Sequans Communications (NYSE:SQNS) and Maxeon Solar Technologies (NASDAQ:MAXN) Critical Review

Maxeon Solar Technologies (NASDAQ:MAXN) and Sequans Communications (NYSE:SQNS) are both small-cap technology companies, but which is the better stock? We will contrast the two companies based on the strength of their institutional ownership, profitability, dividends, valuation, analyst recommendations, risk and earnings.

Earnings and Valuation

This table compares Maxeon Solar Technologies and Sequans Communications”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Maxeon Solar Technologies	$176.41 million	0.07	-$614.30 million	($163.07)	-0.00
Sequans Communications	$23.64 million	1.77	-$109.28 million	($10.48)	-0.27

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

Profitability

This table compares Maxeon Solar Technologies and Sequans Communications’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Maxeon Solar Technologies	N/A	N/A	N/A
Sequans Communications	-637.49%	-54.51%	-27.81%

Analyst Ratings

This is a breakdown of current recommendations and price targets for Maxeon Solar Technologies and Sequans Communications, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Maxeon Solar Technologies	1	0	0	0	1.00
Sequans Communications	1	1	2	0	2.25

Sequans Communications has a consensus target price of $11.50, indicating a potential upside of 311.89%. Given Sequans Communications’ stronger consensus rating and higher possible upside, analysts plainly believe Sequans Communications is more favorable than Maxeon Solar Technologies.

Insider & Institutional Ownership

47.7% of Maxeon Solar Technologies shares are owned by institutional investors. Comparatively, 63.3% of Sequans Communications shares are owned by institutional investors. 0.9% of Maxeon Solar Technologies 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 endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Risk & Volatility

Maxeon Solar Technologies has a beta of 1.26, indicating that its share price is 26% more volatile than the S&P 500. Comparatively, Sequans Communications has a beta of 0.83, indicating that its share price is 17% less volatile than the S&P 500.

Summary

Sequans Communications beats Maxeon Solar Technologies on 8 of the 14 factors compared between the two stocks.

About Maxeon Solar Technologies

Maxeon Solar Technologies, Ltd. designs, manufactures, markets, and sells solar panels and related solar system components worldwide. The company provides interdigitated back contact and shingled solar cells and panels under the SunPower brand. It offers its products to dealers, project developers, system integrators, distributors, resellers, and residential and small-scale commercial customers. The company was incorporated in 2019 and is headquartered in Singapore.

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.