Head to Head Review: Skyworks Solutions (NASDAQ:SWKS) & POET Technologies (NASDAQ:POETF)

POET Technologies (OTCMKTS:POETF) and Skyworks Solutions (NASDAQ:SWKS) are both computer and technology companies, but which is the better investment? We will compare the two businesses based on the strength of their risk, earnings, analyst recommendations, institutional ownership, profitability, valuation and dividends.

Insider & Institutional Ownership

81.0% of Skyworks Solutions shares are held by institutional investors. 0.6% of Skyworks Solutions shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Valuation & Earnings

This table compares POET Technologies and Skyworks Solutions’ top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
POET Technologies $3.89 million 22.22 -$16.32 million ($0.06) -5.00
Skyworks Solutions $3.87 billion 3.66 $918.40 million $6.63 12.35

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

Profitability

This table compares POET Technologies and Skyworks Solutions’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
POET Technologies -419.83% -69.03% -58.77%
Skyworks Solutions 29.06% 28.25% 24.09%

Risk & Volatility

POET Technologies has a beta of 0.95, suggesting that its share price is 5% less volatile than the S&P 500. Comparatively, Skyworks Solutions has a beta of 0.98, suggesting that its share price is 2% less volatile than the S&P 500.

Analyst Ratings

This is a summary of current ratings and target prices for POET Technologies and Skyworks Solutions, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
POET Technologies 0 0 1 0 3.00
Skyworks Solutions 2 15 11 0 2.32

POET Technologies presently has a consensus target price of $1.50, suggesting a potential upside of 400.00%. Skyworks Solutions has a consensus target price of $86.07, suggesting a potential upside of 5.08%. Given POET Technologies’ stronger consensus rating and higher probable upside, equities research analysts plainly believe POET Technologies is more favorable than Skyworks Solutions.

Dividends

Skyworks Solutions pays an annual dividend of $1.52 per share and has a dividend yield of 1.9%. POET Technologies does not pay a dividend. Skyworks Solutions pays out 22.9% of its earnings in the form of a dividend. Skyworks Solutions has raised its dividend for 4 consecutive years.

Summary

Skyworks Solutions beats POET Technologies on 13 of the 17 factors compared between the two stocks.

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.

Skyworks Solutions Company Profile

Skyworks Solutions, Inc., together with its subsidiaries, designs, develops, manufactures, and markets proprietary semiconductor products, including intellectual property worldwide. Its product portfolio includes amplifiers, antenna tuners, attenuators, circulators/isolators, DC/DC converters, demodulators, detectors, diodes, directional couplers, diversity receive modules, filters, front-end modules, hybrids, LED drivers, low noise amplifiers, mixers, modulators, optocouplers/optoisolators, phase locked loops, phase shifters, power dividers/combiners, receivers, switches, synthesizers, technical ceramics, voltage controlled oscillators/synthesizers, and voltage regulators. The company provides its products for use in the aerospace, automotive, broadband, cellular infrastructure, connected home, industrial, medical, military, smartphone, tablet, and wearable markets. It sells its products through direct sales force, electronic component distributors, and independent sales representatives. Skyworks Solutions, Inc. has a collaboration agreement with MediaTek Incorporated to deliver standards-based 5G solution. The company was founded in 1962 and is headquartered in Woburn, Massachusetts.

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