Contrasting Advanced Micro Devices (NASDAQ:AMD) and POET Technologies (OTCMKTS:POETF)

POET Technologies (OTCMKTS:POETF) and Advanced Micro Devices (NASDAQ:AMD) are both computer and technology companies, but which is the superior stock? We will contrast the two businesses based on the strength of their valuation, institutional ownership, risk, dividends, earnings, profitability and analyst recommendations.

Earnings and Valuation

This table compares POET Technologies and Advanced Micro Devices’ top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
POET Technologies	$4.43 million	144.17	-$18.17 million	($0.05)	-35.00
Advanced Micro Devices	$22.68 billion	11.86	$854.00 million	$0.68	244.65

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

Analyst Recommendations

This is a summary of recent recommendations for POET Technologies and Advanced Micro Devices, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
POET Technologies	0	0	0	0	N/A
Advanced Micro Devices	0	2	28	0	2.93

Advanced Micro Devices has a consensus price target of $185.26, indicating a potential upside of 11.36%. Given Advanced Micro Devices’ higher possible upside, analysts clearly believe Advanced Micro Devices is more favorable than POET Technologies.

Profitability

This table compares POET Technologies and Advanced Micro Devices’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
POET Technologies	N/A	-88.82%	-74.05%
Advanced Micro Devices	4.89%	5.72%	4.68%

Insider and Institutional Ownership

71.3% of Advanced Micro Devices shares are owned by institutional investors. 0.7% of Advanced Micro Devices shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Risk & Volatility

POET Technologies has a beta of 0.81, suggesting that its stock price is 19% less volatile than the S&P 500. Comparatively, Advanced Micro Devices has a beta of 1.66, suggesting that its stock price is 66% more volatile than the S&P 500.

Summary

Advanced Micro Devices beats POET Technologies on 12 of the 13 factors compared between the two stocks.

About POET Technologies

POET Technologies, Inc. engages in the designing, developing, manufacturing and sale of opto-electronic solutions for the sensing, data communications and telecommunications markets. It developed POET Optical Interposer platform, which allows the integration of electronic and photonic devices into a single multi-chip module. The company was founded on November 14, 1985 and is headquartered in Toronto, Canada.

About Advanced Micro Devices

Advanced Micro Devices, Inc. operates as a semiconductor company worldwide. It operates through Data Center, Client, Gaming, and Embedded segments. The company offers x86 microprocessors and graphics processing units (GPUs) as an accelerated processing unit, chipsets, data center, and professional GPUs; and embedded processors, and semi-custom system-on-chip (SoC) products, microprocessor and SoC development services and technology, data processing unites, field programmable gate arrays (FPGA), and adaptive SoC products. It provides processors under the AMD Ryzen, AMD Ryzen PRO, Ryzen Threadripper, Ryzen Threadripper PRO, AMD Athlon, AMD Athlon PRO, and AMD PRO A-Series brand names; graphics under the AMD Radeon graphics and AMD Embedded Radeon graphics; and professional graphics under the AMD Radeon Pro graphics brand name. In addition, the company offers data center graphics under the Radeon Instinct and Radeon PRO V-series brands, as well as servers under the AMD Instinct accelerators brand; server microprocessors under the AMD EPYC brands; low power solutions under the AMD Athlon, AMD Geode, AMD Ryzen, AMD EPYC, AMD R-Series, and G-Series brands; FPGA products under the Virtex-6, Virtex-7, Virtex UltraScale+, Kintex-7, Kintex UltraScale, Kintex UltraScale+, Artix-7, Artix UltraScale+, Spartan-6, and Spartan-7 brands; adaptive SOCs under the Zynq-7000, Zynq UltraScale+ MPSoC, Zynq UltraScale+ RFSoCs, Versal HBM, Versal Premium, Versal Prime, Versal AI Core, Versal AI Edge, Vitis, and Vivado brands; and compute and network acceleration board products under the Alveo brand. It serves original equipment and design manufacturers, public cloud service providers, system integrators, independent distributors, and add-in-board manufacturers through its direct sales force, and sales representatives. Advanced Micro Devices, Inc. was incorporated in 1969 and is headquartered in Santa Clara, California.