Ideal Power (NASDAQ:IPWR – Get Free Report) and Sequans Communications (NYSE:SQNS – Get Free Report) are both small-cap industrials companies, but which is the superior business? We will contrast the two companies based on the strength of their valuation, earnings, profitability, analyst recommendations, risk, institutional ownership and dividends.
Earnings and Valuation
This table compares Ideal Power and Sequans Communications”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Ideal Power | $86,032.00 | 438.07 | -$9.95 million | ($1.30) | -3.48 |
| Sequans Communications | $36.76 million | 1.31 | $57.04 million | $2.00 | 0.98 |
Sequans Communications has higher revenue and earnings than Ideal Power. Ideal Power is trading at a lower price-to-earnings ratio than Sequans Communications, indicating that it is currently the more affordable of the two stocks.
Analyst Recommendations
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Ideal Power | 0 | 1 | 0 | 0 | 2.00 |
| Sequans Communications | 0 | 0 | 1 | 0 | 3.00 |
Sequans Communications has a consensus price target of $7.50, suggesting a potential upside of 282.65%. Given Sequans Communications’ stronger consensus rating and higher probable upside, analysts plainly believe Sequans Communications is more favorable than Ideal Power.
Profitability
This table compares Ideal Power and Sequans Communications’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Ideal Power | -7,152.45% | -55.69% | -49.80% |
| Sequans Communications | 154.81% | 186.78% | 40.61% |
Insider and Institutional Ownership
16.4% of Ideal Power shares are owned by institutional investors. Comparatively, 63.3% of Sequans Communications shares are owned by institutional investors. 5.0% of Ideal Power shares are owned by company insiders. Comparatively, 9.4% of Sequans Communications shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.
Volatility & Risk
Ideal Power has a beta of 1.05, meaning that its share price is 5% more volatile than the S&P 500. Comparatively, Sequans Communications has a beta of 0.51, meaning that its share price is 49% less volatile than the S&P 500.
Summary
Sequans Communications beats Ideal Power on 12 of the 14 factors compared between the two stocks.
About Ideal Power
Ideal Power Inc. focuses on the development and commercialization of its bidirectional bipolar junction TRANsistor solid-state switch technology. It also offers SymCool Power Module designed to meet low conduction loss needs of the solid-state circuit breaker market. The company serves electric and hybrid electric vehicles, electric vehicle charging, renewable energy and energy storage system power converters, uninterruptible power supplies for data centers, industrial motor drives, solid-state circuit breakers, distribution and transmission switches and controls, and other industrial and military markets. The company was formerly known as Ideal Power Converters Inc. and changed its name to Ideal Power Inc. in July 2013. Ideal Power Inc. was incorporated in 2007 and is headquartered in Austin, Texas.
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.
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