POET Technologies (NASDAQ:POET – Get Free Report) and Everspin Tech (NASDAQ:MRAM – Get Free Report) are both small-cap technology companies, but which is the superior business? We will compare the two companies based on the strength of their dividends, analyst recommendations, earnings, risk, profitability, valuation and institutional ownership.
Insider & Institutional Ownership
2.0% of POET Technologies shares are owned by institutional investors. Comparatively, 44.7% of Everspin Tech shares are owned by institutional investors. 0.5% of POET Technologies shares are owned by company insiders. Comparatively, 6.3% of Everspin Tech shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.
Profitability
This table compares POET Technologies and Everspin Tech’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| POET Technologies | -4,423.13% | -11.65% | -10.12% |
| Everspin Tech | -14.28% | 9.67% | 7.98% |
Earnings and Valuation
This table compares POET Technologies and Everspin Tech”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| POET Technologies | $1.71 million | 466.13 | -$62.96 million | ($0.58) | -8.97 |
| Everspin Tech | $55.20 million | 6.00 | -$590,000.00 | ($0.11) | -123.73 |
Everspin Tech has higher revenue and earnings than POET Technologies. Everspin Tech is trading at a lower price-to-earnings ratio than POET Technologies, indicating that it is currently the more affordable of the two stocks.
Analyst Recommendations
This is a breakdown of recent ratings and price targets for POET Technologies and Everspin Tech, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| POET Technologies | 1 | 0 | 0 | 0 | 1.00 |
| Everspin Tech | 1 | 0 | 2 | 0 | 2.33 |
POET Technologies presently has a consensus target price of $8.00, suggesting a potential upside of 53.85%. Everspin Tech has a consensus target price of $22.00, suggesting a potential upside of 61.65%. Given Everspin Tech’s stronger consensus rating and higher probable upside, analysts plainly believe Everspin Tech is more favorable than POET Technologies.
Volatility and Risk
POET Technologies has a beta of 0.83, suggesting that its stock price is 17% less volatile than the S&P 500. Comparatively, Everspin Tech has a beta of 1.88, suggesting that its stock price is 88% more volatile than the S&P 500.
Summary
Everspin Tech beats POET Technologies on 13 of the 14 factors compared between the two stocks.
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.
About Everspin Tech
Everspin Technologies, Inc. engages in the manufacture and sale of magnetoresistive random access memory (MRAM) products in the United States, Japan, Hong Kong, Germany, Singapore, China, Canada, and internationally. It offers Toggle MRAM, spin-transfer torque MRAM, and tunnel magneto resistance sensor products, as well as foundry services for MRAM products. The company provides its products for applications, including industrial, medical, automotive/transportation, aerospace, and data center markets. It serves original equipment manufacturers, contract manufacturers, and original design manufacturers through a direct sales channel, and a network of representatives and distributors. Everspin Technologies, Inc. was incorporated in 2008 and is headquartered in Chandler, Arizona.
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