Netlist (OTCMKTS:NLST) vs. Sequans Communications (NYSE:SQNS) Financial Survey
by Tristan Rich · The Markets DailySequans Communications (NYSE:SQNS – Get Free Report) and Netlist (OTCMKTS:NLST – Get Free Report) are both small-cap computer and technology companies, but which is the better stock? We will contrast the two companies based on the strength of their institutional ownership, earnings, dividends, profitability, analyst recommendations, valuation and risk.
Analyst Ratings
This is a summary of current recommendations for Sequans Communications and Netlist, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Sequans Communications | 0 | 0 | 1 | 0 | 3.00 |
| Netlist | 0 | 0 | 1 | 0 | 3.00 |
Sequans Communications presently has a consensus target price of $7.50, suggesting a potential upside of 165.96%. Netlist has a consensus target price of $2.00, suggesting a potential upside of 100.00%. Given Sequans Communications’ higher possible upside, research analysts plainly believe Sequans Communications is more favorable than Netlist.
Valuation & Earnings
This table compares Sequans Communications and Netlist”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Sequans Communications | $33.62 million | 2.09 | -$40.99 million | $1.41 | 2.00 |
| Netlist | $69.21 million | 3.93 | -$60.40 million | ($0.22) | -4.55 |
Sequans Communications has higher earnings, but lower revenue than Netlist. Netlist is trading at a lower price-to-earnings ratio than Sequans Communications, indicating that it is currently the more affordable of the two stocks.
Institutional & Insider Ownership
63.3% of Sequans Communications shares are owned by institutional investors. Comparatively, 0.0% of Netlist shares are owned by institutional investors. 9.4% of Sequans Communications shares are owned by company insiders. Comparatively, 2.7% of Netlist shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.
Profitability
This table compares Sequans Communications and Netlist’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Sequans Communications | 138.26% | 403.46% | 31.37% |
| Netlist | -37.19% | -852.20% | -94.11% |
Volatility & Risk
Sequans Communications has a beta of 0.28, indicating that its share price is 72% less volatile than the S&P 500. Comparatively, Netlist has a beta of 1.03, indicating that its share price is 3% more volatile than the S&P 500.
Summary
Sequans Communications beats Netlist on 9 of the 12 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 Netlist
Netlist, Inc. designs, manufactures, and markets memory subsystems for the server, high-performance computing, and communications markets in the United States and internationally. The company portfolio of proprietary technologies and design techniques, includes efficient planar design, alternative packaging techniques, and custom semiconductor logic, to deliver memory subsystems; and sells specialty memory modules and flash-based products for use in data center and industrial applications. It resells component products, including solid state drive (SSD), NAND flash, and dual inline memory module (DIMM) to storage customers, appliance customers, system builders, and cloud and datacenter customers; and sells component inventory to distributors and other users of memory integrated circuits. The company markets and sells its products through a direct sales force and a network of independent sales representatives. Netlist, Inc. was incorporated in 2000 and is headquartered in Irvine, California.