Critical Review: POET Technologies (NASDAQ:POET) & United Microelectronics (NYSE:UMC)

POET Technologies (NASDAQ:POETGet Free Report) and United Microelectronics (NYSE:UMCGet Free Report) 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, earnings, valuation, analyst recommendations, risk, institutional ownership and dividends.

Volatility & Risk

POET Technologies has a beta of 0.37, meaning that its share price is 63% less volatile than the S&P 500. Comparatively, United Microelectronics has a beta of 1.2, meaning that its share price is 20% more volatile than the S&P 500.

Earnings & Valuation

This table compares POET Technologies and United Microelectronics’ revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
POET Technologies $465,777.00 245.45 -$20.27 million ($0.51) -4.65
United Microelectronics $7.25 billion 2.71 $1.95 billion $0.70 11.21

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

Profitability

This table compares POET Technologies and United Microelectronics’ 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%
United Microelectronics 24.79% 15.97% 9.90%

Analyst Ratings

This is a summary of recent ratings and price targets for POET Technologies and United Microelectronics, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
POET Technologies 0 0 1 0 3.00
United Microelectronics 0 2 1 0 2.33

POET Technologies currently has a consensus target price of $7.50, indicating a potential upside of 216.46%. United Microelectronics has a consensus target price of $8.90, indicating a potential upside of 13.38%. Given POET Technologies’ stronger consensus rating and higher probable upside, equities research analysts plainly believe POET Technologies is more favorable than United Microelectronics.

Insider and Institutional Ownership

2.0% of POET Technologies shares are owned by institutional investors. Comparatively, 5.1% of United Microelectronics shares are owned by institutional investors. 0.5% of POET Technologies shares are owned by company insiders. Comparatively, 8.0% of United Microelectronics shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Summary

United Microelectronics beats POET Technologies on 10 of the 13 factors compared between the two stocks.

About POET Technologies

(Get Free Report)

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 United Microelectronics

(Get Free Report)

United Microelectronics Corporation operates as a semiconductor wafer foundry in Taiwan, Singapore, China, Hong Kong, Japan, the United States, Europe, and internationally. The company provides circuit design, mask tooling, wafer fabrication, and assembly and testing services. It serves fabless design companies and integrated device manufacturers. The company was incorporated in 1980 and is headquartered in Hsinchu City, Taiwan.

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