Sequans Communications (NYSE:SQNS) vs. Sono-Tek (NASDAQ:SOTK) Head-To-Head Comparison

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

Earnings & Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Sequans Communications	$36.76 million	0.61	$57.57 million	$1.85	0.48
Sono-Tek	$20.50 million	2.60	$1.27 million	$0.09	37.61

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

Analyst Ratings

This is a summary of current recommendations and price targets for Sequans Communications and Sono-Tek, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Sequans Communications	0	0	1	1	3.50
Sono-Tek	0	2	0	0	2.00

Sequans Communications currently has a consensus target price of $3.50, suggesting a potential upside of 296.83%. Sono-Tek has a consensus target price of $7.50, suggesting a potential upside of 121.57%. Given Sequans Communications’ stronger consensus rating and higher probable upside, equities analysts clearly believe Sequans Communications is more favorable than Sono-Tek.

Insider & Institutional Ownership

63.3% of Sequans Communications shares are owned by institutional investors. Comparatively, 47.9% of Sono-Tek shares are owned by institutional investors. 9.4% of Sequans Communications shares are owned by insiders. Comparatively, 5.5% of Sono-Tek shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Profitability

This table compares Sequans Communications and Sono-Tek’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Sequans Communications	142.92%	119.94%	47.45%
Sono-Tek	6.93%	8.10%	6.07%

Risk & Volatility

Sequans Communications has a beta of 0.44, suggesting that its share price is 56% less volatile than the S&P 500. Comparatively, Sono-Tek has a beta of -0.25, suggesting that its share price is 125% less volatile than the S&P 500.

Summary

Sequans Communications beats Sono-Tek on 13 of the 15 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 Sono-Tek

Sono-Tek Corporation designs and manufactures ultrasonic coating systems for applying on parts and components for the microelectronics/electronics, alternative energy, medical, industrial, and research and development/other markets worldwide. The company also designs and manufactures custom-engineered ultrasonic coating systems; and provides nozzles and generators for manufacturers' equipment. Its products include integrated multi-axis coating systems, integrated coating systems, fluxing systems, OEM systems, and other related systems. In addition, the company provides surface coating solutions and application consulting services. It markets and distributes its products through direct sales personnel, select independent distributors, and sales representatives. The company was incorporated in 1975 and is based in Milton, New York.