Head-To-Head Comparison: Everspin Tech (NASDAQ:MRAM) and POET Technologies (NASDAQ:POET)

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

Volatility & Risk

Everspin Tech has a beta of 1.88, meaning that its stock price is 88% more volatile than the S&P 500. Comparatively, POET Technologies has a beta of 0.83, meaning that its stock price is 17% less volatile than the S&P 500.

Institutional and Insider Ownership

44.7% of Everspin Tech shares are owned by institutional investors. Comparatively, 2.0% of POET Technologies shares are owned by institutional investors. 6.3% of Everspin Tech shares are owned by company insiders. Comparatively, 0.5% of POET Technologies shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Analyst Ratings

This is a summary of recent ratings and target prices for Everspin Tech and POET Technologies, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Everspin Tech	1	0	2	0	2.33
POET Technologies	1	0	0	0	1.00

Everspin Tech currently has a consensus target price of $22.00, indicating a potential upside of 74.74%. POET Technologies has a consensus target price of $8.00, indicating a potential upside of 46.52%. Given Everspin Tech’s stronger consensus rating and higher possible upside, research analysts plainly believe Everspin Tech is more favorable than POET Technologies.

Valuation & Earnings

This table compares Everspin Tech and POET Technologies”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Everspin Tech	$55.20 million	5.55	-$590,000.00	($0.11)	-114.45
POET Technologies	$1.08 million	776.28	-$62.96 million	($0.58)	-9.41

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Everspin Tech	-4.22%	7.73%	6.37%
POET Technologies	-4,423.13%	-11.65%	-10.12%

Summary

Everspin Tech beats POET Technologies on 12 of the 13 factors compared between the two stocks.

About Everspin Tech

Everspin Technologies, Inc. engages in the manufacture and sale of magnetoresistive random access memory (MRAM) products in the United States, Japan, Hong Kong, Germany, Singapore, China, Canada, and internationally. It offers Toggle MRAM, spin-transfer torque MRAM, and tunnel magneto resistance sensor products, as well as foundry services for MRAM products. The company provides its products for applications, including industrial, medical, automotive/transportation, aerospace, and data center markets. It serves original equipment manufacturers, contract manufacturers, and original design manufacturers through a direct sales channel, and a network of representatives and distributors. Everspin Technologies, Inc. was incorporated in 2008 and is headquartered in Chandler, Arizona.

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.