STMicroelectronics (NYSE:STM) vs. POET Technologies (NASDAQ:POET) Head to Head Analysis

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

Risk & Volatility

POET Technologies has a beta of 0.42, suggesting that its share price is 58% less volatile than the S&P 500. Comparatively, STMicroelectronics has a beta of 1.53, suggesting that its share price is 53% more volatile than the S&P 500.

Earnings and Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
POET Technologies	$119,946.00	4,304.89	-$20.27 million	($0.59)	-11.44
STMicroelectronics	$14.23 billion	1.55	$4.21 billion	$2.43	10.05

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

Insider & Institutional Ownership

2.0% of POET Technologies shares are held by institutional investors. Comparatively, 5.1% of STMicroelectronics shares are held by institutional investors. 0.5% of POET Technologies shares are held 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.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
POET Technologies	N/A	-194.16%	-132.32%
STMicroelectronics	16.11%	13.29%	9.19%

Analyst Recommendations

This is a summary of recent recommendations for POET Technologies and STMicroelectronics, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
POET Technologies	0	0	2	1	3.33
STMicroelectronics	1	5	6	1	2.54

POET Technologies currently has a consensus price target of $6.25, suggesting a potential downside of 7.41%. STMicroelectronics has a consensus price target of $36.26, suggesting a potential upside of 48.53%. Given STMicroelectronics’ higher probable upside, analysts plainly believe STMicroelectronics is more favorable than POET Technologies.

Summary

STMicroelectronics beats POET Technologies on 11 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 STMicroelectronics

STMicroelectronics N.V., together with its subsidiaries, designs, develops, manufactures, and sells semiconductor products in Europe, the Middle East, Africa, the Americas, and the Asia Pacific. The company operates through Automotive and Discrete Group; Analog, MEMS and Sensors Group; and Microcontrollers and Digital ICs Group segments. The Automotive and Discrete Group segment offers automotive integrated circuits (ICs), and discrete and power transistor products. The Analog, MEMS and Sensors Group segment provides industrial application-specific integrated circuits (ASICs) and application-specific standard products (ASSPs); general purpose analog products; custom analog ICs; wireless charging solutions; galvanic isolated gate drivers; low and high voltage amplifiers, comparators, and current-sense amplifiers; MasterGaN, a solution that integrates a silicon driver and GaN power transistors in a single package; wireline and wireless connectivity ICs; touch screen controllers; micro-electro-mechanical systems (MEMS) products, including sensors or actuators; and optical sensing solutions. The Microcontrollers and Digital ICs Group segment offers general purpose and secure microcontrollers; and radio frequency (RF) products. It also offers application-specific standard products for analog, digital and mixed-signal applications. In addition, the company provides assembly and other services. It sells its products through distributors and retailers, as well as through sales representatives. The company serves automotive, industrial, personal electronics and communications equipment, and computers and peripherals markets. STMicroelectronics N.V. was incorporated in 1987 and is headquartered in Geneva, Switzerland.