POET Technologies (NASDAQ:POET – Get Free Report) and GSI Technology (NASDAQ:GSIT – Get Free Report) are both small-cap technology companies, but which is the better investment? We will compare the two companies based on the strength of their analyst recommendations, risk, dividends, valuation, earnings, institutional ownership and profitability.
Analyst Ratings
This is a summary of recent ratings for POET Technologies and GSI Technology, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| POET Technologies | 1 | 0 | 0 | 0 | 1.00 |
| GSI Technology | 1 | 0 | 1 | 0 | 2.00 |
POET Technologies currently has a consensus price target of $8.00, indicating a potential upside of 40.97%. GSI Technology has a consensus price target of $9.00, indicating a potential upside of 118.23%. Given GSI Technology’s stronger consensus rating and higher possible upside, analysts clearly believe GSI Technology is more favorable than POET Technologies.
Earnings and Valuation
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| POET Technologies | $1.08 million | 806.85 | -$62.96 million | ($0.58) | -9.78 |
| GSI Technology | $25.15 million | 6.30 | -$13.25 million | ($0.46) | -8.97 |
GSI Technology has higher revenue and earnings than POET Technologies. POET Technologies is trading at a lower price-to-earnings ratio than GSI Technology, indicating that it is currently the more affordable of the two stocks.
Risk & Volatility
POET Technologies has a beta of 0.83, meaning that its share price is 17% less volatile than the S&P 500. Comparatively, GSI Technology has a beta of 2.11, meaning that its share price is 111% more volatile than the S&P 500.
Profitability
This table compares POET Technologies and GSI Technology’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| POET Technologies | -4,423.13% | -11.65% | -10.12% |
| GSI Technology | -62.90% | -21.39% | -17.73% |
Institutional and Insider Ownership
2.0% of POET Technologies shares are owned by institutional investors. Comparatively, 33.2% of GSI Technology shares are owned by institutional investors. 0.5% of POET Technologies shares are owned by insiders. Comparatively, 16.6% of GSI Technology shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.
Summary
GSI Technology beats POET Technologies on 11 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 GSI Technology
GSI Technology, Inc. designs, develops, and markets semiconductor memory solutions to networking, industrial, medical, aerospace, and military customers in the United States, China, Singapore, Germany, the Netherlands, and internationally. It offers associative processing unit products, which are focuses on applications using similarity search in visual search queries for ecommerce, computer vision, drug discovery, cyber security, and service markets. The company also provides static random access memory (SRAM) products, such as SyncBurst for microprocessor cache and other applications; No Bus Turnaround SRAMs to address the needs of networking and telecom applications; SigmaQuad and SigmaDDR products for density and random transaction rate requirements of networking and telecom applications; Low Latency DRAMs, a solution for advanced data networking applications; Asynchronous, a main memory for small cache-less embedded processors for industrial electronics, measurement systems and cost-sensitive networking equipment, and other applications; and specialty SRAMs. In addition, it offers radiation-hardened and radiation-tolerant SRAMs for military/defense and aerospace applications, such as networking satellites and missiles. The company's products are used as components in its original equipment manufacturer customers' products, including routers, switches, and other networking and telecommunications products; military and aerospace applications, such as radar and guidance systems and satellites; test and measurement applications consisting of high-speed testers; automotive applications comprising smart cruise control; medical applications, including ultrasound and CAT scan equipment; and audio/video processing. It markets its products through a network of independent sales representatives and distributors. GSI Technology, Inc. was incorporated in 1995 and is headquartered in Sunnyvale, California.
Receive News & Ratings for POET Technologies Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for POET Technologies and related companies with MarketBeat.com's FREE daily email newsletter.
