Head to Head Survey: Sequans Communications (NYSE:SQNS) versus Peraso (NASDAQ:PRSO)

Peraso (NASDAQ:PRSO) and Sequans Communications (NYSE:SQNS) are both small-cap business services companies, but which is the superior stock? We will compare the two businesses based on the strength of their institutional ownership, dividends, profitability, analyst recommendations, valuation, earnings and risk.

Institutional and Insider Ownership

77.6% of Peraso shares are owned by institutional investors. Comparatively, 63.3% of Sequans Communications shares are owned by institutional investors. 3.9% of Peraso 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 is poised for long-term growth.

Risk and Volatility

Peraso has a beta of 1.51, indicating that its stock price is 51% more volatile than the S&P 500. Comparatively, Sequans Communications has a beta of 0.36, indicating that its stock price is 64% less volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Peraso	-142.26%	-374.33%	-156.30%
Sequans Communications	138.26%	403.46%	31.37%

Earnings & Valuation

This table compares Peraso and Sequans Communications”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Peraso	$13.75 million	0.21	-$16.80 million	($16.41)	-0.05
Sequans Communications	$33.62 million	2.36	-$40.99 million	$1.41	2.25

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

Analyst Recommendations

This is a breakdown of current recommendations for Peraso and Sequans Communications, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Peraso	0	0	2	0	3.00
Sequans Communications	0	0	1	0	3.00

Peraso presently has a consensus target price of $3.38, indicating a potential upside of 302.50%. Sequans Communications has a consensus target price of $7.50, indicating a potential upside of 136.15%. Given Peraso’s higher probable upside, research analysts plainly believe Peraso is more favorable than Sequans Communications.

Summary

Sequans Communications beats Peraso on 8 of the 13 factors compared between the two stocks.

About Peraso

Peraso Inc., a fabless semiconductor company, develops, markets, and sells semiconductor devices and modules. The company's products include millimeter wavelength (mmWave) ICs, including baseband IC, various mmWave radio frequency, integrated circuits, as well as associated antenna technology; and mmWave antenna modules. It also provides accelerator engine products, comprising bandwidth engine for high-performance applications where throughput is critical; and quad partition rate, which allows for parallel accesses to multiple partitions of the memory simultaneously. Its mmWave products are used for various applications, such as multi-gigabit point-to-point (PtMP) wireless links; and fixed wireless access in the 5G operating bands, as well as consumer applications, such as wireless video streaming, and untethered augmented reality and virtual reality. The company also licenses intellectual property, as well as offers non-recurring engineering services. It markets its products through direct sales personnel, as well as sells representatives and distributors. The company was formerly knowns as MoSys, Inc. and changed its name to Peraso Inc. in December 2021. Peraso Inc. was incorporated in 1991 and is based in San Jose, 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.