Contrasting POET Technologies (OTCMKTS:POETF) & SunPower (OTCMKTS:SPWR)

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

Analyst Ratings

This is a summary of recent ratings and recommmendations for POET Technologies and SunPower, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
POET Technologies 0 0 1 0 3.00
SunPower 4 3 2 0 1.78

POET Technologies presently has a consensus price target of $2.00, indicating a potential upside of 619.42%. SunPower has a consensus price target of $8.62, indicating a potential upside of 3.11%. Given POET Technologies’ stronger consensus rating and higher possible upside, analysts plainly believe POET Technologies is more favorable than SunPower.

Profitability

This table compares POET Technologies and SunPower’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
POET Technologies N/A -61.91% -43.73%
SunPower -8.24% N/A -6.25%

Risk & Volatility

POET Technologies has a beta of 0.99, meaning that its share price is 1% less volatile than the S&P 500. Comparatively, SunPower has a beta of 2.19, meaning that its share price is 119% more volatile than the S&P 500.

Insider and Institutional Ownership

33.3% of SunPower shares are owned by institutional investors. 1.0% of SunPower shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Earnings and Valuation

This table compares POET Technologies and SunPower’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
POET Technologies $3.89 million 20.60 -$16.32 million ($0.06) -4.63
SunPower $1.73 billion 0.69 -$811.09 million ($0.88) -9.50

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

About POET Technologies

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.

About SunPower

SunPower Corporation researches, develops, manufactures, and delivers solar solutions worldwide. It operates through three segments: Residential, Commercial, and Power Plant. The company provides solar power components, including panels and system components, primarily to dealers, system integrators, and distributors. It also offers commercial rooftop and ground-mounted solar power systems, and residential mounting systems. In addition, the company provides post-installation operations and maintenance services. Further, it leases solar power systems to residential customers; and sells inverters manufactured by third parties. The company also serves investors, financial institutions, project developers, electric utilities, independent power producers, commercial and governmental entities, production home builders, residential owners, and small commercial building owners. The company was incorporated in 1985 and is headquartered in San Jose, California. SunPower Corporation is a subsidiary of Total Solar International SAS.

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