Contrasting Sequans Communications (NYSE:SQNS) and Astera Labs (NASDAQ:ALAB)

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

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for Sequans Communications and Astera Labs, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Sequans Communications	0	0	1	0	3.00
Astera Labs	0	1	14	1	3.00

Sequans Communications presently has a consensus price target of $7.50, indicating a potential upside of 310.96%. Astera Labs has a consensus price target of $100.00, indicating a potential upside of 3.67%. Given Sequans Communications’ higher probable upside, equities research analysts plainly believe Sequans Communications is more favorable than Astera Labs.

Insider & Institutional Ownership

63.3% of Sequans Communications shares are held by institutional investors. Comparatively, 60.5% of Astera Labs shares are held by institutional investors. 9.4% of Sequans Communications shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Valuation and Earnings

This table compares Sequans Communications and Astera Labs”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Sequans Communications	$38.86 million	1.19	$57.04 million	$2.18	0.84
Astera Labs	$490.47 million	32.43	-$83.42 million	$0.22	438.45

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

Profitability

This table compares Sequans Communications and Astera Labs’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Sequans Communications	154.81%	186.78%	40.61%
Astera Labs	-21.05%	-10.40%	-9.56%

Volatility & Risk

Sequans Communications has a beta of 0.51, suggesting that its share price is 49% less volatile than the S&P 500. Comparatively, Astera Labs has a beta of 0.33, suggesting that its share price is 67% less volatile than the S&P 500.

Summary

Sequans Communications beats Astera Labs on 10 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 Astera Labs

Astera Labs, Inc. designs, manufactures, and sells semiconductor-based connectivity solutions for cloud and AI infrastructure. Its Intelligent Connectivity Platform is comprised of a portfolio of data, network, and memory connectivity products, which are built on a unifying software-defined architecture that enables customers to deploy and operate high performance cloud and AI infrastructure at scale. The company was incorporated in 2017 and is based in Santa Clara, California.