87.35%	-19.35%	-4.16%

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 Wolfspeed

Wolfspeed, Inc. operates as a powerhouse semiconductor company focuses on silicon carbide and gallium nitride (GaN) technologies in Europe, Hong Kong, China, rest of Asia-Pacific, the United States, and internationally. It offers silicon carbide and GaN materials, including silicon carbide bare wafers, epitaxial wafers, and GaN epitaxial layers on silicon carbide wafers to manufacture products for RF, power, and other applications. The company also provides power devices, such as silicon carbide Schottky diodes, metal oxide semiconductor field effect transistors (MOSFETs), and power modules for customers and distributors to use in applications, including electric vehicles comprising charging infrastructure, server power supplies, solar inverters, uninterruptible power supplies, industrial power supplies, and other applications. In addition, it offers RF devices comprising GaN-based die, high-electron mobility transistors, monolithic microwave integrated circuits, and laterally diffused MOSFET power transistors for telecommunications infrastructure, military, and other commercial applications. The company was formerly known as Cree, Inc. and changed its name to Wolfspeed, Inc. in October 2021. Wolfspeed, Inc. was incorporated in 1987 and is headquartered in Durham, North Carolina.