Microchip Technology (NASDAQ:MCHP) and POET Technologies (NASDAQ:POET) Head to Head Survey

Microchip Technology (NASDAQ:MCHP) and POET Technologies (NASDAQ:POET) are both computer and technology companies, but which is the better business? We will contrast the two companies based on the strength of their analyst recommendations, earnings, risk, valuation, profitability, institutional ownership and dividends.

Volatility and Risk

Microchip Technology has a beta of 1.5, suggesting that its stock price is 50% more volatile than the S&P 500. Comparatively, POET Technologies has a beta of 0.42, suggesting that its stock price is 58% less volatile than the S&P 500.

Earnings and Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Microchip Technology	$5.50 billion	5.60	$1.91 billion	$1.43	40.10
POET Technologies	$119,946.00	3,794.19	-$20.27 million	($0.59)	-10.08

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

Profitability

This table compares Microchip Technology and POET Technologies’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Microchip Technology	14.22%	19.47%	8.10%
POET Technologies	N/A	-194.16%	-132.32%

Institutional & Insider Ownership

91.5% of Microchip Technology shares are held by institutional investors. Comparatively, 2.0% of POET Technologies shares are held by institutional investors. 2.1% of Microchip Technology shares are held by company insiders. Comparatively, 0.5% of POET Technologies shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Analyst Ratings

This is a summary of recent recommendations and price targets for Microchip Technology and POET Technologies, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Microchip Technology	1	4	14	0	2.68
POET Technologies	0	0	2	1	3.33

Microchip Technology currently has a consensus price target of $89.63, indicating a potential upside of 56.29%. POET Technologies has a consensus price target of $6.25, indicating a potential upside of 5.04%. Given Microchip Technology’s higher possible upside, equities research analysts plainly believe Microchip Technology is more favorable than POET Technologies.

Summary

Microchip Technology beats POET Technologies on 12 of the 15 factors compared between the two stocks.

About Microchip Technology

Microchip Technology Incorporated engages in the development, manufacture, and sale of smart, connected, and secure embedded control solutions in the Americas, Europe, and Asia. The company offers general purpose 8-bit, 16-bit, and 32-bit mixed-signal microcontrollers; 32-bit embedded mixed-signal microprocessors; and specialized microcontrollers for automotive, industrial, computing, communications, lighting, power supplies, motor control, human machine interface, security, wired connectivity, and wireless connectivity applications. It also provides analog, interface, mixed signal, and timing products comprising power management, linear, mixed-signal, high-voltage, thermal management, discrete diodes, and metal oxide semiconductor field effect transistors (MOSFETS), radio frequency (RF), drivers, safety, security, timing, USB, Ethernet, wireless, and other interface products; field-programmable gate array (FPGA) products; and application development tools that enable system designers to program microcontroller, FPGA, and microprocessor products for specific applications. In addition, the company offers serial electrically erasable programmable read-only memory, serial flash memories, parallel flash memories, serial static random access memories, and serial electrically erasable random access memories for the production of very small footprint devices; and licenses its SuperFlash embedded flash and non-volatile memory technologies to foundries, integrated device manufacturers, and design partners for use in the manufacture of microcontroller products, gate array, RF, analog, and neuromorphic compute products that require embedded non-volatile memory, as well as provides engineering services. Further, it offers wafer foundry and assembly, and test subcontracting manufacturing services; and timing systems products, application specific integrated circuits, and aerospace products. The company was incorporated in 1989 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.