POET Technologies (NASDAQ:POET – Get Free Report) and ASE Technology (NYSE:ASX – Get Free Report) are both computer and technology companies, but which is the better investment? We will contrast the two companies based on the strength of their profitability, earnings, dividends, analyst recommendations, risk, valuation and institutional ownership.
Insider and Institutional Ownership
2.0% of POET Technologies shares are owned by institutional investors. Comparatively, 6.8% of ASE Technology shares are owned by institutional investors. 0.5% of POET Technologies shares are owned by insiders. Comparatively, 22.9% of ASE Technology shares are owned by 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 & Valuation
This table compares POET Technologies and ASE Technology”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| POET Technologies | $1.08 million | 1,699.15 | -$62.96 million | ($0.56) | -24.82 |
| ASE Technology | $20.73 billion | 3.78 | $1.28 billion | $0.68 | 51.89 |
ASE Technology has higher revenue and earnings than POET Technologies. POET Technologies is trading at a lower price-to-earnings ratio than ASE Technology, indicating that it is currently the more affordable of the two stocks.
Risk and Volatility
POET Technologies has a beta of 0.53, indicating that its stock price is 47% less volatile than the S&P 500. Comparatively, ASE Technology has a beta of 1.68, indicating that its stock price is 68% more volatile than the S&P 500.
Analyst Recommendations
This is a breakdown of current ratings for POET Technologies and ASE Technology, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| POET Technologies | 1 | 0 | 0 | 0 | 1.00 |
| ASE Technology | 0 | 1 | 1 | 1 | 3.00 |
POET Technologies currently has a consensus target price of $8.00, indicating a potential downside of 42.45%. Given POET Technologies’ higher probable upside, equities research analysts clearly believe POET Technologies is more favorable than ASE Technology.
Profitability
This table compares POET Technologies and ASE Technology’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% |
| ASE Technology | 7.03% | 13.48% | 5.48% |
Summary
ASE Technology beats POET Technologies on 13 of the 15 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 ASE Technology
ASE Technology Holding Co., Ltd., together with its subsidiaries, provides semiconductors packaging and testing, and electronic manufacturing services in the United States, Taiwan, Asia, Europe, and internationally. It develops, constructs, sells, leases, and manages real estate properties; produces substrates; offers information software, equipment leasing, investment advisory, and warehousing management services; commercial complex, after-sales, and support services; manages parking lot services; processes and sells computer and communication peripherals, electronic components, telecommunications equipment, and motherboards; and imports and exports goods and technology. ASE Technology Holding Co., Ltd. was founded in 1984 and is based in Kaohsiung, Taiwan.
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