Synaptics (NASDAQ:SYNA) and POET Technologies (NASDAQ:POET) Head-To-Head Analysis

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

Institutional and Insider Ownership

2.0% of POET Technologies shares are owned by institutional investors. Comparatively, 99.4% of Synaptics shares are owned by institutional investors. 0.5% of POET Technologies shares are owned by insiders. Comparatively, 0.5% of Synaptics shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
POET Technologies	-5,786.60%	-27.24%	-20.63%
Synaptics	-4.10%	4.32%	2.33%

Earnings & Valuation

This table compares POET Technologies and Synaptics”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	979.59	-$62.96 million	($0.72)	-9.57
Synaptics	$1.07 billion	4.06	-$47.80 million	($1.24)	-91.13

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

Analyst Ratings

This is a summary of current ratings and price targets for POET Technologies and Synaptics, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
POET Technologies	1	0	0	0	1.00
Synaptics	1	10	3	0	2.14

POET Technologies presently has a consensus target price of $8.00, indicating a potential upside of 16.11%. Synaptics has a consensus target price of $133.45, indicating a potential upside of 18.10%. Given Synaptics’ stronger consensus rating and higher possible upside, analysts plainly believe Synaptics is more favorable than POET Technologies.

Risk and Volatility

POET Technologies has a beta of 0.75, suggesting that its stock price is 25% less volatile than the S&P 500. Comparatively, Synaptics has a beta of 1.97, suggesting that its stock price is 97% more volatile than the S&P 500.

Summary

Synaptics beats POET Technologies on 11 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 Synaptics

Synaptics Incorporated develops, markets, and sells semiconductor products worldwide. The company offers AudioSmart for voice and audio processing; ConnectSmart for high-speed video/audio/data connectivity; DisplayLink for transmitting compressed video frames across low bandwidth connections; VideoSmart that enables set-top boxes, over-the-top, streaming devices, soundbars, surveillance cameras, and smart displays; and ImagingSmart solutions. It also provides Natural ID, a fingerprint ID product that is used in notebook personal computers (PCs), PC peripherals, automobiles, and other applications; TouchPad, a touch-sensitive pad that senses the position and movement of one or more fingers on its surface; SecurePad that integrates fingerprint sensor directly into the TouchPad area; ClickPad that offers a clickable mechanical design; and ForcePad. In addition, the company offers ClearPad, which enables users to interact directly with the display on mobile smartphones, tablets, and automobiles; ClearView products that provide advanced image processing and low power technology for displays on smartphones and tablets; and TouchView products, a touch controller and display driver integration product. Further, it provides TouchPad with a pointing stick in a single notebook computer enabling users to select their interface of choice; TouchStyk, a self-contained pointing stick module; ultra-low power edge artificial intelligence platform for battery powered wireless devices; wireless connectivity solutions comprising Wi-Fi, Bluetooth, global positioning system, global navigation satellite system, and ULE; and voice over IP and digital enhanced cordless telecommunications solutions. The company sells its products through direct sales, outside sales representatives, distributors, and resellers to mobile and PC OEMs; IoT OEMs; and automotive and consumer electronics manufacturers. The company was incorporated in 1986 and is headquartered in San Jose, California.