Reviewing QUALCOMM (NASDAQ:QCOM) and POET Technologies (NASDAQ:POET)

QUALCOMM (NASDAQ:QCOM) and POET Technologies (NASDAQ:POET) are both computer and technology companies, but which is the superior business? We will compare the two companies based on the strength of their earnings, valuation, analyst recommendations, risk, dividends, profitability and institutional ownership.

Earnings & Valuation

This table compares QUALCOMM and POET Technologies”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
QUALCOMM	$38.96 billion	4.40	$10.14 billion	$10.37	15.32
POET Technologies	$40,000.00	11,476.08	-$56.70 million	($0.81)	-6.25

QUALCOMM has higher revenue and earnings than POET Technologies. POET Technologies is trading at a lower price-to-earnings ratio than QUALCOMM, indicating that it is currently the more affordable of the two stocks.

Risk and Volatility

QUALCOMM has a beta of 1.23, indicating that its stock price is 23% more volatile than the S&P 500. Comparatively, POET Technologies has a beta of 0.32, indicating that its stock price is 68% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of current recommendations for QUALCOMM and POET Technologies, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
QUALCOMM	1	10	11	0	2.45
POET Technologies	0	0	2	1	3.33

QUALCOMM currently has a consensus price target of $181.10, indicating a potential upside of 13.97%. POET Technologies has a consensus price target of $6.25, indicating a potential upside of 23.52%. Given POET Technologies’ stronger consensus rating and higher possible upside, analysts plainly believe POET Technologies is more favorable than QUALCOMM.

Insider and Institutional Ownership

74.4% of QUALCOMM shares are held by institutional investors. Comparatively, 2.0% of POET Technologies shares are held by institutional investors. 0.1% of QUALCOMM shares are held by company insiders. Comparatively, 0.5% of POET Technologies shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Profitability

This table compares QUALCOMM and POET Technologies’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
QUALCOMM	26.77%	40.35%	19.74%
POET Technologies	-11,497.01%	-141.43%	-68.54%

Summary

QUALCOMM beats POET Technologies on 10 of the 15 factors compared between the two stocks.

About QUALCOMM

QUALCOMM Incorporated engages in the development and commercialization of foundational technologies for the wireless industry worldwide. It operates through three segments: Qualcomm CDMA Technologies (QCT); Qualcomm Technology Licensing (QTL); and Qualcomm Strategic Initiatives (QSI). The QCT segment develops and supplies integrated circuits and system software based on 3G/4G/5G and other technologies for use in wireless voice and data communications, networking, computing, multimedia, and position location products. The QTL segment grants licenses or provides rights to use portions of its intellectual property portfolio, which include various patent rights useful in the manufacture and sale of wireless products comprising products implementing CDMA2000, WCDMA, LTE and/or OFDMA-based 5G standards and their derivatives. The QSI segment invests in early-stage companies in various industries, including 5G, artificial intelligence, automotive, consumer, enterprise, cloud, IoT, and extended reality, and investments, including non-marketable equity securities and, to a lesser extent, marketable equity securities, and convertible debt instruments. It also provides development, and other services and related products to the United States government agencies and their contractors. The company was incorporated in 1985 and is headquartered in San Diego, California.

About POET Technologies

POET Technologies Inc. designs, develops, manufactures, and sells discrete and integrated opto-electronic solutions in Canada, the United States, Singapore, and China. It offers integration solutions based on the POET Optical Interposer, a novel platform that allows the seamless integration of electronic and photonic devices into a single multi-chip module using advanced wafer-level semiconductor manufacturing techniques. It also develops photonic integrated components. The company serves the data center, telecommunications, Internet of things and industrial sensing, automotive LIDAR, optical coherence tomography for medical devices, and virtual reality systems markets. The company was formerly known as Opel Technologies Inc. and changed its name to POET Technologies Inc. in June 2013. POET Technologies Inc. was incorporated in 1972 and is headquartered in Toronto, Canada.