Head-To-Head Analysis: Tokyo Electron (OTCMKTS:TOELY) & POET Technologies (NASDAQ:POET)

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

Profitability

This table compares Tokyo Electron and POET Technologies’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Tokyo Electron	21.32%	24.79%	17.58%
POET Technologies	N/A	-194.16%	-132.32%

Analyst Ratings

This is a summary of current ratings and recommmendations for Tokyo Electron and POET Technologies, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Tokyo Electron	0	0	0	1	4.00
POET Technologies	0	0	2	1	3.33

POET Technologies has a consensus price target of $6.25, indicating a potential upside of 39.82%. Given POET Technologies’ higher possible upside, analysts clearly believe POET Technologies is more favorable than Tokyo Electron.

Earnings and Valuation

This table compares Tokyo Electron and POET Technologies”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Tokyo Electron	$12.33 billion	5.80	$2.51 billion	$3.87	20.04
POET Technologies	$41,427.00	8,424.56	-$20.27 million	($0.94)	-4.76

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

Insider and Institutional Ownership

1.3% of Tokyo Electron shares are held by institutional investors. Comparatively, 2.0% of POET Technologies shares are held by institutional investors. 0.5% of POET Technologies shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Risk and Volatility

Tokyo Electron has a beta of 1.71, suggesting that its share price is 71% more volatile than the S&P 500. Comparatively, POET Technologies has a beta of 0.19, suggesting that its share price is 81% less volatile than the S&P 500.

Summary

Tokyo Electron beats POET Technologies on 9 of the 14 factors compared between the two stocks.

About Tokyo Electron

Tokyo Electron Limited, together with its subsidiaries, develops, manufactures, and sells semiconductor and flat panel display (FPD) production equipment in Japan, Europe, North America, Taiwan, China, South Korea, Southeast Asia, and internationally. The company offers coaters/developers, etch systems, surface preparation systems, deposition systems, test systems, wafer bonders/debonders, wafer edge trimming, SiC epitaxial CVD systems, gas cluster ion beam system, and cleaning systems. It also provides plasma etch/ash systems for use in the manufacture of FPDs, as well as inkjet printing systems for manufacturing OLED displays. In addition, the company offers delivery, facility management, and non-life insurance services; sells semiconductor products, board computer products, software, and other electronic components; sells and supports network/storage/middleware related solutions; and develops, manufactures, and sells magnetic annealing systems. Tokyo Electron Limited was incorporated in 1951 and is headquartered in Tokyo, Japan.

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.