Comparing POET Technologies (NASDAQ:POET) and QuickLogic (NASDAQ:QUIK)

POET Technologies (NASDAQ:POET) and QuickLogic (NASDAQ:QUIK) are both small-cap computer and technology companies, but which is the superior stock? We will contrast the two companies based on the strength of their earnings, profitability, analyst recommendations, dividends, institutional ownership, valuation and risk.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
POET Technologies	-5,857.02%	-38.88%	-21.84%
QuickLogic	-107.70%	-47.54%	-25.28%

Valuation & Earnings

This table compares POET Technologies and QuickLogic”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
POET Technologies	$1.08 million	1,340.86	-$62.96 million	($0.56)	-19.59
QuickLogic	$13.77 million	25.60	-$14.82 million	($0.90)	-22.10

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

Volatility & Risk

POET Technologies has a beta of 0.53, suggesting that its stock price is 47% less volatile than the S&P 500. Comparatively, QuickLogic has a beta of 1.11, suggesting that its stock price is 11% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent recommendations for POET Technologies and QuickLogic, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
POET Technologies	1	0	0	0	1.00
QuickLogic	1	1	2	0	2.25

POET Technologies presently has a consensus price target of $8.00, suggesting a potential downside of 27.07%. QuickLogic has a consensus price target of $10.50, suggesting a potential downside of 47.21%. Given POET Technologies’ higher possible upside, equities analysts clearly believe POET Technologies is more favorable than QuickLogic.

Institutional & Insider Ownership

2.0% of POET Technologies shares are owned by institutional investors. Comparatively, 31.5% of QuickLogic shares are owned by institutional investors. 0.5% of POET Technologies shares are owned by company insiders. Comparatively, 3.2% of QuickLogic shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Summary

QuickLogic beats POET Technologies on 8 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 QuickLogic

QuickLogic Corporation operates as a fabless semiconductor company in the United States. The company offers embedded FPGA intellectual property, low power, multicore semiconductor system-on-chips, discrete FPGAs, and AI software; and end-to-end artificial intelligence/machine learning solution with accurate sensor algorithms using AI technology. It provides various platforms, such as software tools and eFPGA IP enables the adoption of AI, voice, and sensor processing across aerospace, and defense, consumer/industrial IOT, and consumer electronics markets. In addition, the company engages in the eFPGA IP Licensing business consisting of development and integration of eFPGA technology into custom semiconductor solutions. Further, the company offers silicon products, such as EOS, QuickAI, ArcticLink III, PolarPro 3, PolarPro II, PolarPro, and Eclipse II products; and PASIC 3 and QuickRAM, as well as programming hardware and design software services. The company markets and sells its products to defense industrial base contractors, U.S. government entities, system OEMs, and fabless semiconductor companies through a network of sales managers and distributors in North America, Europe, and the Asia Pacific. It has a strategic partnership with YorChip to develop low-power unified chiplet interconnect express FPGA chiplets. The company was founded in 1988 and is headquartered in San Jose, California.