Critical Review: Sparton Corporation (SPA) versus Sequans Communications (SQNS)
Sparton Corporation (NYSE: SPA) and Sequans Communications (NYSE:SQNS) are both small-cap computer and technology companies, but which is the superior business? We will contrast the two businesses based on the strength of their analyst recommendations, institutional ownership, risk, earnings, profitability, valuation and dividends.
This is a breakdown of recent ratings and price targets for Sparton Corporation and Sequans Communications, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Sparton Corporation presently has a consensus price target of $22.00, suggesting a potential downside of 5.58%. Sequans Communications has a consensus price target of $5.04, suggesting a potential upside of 47.37%. Given Sequans Communications’ stronger consensus rating and higher probable upside, analysts clearly believe Sequans Communications is more favorable than Sparton Corporation.
Risk and Volatility
Sparton Corporation has a beta of 1.35, meaning that its share price is 35% more volatile than the S&P 500. Comparatively, Sequans Communications has a beta of 2.56, meaning that its share price is 156% more volatile than the S&P 500.
Institutional & Insider Ownership
67.9% of Sparton Corporation shares are held by institutional investors. Comparatively, 31.9% of Sequans Communications shares are held by institutional investors. 5.0% of Sparton Corporation shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.
Valuation & Earnings
This table compares Sparton Corporation and Sequans Communications’ revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Sparton Corporation||$400.14 million||0.57||$22.79 million||$0.13||179.23|
|Sequans Communications||$52.06 million||5.24||-$11.89 million||($0.30)||-11.40|
Sparton Corporation has higher revenue and earnings than Sequans Communications. Sequans Communications is trading at a lower price-to-earnings ratio than Sparton Corporation, indicating that it is currently the more affordable of the two stocks.
This table compares Sparton Corporation and Sequans Communications’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Sparton Corporation beats Sequans Communications on 8 of the 13 factors compared between the two stocks.
Sparton Corporation Company Profile
Sparton Corporation is a provider of design, development and manufacturing services for electromechanical devices, as well as engineered products complementary to the same electromechanical value stream. The Company operates through two segments: Manufacturing & Design Services (MDS) and Engineered Components & Products (ECP). The Company serves the medical and biotechnology, military and aerospace, and industrial and commercial markets. Its products and services include offerings for original equipment manufacturers (OEM) and emerging technology (ET) customers, which utilize microprocessor-based systems, such as transducers, printed circuit boards and assemblies, and sensors, as well as development and design engineering services. It develops and manufactures sonobuoys, which are anti-submarine warfare (ASW) devices. The Company also manufactures rugged flat panel display systems for military panel personal computer workstations, air traffic control and industrial applications.
Sequans Communications Company Profile
Sequans Communications S.A. is a fabless designer, developer and supplier of fourth Generation long term evolution (4G LTE) semiconductor solutions for wireless broadband applications, with a specific focus on the single-mode device market. Its semiconductor solutions integrate baseband processor and radio frequency (RF) transceiver integrated circuits (ICs) along with its signal processing techniques, algorithms and software stacks. In the broadband data device market, its solutions serve as the wireless communications platform in devices, such as smartphones; Universal Serial Bus (USB) dongles; portable routers; embedded wireless modems for laptops, tablets, and other consumer multimedia devices; and customer-premises equipment, such as fixed wireless access modems, routers and residential gateways. The Company’s products include SQN3330, SQN3223, SQN3221, SQN3241, VZ120Q, VZ22Q, VZ22M, US60L, SQN3220, SQN3240, SQN3120, SQN5120, SQN3140, VZ20Q, VZ20M, SQN1210 and SQN1220.
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