Reviewing Lam Research (NASDAQ:LRCX) and Sequans Communications (NYSE:SQNS)

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

Risk & Volatility

Lam Research has a beta of 1.84, suggesting that its stock price is 84% more volatile than the S&P 500. Comparatively, Sequans Communications has a beta of 0.46, suggesting that its stock price is 54% less volatile than the S&P 500.

Insider and Institutional Ownership

84.6% of Lam Research shares are held by institutional investors. Comparatively, 63.3% of Sequans Communications shares are held by institutional investors. 0.3% of Lam Research shares are held by company insiders. Comparatively, 9.4% of Sequans Communications shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Profitability

This table compares Lam Research and Sequans Communications’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Lam Research	29.07%	58.17%	26.42%
Sequans Communications	142.92%	119.94%	47.45%

Earnings and Valuation

This table compares Lam Research and Sequans Communications”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Lam Research	$18.44 billion	9.92	$5.36 billion	$4.16	34.87
Sequans Communications	$36.76 million	2.99	$57.57 million	$18.50	0.41

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

Analyst Ratings

This is a summary of recent recommendations and price targets for Lam Research and Sequans Communications, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Lam Research	0	8	23	0	2.74
Sequans Communications	1	0	1	2	3.00

Lam Research presently has a consensus target price of $128.04, indicating a potential downside of 11.72%. Sequans Communications has a consensus target price of $8.25, indicating a potential upside of 7.70%. Given Sequans Communications’ stronger consensus rating and higher possible upside, analysts clearly believe Sequans Communications is more favorable than Lam Research.

Summary

Sequans Communications beats Lam Research on 8 of the 15 factors compared between the two stocks.

About Lam Research

Lam Research Corporation designs, manufactures, markets, refurbishes, and services semiconductor processing equipment used in the fabrication of integrated circuits. The company offers ALTUS systems to deposit conformal films for tungsten metallization applications; SABRE electrochemical deposition products for copper interconnect transition that offers copper damascene manufacturing; SOLA ultraviolet thermal processing products for film treatments; and VECTOR plasma-enhanced CVD ALD products. It also provides SPEED gapfill high-density plasma chemical vapor deposition products; and Striker single-wafer atomic layer deposition products for dielectric film solutions. In addition, the company offers Flex for dielectric etch applications; Kiyo for conductor etch applications; Syndion for through-silicon via etch applications; and Versys metal products for metal etch processes. Further, it provides Coronus bevel clean products to enhance die yield; Da Vinci, DV-Prime, EOS, and SP series products to address various wafer cleaning applications; and Metryx mass metrology systems for high precision in-line mass measurement in semiconductor wafer manufacturing. The company sells its products and services to semiconductors industry in the United States, China, Europe, Japan, Korea, Southeast Asia, Taiwan, and internationally. The company was incorporated in 1980 and is headquartered in Fremont, California.

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.