POET Technologies (NASDAQ:POET – Get Free Report) and Allegro MicroSystems (NASDAQ:ALGM – Get Free Report) 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, analyst recommendations, institutional ownership, earnings, dividends and profitability.
Valuation & Earnings
This table compares POET Technologies and Allegro MicroSystems”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 | $762,695.00 | 598.92 | -$56.70 million | ($0.72) | -6.99 |
| Allegro MicroSystems | $788.40 million | 6.22 | -$73.01 million | ($0.16) | -165.63 |
Risk and Volatility
POET Technologies has a beta of 0.37, suggesting that its stock price is 63% less volatile than the S&P 500. Comparatively, Allegro MicroSystems has a beta of 1.72, suggesting that its stock price is 72% more volatile than the S&P 500.
Analyst Ratings
This is a summary of current ratings and recommmendations for POET Technologies and Allegro MicroSystems, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| POET Technologies | 1 | 0 | 1 | 0 | 2.00 |
| Allegro MicroSystems | 1 | 2 | 9 | 0 | 2.67 |
POET Technologies presently has a consensus price target of $7.00, indicating a potential upside of 39.03%. Allegro MicroSystems has a consensus price target of $39.00, indicating a potential upside of 47.16%. Given Allegro MicroSystems’ stronger consensus rating and higher possible upside, analysts clearly believe Allegro MicroSystems is more favorable than POET Technologies.
Insider and Institutional Ownership
2.0% of POET Technologies shares are owned by institutional investors. Comparatively, 56.5% of Allegro MicroSystems shares are owned by institutional investors. 0.5% of POET Technologies shares are owned by insiders. Comparatively, 0.4% of Allegro MicroSystems shares are owned 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.
Profitability
This table compares POET Technologies and Allegro MicroSystems’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| POET Technologies | -11,497.01% | -141.43% | -68.54% |
| Allegro MicroSystems | -9.00% | 2.09% | 1.36% |
Summary
Allegro MicroSystems 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 Allegro MicroSystems
Allegro MicroSystems, Inc., together with its subsidiaries, designs, develops, manufactures, and markets sensor integrated circuits (ICs) and application-specific analog power ICs for motion control and energy-efficient systems. Its products include magnetic sensor ICs, such as position, speed, and current sensor ICs; and power ICs comprising motor driver ICs, regulator and LED driver ICs, and isolated gate drivers. The company sells its products to original equipment manufacturers and distributors primarily in the automotive and industrial markets through its direct sales force, third party distributors, independent sales representatives, and consignment. It operates in the United States, rest of the Americas, Europe, Japan, Greater China, South Korea, and other Asian markets. The company was founded in 1990 and is headquartered in Manchester, New Hampshire. Allegro MicroSystems, Inc. is a subsidiary of Sanken Electric Co., Ltd.
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