Sequans Communications (NYSE:SQNS) versus Ultra Clean (NASDAQ:UCTT) Financial Analysis

Sequans Communications (NYSE:SQNSGet Free Report) and Ultra Clean (NASDAQ:UCTTGet Free Report) are both small-cap computer and technology companies, but which is the superior stock? We will compare the two companies based on the strength of their analyst recommendations, earnings, profitability, valuation, risk, institutional ownership and dividends.

Volatility & Risk

Sequans Communications has a beta of 0.6, meaning that its share price is 40% less volatile than the S&P 500. Comparatively, Ultra Clean has a beta of 2.09, meaning that its share price is 109% more volatile than the S&P 500.

Valuation & Earnings

This table compares Sequans Communications and Ultra Clean’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Sequans Communications $60.55 million 2.97 -$9.01 million ($0.52) -5.67
Ultra Clean $2.37 billion 0.73 $40.40 million N/A N/A

Ultra Clean has higher revenue and earnings than Sequans Communications.

Profitability

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

Net Margins Return on Equity Return on Assets
Sequans Communications -64.06% -521.77% -26.58%
Ultra Clean 0.03% 5.31% 2.59%

Insider and Institutional Ownership

64.7% of Sequans Communications shares are held by institutional investors. Comparatively, 83.6% of Ultra Clean shares are held by institutional investors. 9.4% of Sequans Communications shares are held by insiders. Comparatively, 2.1% of Ultra Clean shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Analyst Ratings

This is a summary of current ratings and target prices for Sequans Communications and Ultra Clean, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Sequans Communications 0 1 2 0 2.67
Ultra Clean 0 0 3 0 3.00

Sequans Communications presently has a consensus price target of $3.01, indicating a potential upside of 2.03%. Ultra Clean has a consensus price target of $48.33, indicating a potential upside of 25.38%. Given Ultra Clean’s stronger consensus rating and higher probable upside, analysts clearly believe Ultra Clean is more favorable than Sequans Communications.

Summary

Ultra Clean beats Sequans Communications on 11 of the 13 factors compared between the two stocks.

About Sequans Communications

(Get Free Report)

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 Ultra Clean

(Get Free Report)

Ultra Clean Holdings, Inc. develops and supplies critical subsystems, components and parts, and ultra-high purity cleaning and analytical services for the semiconductor industry in the United States and internationally. The company provides ultra-clean valves, high purity connectors, industrial process connectors and valves, pneumatic actuators, manifolds and safety solutions, hoses, pressure gauges, and gas line and component heaters; chemical delivery modules that deliver gases and reactive chemicals in a liquid or gaseous form from a centralized subsystem to the reaction chamber; and gas delivery systems, such as weldments, filters, mass flow controllers, regulators, pressure transducers and valves, component heaters, and an integrated electronic and/or pneumatic control system. It also offers various industrial and automation production equipment; fluid delivery systems consist of one or more chemical delivery units, including PFA tubing, filters, flow controllers, regulators, component heaters, and an integrated electronic and/or pneumatic control system; precision robotic systems; top-plate assemblies; frame assemblies; process modules, a subsystem of semiconductor manufacturing tools that process integrated circuits onto wafers; and other high-level assemblies. In addition, the company provides tool chamber parts cleaning and coating services; micro-contamination analysis services for tool parts, wafers and depositions, chemicals, cleanroom materials, deionized water, and airborne molecular contamination; and analytical verification services for process tool chamber part cleaning. It primarily serves original equipment manufacturing customers in the semiconductor capital equipment and semiconductor integrated device manufacturing industries, as well as display, consumer, medical, energy, industrial, and research equipment industries. Ultra Clean Holdings, Inc. was founded in 1991 and is headquartered in Hayward, California.

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