Contrasting POET Technologies (NASDAQ:POET) & Skyworks Solutions (NASDAQ:SWKS)

POET Technologies (NASDAQ:POET) and Skyworks Solutions (NASDAQ:SWKS) are both computer and technology companies, but which is the better investment? We will compare the two businesses based on the strength of their risk, valuation, institutional ownership, analyst recommendations, earnings, profitability and dividends.

Valuation and Earnings

This table compares POET Technologies and Skyworks Solutions”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
POET Technologies	$470,000.00	603.21	-$20.27 million	($0.59)	-6.80
Skyworks Solutions	$4.18 billion	3.27	$596.00 million	$3.70	23.08

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

Analyst Recommendations

This is a summary of recent ratings and price targets for POET Technologies and Skyworks Solutions, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
POET Technologies	0	0	2	1	3.33
Skyworks Solutions	3	14	5	0	2.09

POET Technologies currently has a consensus target price of $5.75, suggesting a potential upside of 43.39%. Skyworks Solutions has a consensus target price of $101.00, suggesting a potential upside of 18.25%. Given POET Technologies’ stronger consensus rating and higher probable upside, equities analysts clearly believe POET Technologies is more favorable than Skyworks Solutions.

Institutional & Insider Ownership

2.0% of POET Technologies shares are held by institutional investors. Comparatively, 85.4% of Skyworks Solutions shares are held by institutional investors. 0.5% of POET Technologies shares are held by insiders. Comparatively, 0.3% of Skyworks Solutions shares are held by 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.

Risk and Volatility

POET Technologies has a beta of 0.33, suggesting that its stock price is 67% less volatile than the S&P 500. Comparatively, Skyworks Solutions has a beta of 1.21, suggesting that its stock price is 21% more volatile than the S&P 500.

Profitability

This table compares POET Technologies and Skyworks Solutions’ 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%
Skyworks Solutions	14.27%	13.71%	10.48%

Summary

Skyworks Solutions beats POET Technologies on 10 of the 15 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 Skyworks Solutions

Skyworks Solutions, Inc., together with its subsidiaries, designs, develops, manufactures, and markets proprietary semiconductor products in the United States, China, South Korea, Taiwan, Europe, the Middle East, Africa, and the rest of Asia-Pacific. Its product portfolio includes amplifiers, antenna tuners, attenuators, automotive tuners and digital radios, DC/DC converters, demodulators, detectors, diodes, wireless analog system on chip products, directional couplers, diversity receive modules, filters, front-end modules, hybrids, light emitting diode drivers, low noise amplifiers, mixers, modulators, optocouplers/optoisolators, phase locked loops, phase shifters, power dividers/combiners, power over ethernet, power isolators, receivers, switches, synthesizers, timing devices, voltage controlled oscillators/synthesizers, and voltage regulators. The company products are the used in aerospace, automotive, broadband, cellular infrastructure, connected home, defense, entertainment and gaming, industrial, medical, military, smartphone, tablet, and wearable markets. It sells its products through direct sales force, electronic component distributors, and independent sales representatives. Skyworks Solutions, Inc. was founded in 1962 and is based in Irvine, California.