Semtech (NASDAQ:SMTC – Get Free Report) and POET Technologies (NASDAQ:POET – Get Free Report) are both technology companies, but which is the superior business? We will compare the two companies based on the strength of their valuation, earnings, dividends, institutional ownership, profitability, analyst recommendations and risk.
Analyst Recommendations
This is a summary of recent ratings and recommmendations for Semtech and POET Technologies, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Semtech | 1 | 3 | 15 | 0 | 2.74 |
| POET Technologies | 1 | 0 | 0 | 0 | 1.00 |
Semtech presently has a consensus price target of $204.71, indicating a potential upside of 56.06%. POET Technologies has a consensus price target of $8.00, indicating a potential upside of 6.67%. Given Semtech’s stronger consensus rating and higher possible upside, analysts plainly believe Semtech is more favorable than POET Technologies.
Insider & Institutional Ownership
Profitability
This table compares Semtech and POET Technologies’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Semtech | 13.11% | 21.74% | 8.98% |
| POET Technologies | -4,423.13% | -11.65% | -10.12% |
Earnings and Valuation
This table compares Semtech and POET Technologies”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Semtech | $1.05 billion | 11.66 | -$40.38 million | $1.51 | 86.87 |
| POET Technologies | $1.08 million | 1,066.32 | -$62.96 million | ($0.58) | -12.93 |
Semtech has higher revenue and earnings than POET Technologies. POET Technologies is trading at a lower price-to-earnings ratio than Semtech, indicating that it is currently the more affordable of the two stocks.
Volatility & Risk
Semtech has a beta of 2.35, suggesting that its stock price is 135% more volatile than the S&P 500. Comparatively, POET Technologies has a beta of 0.81, suggesting that its stock price is 19% less volatile than the S&P 500.
Summary
Semtech beats POET Technologies on 11 of the 14 factors compared between the two stocks.
About Semtech
Semtech Corporation designs, develops, manufactures, and markets analog and mixed-signal semiconductor and advanced algorithms. It provides signal integrity products, including a portfolio of optical data communications and video transport products used in various infrastructure, and industrial applications; a portfolio of integrated circuits for data centers, enterprise networks, passive optical networks, wireless base station optical transceivers, and high-speed interface applications; and video products for broadcast applications, as well as video-over-IP technology for professional audio video applications. The company offers protection products, such as filter and termination devices that are integrated with the transient voltage suppressor devices, which protect electronic systems from voltage spikes; and sensing products comprising a portfolio of specialized radio frequency products used in various industrial, medical, and communications applications, as well as specialized sensing products. In addition, it provides switching voltage regulators, combination switching and linear regulators, smart regulators, isolated switches, and wireless charging related products. Further, it offers portfolio of IoT solutions, such as modules, gateways, routers, and connected services; and portfolio of connected services, including wireless connectivity and cloud-based services for industrial, medical and communications applications. The company serves original equipment manufacturers and industrial end-markets. It sells its products directly, as well as through independent sales representative firms and independent distributors in Asia- Pacific, North America, and Europe. Semtech Corporation was incorporated in 1960 and is headquartered in Camarillo, California.
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.
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