Head-To-Head Comparison: STMicroelectronics (STM) versus POET Technologies (POETF)
STMicroelectronics (NYSE:STM) and POET Technologies (OTCMKTS:POETF) are both computer and technology companies, but which is the superior business? We will contrast the two companies based on the strength of their risk, earnings, profitability, analyst recommendations, institutional ownership, valuation and dividends.
Institutional & Insider Ownership
4.0% of STMicroelectronics shares are held by institutional investors. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.
This table compares STMicroelectronics and POET Technologies’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
This is a summary of recent ratings and price targets for STMicroelectronics and POET Technologies, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
STMicroelectronics presently has a consensus target price of $17.50, suggesting a potential downside of 5.81%. POET Technologies has a consensus target price of $2.00, suggesting a potential upside of 751.06%. Given POET Technologies’ stronger consensus rating and higher possible upside, analysts clearly believe POET Technologies is more favorable than STMicroelectronics.
Valuation & Earnings
This table compares STMicroelectronics and POET Technologies’ top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|STMicroelectronics||$9.66 billion||1.72||$1.29 billion||$1.43||12.99|
|POET Technologies||$2.79 million||24.26||-$12.79 million||($0.05)||-4.70|
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.
STMicroelectronics pays an annual dividend of $0.20 per share and has a dividend yield of 1.1%. POET Technologies does not pay a dividend. STMicroelectronics pays out 14.0% of its earnings in the form of a dividend.
Risk and Volatility
STMicroelectronics has a beta of 1.07, meaning that its stock price is 7% more volatile than the S&P 500. Comparatively, POET Technologies has a beta of 1.03, meaning that its stock price is 3% more volatile than the S&P 500.
STMicroelectronics beats POET Technologies on 11 of the 15 factors compared between the two stocks.
STMicroelectronics Company Profile
STMicroelectronics N.V., together with its subsidiaries, develops, manufactures, and markets semiconductor products worldwide. It operates through Automotive and Discrete Group; Analog, MEMS and Sensors Group; and Microcontrollers and Digital ICs Group segments. The company offers a range of products, including discrete and standard commodity components, application-specific integrated circuits, full-custom and semi-custom devices, and application-specific standard products for analog, digital, and mixed-signal applications, as well as silicon chips and smartcards. It also provides subsystems, and assembly and other services. The company sells its products through its distributors and retailers, as well as through sales representatives. STMicroelectronics N.V. was founded in 1987 and is headquartered in Geneva, Switzerland.
POET Technologies Company Profile
POET Technologies Inc. designs, manufactures, and sells semi-conductor products in the United States, Canada, and Singapore. It offers optical light source products and photonic integrated devices for the sensing, data and tele communications, medical, instrumentation, industrial, defense, and security markets. The company was formerly known as Opel Technologies Inc. and changed its name to POET Technologies Inc. in June 2013. POET Technologies Inc. is headquartered in Toronto, Canada.
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