POET Technologies (NASDAQ:POET) and Smartkem (NASDAQ:SMTK) Head to Head Analysis

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

Institutional and Insider Ownership

2.0% of POET Technologies shares are owned by institutional investors. 0.5% of POET Technologies shares are owned by company insiders. Comparatively, 13.8% of Smartkem shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Profitability

This table compares POET Technologies and Smartkem’s 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%
Smartkem	N/A	-167.89%	-111.60%

Earnings and Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
POET Technologies	$119,946.00	4,438.24	-$20.27 million	($0.59)	-11.80
Smartkem	$40,000.00	136.91	-$8.50 million	N/A	N/A

Smartkem has lower revenue, but higher earnings than POET Technologies.

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for POET Technologies and Smartkem, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
POET Technologies	0	0	2	1	3.33
Smartkem	0	0	0	0	0.00

POET Technologies presently has a consensus target price of $6.25, indicating a potential downside of 10.20%. Given POET Technologies’ stronger consensus rating and higher probable upside, equities analysts clearly believe POET Technologies is more favorable than Smartkem.

Summary

POET Technologies beats Smartkem on 7 of the 11 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 Smartkem

SmartKem, Inc., together with its subsidiaries, develops materials and processes used to make organic thin-film (OTFT) transistors for the manufacture of flexible electronics. The company offers TRUFLEX semiconductor and dielectric inks, which uses low temperature printing processes to make transistors for the display industry. Its electronic polymer platform is used in display technologies, such as miniLED, microLED, and AMOLED displays that can drive televisions, laptops, augmented and virtual reality headsets, smartwatches, and smartphones. It also provides prototypes for customers. SmartKem, Inc. was founded in 2009 and is headquartered in Manchester, the United Kingdom.