Marvell Technology Group (MRVL) and Sequans Communications (SQNS) Critical Analysis

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

Dividends

Marvell Technology Group pays an annual dividend of $0.24 per share and has a dividend yield of 1.1%. Sequans Communications does not pay a dividend. Marvell Technology Group pays out 23.1% of its earnings in the form of a dividend.

Volatility & Risk

Marvell Technology Group has a beta of 1.05, suggesting that its share price is 5% more volatile than the S&P 500. Comparatively, Sequans Communications has a beta of 2.44, suggesting that its share price is 144% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current ratings and price targets for Marvell Technology Group and Sequans Communications, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Marvell Technology Group 0 4 21 0 2.84
Sequans Communications 0 0 7 0 3.00

Marvell Technology Group presently has a consensus price target of $25.70, indicating a potential upside of 22.29%. Sequans Communications has a consensus price target of $3.75, indicating a potential upside of 82.04%. Given Sequans Communications’ stronger consensus rating and higher possible upside, analysts plainly believe Sequans Communications is more favorable than Marvell Technology Group.

Valuation & Earnings

This table compares Marvell Technology Group and Sequans Communications’ gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Marvell Technology Group $2.41 billion 4.37 $520.83 million $1.04 20.21
Sequans Communications $48.26 million 3.42 -$26.16 million ($0.31) -6.65

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

Insider and Institutional Ownership

34.9% of Sequans Communications shares are held by institutional investors. 0.1% of Marvell Technology Group shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Profitability

This table compares Marvell Technology Group and Sequans Communications’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Marvell Technology Group 22.24% 13.84% 12.09%
Sequans Communications -62.26% -243.68% -40.63%

Summary

Marvell Technology Group beats Sequans Communications on 10 of the 15 factors compared between the two stocks.

Marvell Technology Group Company Profile

Marvell Technology Group Ltd. designs, develops, and markets analog, mixed-signal, digital signal processing, and embedded and standalone integrated circuits. It offers a range of storage products, including hard disk drive (HDD) and solid-state drive controllers, as well as HDD components, such as HDD preamps components; and develops software-enabled silicon solutions comprising serial advanced technology attachment port multipliers, bridges, serial attached SCSI, and non-volatile memory express redundant array of independent disks controllers and converged storage processors for enterprises, data centers, and cloud computing businesses. The company also provides networking products, which includes Ethernet solutions consisting of Ethernet switches, Ethernet physical-layer transceivers, and single-chip network interface devices; and embedded communication processors. In addition, it offers a portfolio of connectivity solutions, including Wi-Fi and Wi-Fi/Bluetooth integrated system-on-a-chip products, which are integrated into various end devices, including enterprise access points, home gateways, multimedia devices, gaming products, printers, automotive infotainment and telematics units, and smart industrial devices. Further, the company provides printer-specific standard products, as well as full-custom and application-specific integrated circuits; and application processors. It has operations in the United States, China, Malaysia, the Philippines, Thailand, Singapore, India, Israel, Japan, South Korea, Taiwan, and Vietnam. Marvell Technology Group Ltd. was founded in 1995 and is headquartered in Hamilton, Bermuda.

Sequans Communications Company Profile

Sequans Communications S.A., together with its subsidiaries, engages in fabless designing, developing, and supplying 4G LTE semiconductor solutions for wireless broadband and Internet of Things applications. Its solutions incorporate baseband processor and radio frequency (RF) transceiver integrated circuits along with proprietary signal processing techniques, algorithms, and software stacks. The company offers baseband solutions used to encode and decode data based on 4G protocols that serve as the wireless processing platform for a 4G device; RF transceivers used to transmit and receive wireless transmissions; and system-on-chip solutions that integrate the baseband and RF transceiver functions. Its solutions serves as the wireless communications platform in various devices, including USB dongles; portable routers; embedded wireless modems for computing and multimedia devices; and customer-premises equipment, such as fixed wireless broadband access modems, routers, and residential gateways. The company's solutions also provide connectivity for industrial devices in transportation, security, asset tracking, retail, smart energy, smart city, agriculture, healthcare, and other applications. It serves OEMs, ODMs, contract manufacturers, or system integrators, as well as distributors who provide customer communications, logistics, and support functions. The company operates in the Asia-Pacific region, including Taiwan, China, South Korea, and Japan; Europe; the Middle East; and North and South America. Sequans Communications S.A. was founded in 2003 and is headquartered in Paris, France.

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