Contrasting POET Technologies (NASDAQ:POET) and Power Integrations (NASDAQ:POWI)

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

Insider and Institutional Ownership

2.0% of POET Technologies shares are held by institutional investors. 0.5% of POET Technologies shares are held by insiders. Comparatively, 1.5% of Power Integrations shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Volatility & Risk

POET Technologies has a beta of 0.7, meaning that its stock price is 30% less volatile than the S&P 500. Comparatively, Power Integrations has a beta of 1.21, meaning that its stock price is 21% more volatile than the S&P 500.

Analyst Ratings

This is a summary of current ratings and price targets for POET Technologies and Power Integrations, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
POET Technologies	0	0	1	0	3.00
Power Integrations	0	2	3	0	2.60

POET Technologies presently has a consensus target price of $7.50, suggesting a potential upside of 228.95%. Power Integrations has a consensus target price of $86.17, suggesting a potential upside of 28.70%. Given POET Technologies’ stronger consensus rating and higher probable upside, research analysts plainly believe POET Technologies is more favorable than Power Integrations.

Earnings & Valuation

This table compares POET Technologies and Power Integrations’ revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
POET Technologies	$470,000.00	234.02	-$20.27 million	($0.51)	-4.47
Power Integrations	$444.54 million	8.57	$55.74 million	$0.97	69.02

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
POET Technologies	N/A	-207.55%	-160.39%
Power Integrations	12.54%	6.46%	5.84%

Summary

Power Integrations beats POET Technologies on 10 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 Power Integrations

Power Integrations, Inc. designs, develops, manufactures, and markets analog and mixed-signal integrated circuits (ICs), and other electronic components and circuitry used in high-voltage power conversion worldwide. The company provides a range of alternating current to direct current power conversion products that address power supply ranging from less than one watt of output to approximately 500 watts of output for mobile-device chargers, consumer appliances, utility meters, LCD monitors, main and standby power supplies for desktop computers and TVs, LED lighting, and various other consumer and industrial applications, as well as power conversion in high-power applications comprising industrial motors, solar and wind-power systems, electric vehicles, and high-voltage DC transmission systems. It also offers high-voltage diodes; InnoSwitch IC for electric vehicles; high-voltage gate-driver products used to operate high-voltage switches, such as insulated-gate bipolar transistors and silicon-carbide MOSFETs under the SCALE and SCALE-2 product-family names; and SCALE-iDriver for use in powertrain and charging applications for electric vehicles. In addition, the company provides motor-driver ICs for use in refrigerator compressors, ceiling fans, and air purifiers, as well as pumps, fans, and blowers used in consumer appliances, such as dishwashers and laundry machines. It serves communications, computer, consumer, and industrial markets. The company sells its products to original equipment manufacturers and merchant power supply manufacturers through direct sales staff, as well as a network of independent sales representatives and distributors. Power Integrations, Inc. was incorporated in 1988 and is headquartered in San Jose, California.