GSI Technology (NASDAQ:GSIT – Get Free Report) and POET Technologies (NASDAQ:POET – Get Free Report) are both small-cap technology companies, but which is the superior stock? We will compare the two businesses based on the strength of their profitability, institutional ownership, earnings, risk, dividends, valuation and analyst recommendations.
Profitability
This table compares GSI Technology and POET Technologies’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| GSI Technology | -62.90% | -21.39% | -17.73% |
| POET Technologies | -4,423.13% | -11.65% | -10.12% |
Volatility and Risk
GSI Technology has a beta of 2.11, indicating that its share price is 111% more volatile than the S&P 500. Comparatively, POET Technologies has a beta of 0.83, indicating that its share price is 17% less volatile than the S&P 500.
Institutional & Insider Ownership
33.2% of GSI Technology shares are held by institutional investors. Comparatively, 2.0% of POET Technologies shares are held by institutional investors. 16.6% of GSI Technology shares are held by insiders. Comparatively, 0.5% of POET Technologies shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.
Analyst Recommendations
This is a summary of recent recommendations for GSI Technology and POET Technologies, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| GSI Technology | 1 | 0 | 1 | 0 | 2.00 |
| POET Technologies | 1 | 0 | 0 | 0 | 1.00 |
GSI Technology currently has a consensus price target of $9.00, indicating a potential upside of 118.23%. POET Technologies has a consensus price target of $8.00, indicating a potential upside of 40.97%. Given GSI Technology’s stronger consensus rating and higher probable upside, equities research analysts plainly believe GSI Technology is more favorable than POET Technologies.
Valuation & Earnings
This table compares GSI Technology and POET Technologies”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| GSI Technology | $25.15 million | 6.30 | -$13.25 million | ($0.46) | -8.97 |
| POET Technologies | $1.08 million | 806.85 | -$62.96 million | ($0.58) | -9.78 |
GSI Technology has higher revenue and earnings than POET Technologies. POET Technologies is trading at a lower price-to-earnings ratio than GSI Technology, indicating that it is currently the more affordable of the two stocks.
Summary
GSI Technology beats POET Technologies on 11 of the 14 factors compared between the two stocks.
About GSI Technology
GSI Technology, Inc. designs, develops, and markets semiconductor memory solutions to networking, industrial, medical, aerospace, and military customers in the United States, China, Singapore, Germany, the Netherlands, and internationally. It offers associative processing unit products, which are focuses on applications using similarity search in visual search queries for ecommerce, computer vision, drug discovery, cyber security, and service markets. The company also provides static random access memory (SRAM) products, such as SyncBurst for microprocessor cache and other applications; No Bus Turnaround SRAMs to address the needs of networking and telecom applications; SigmaQuad and SigmaDDR products for density and random transaction rate requirements of networking and telecom applications; Low Latency DRAMs, a solution for advanced data networking applications; Asynchronous, a main memory for small cache-less embedded processors for industrial electronics, measurement systems and cost-sensitive networking equipment, and other applications; and specialty SRAMs. In addition, it offers radiation-hardened and radiation-tolerant SRAMs for military/defense and aerospace applications, such as networking satellites and missiles. The company's products are used as components in its original equipment manufacturer customers' products, including routers, switches, and other networking and telecommunications products; military and aerospace applications, such as radar and guidance systems and satellites; test and measurement applications consisting of high-speed testers; automotive applications comprising smart cruise control; medical applications, including ultrasound and CAT scan equipment; and audio/video processing. It markets its products through a network of independent sales representatives and distributors. GSI Technology, Inc. was incorporated in 1995 and is headquartered in Sunnyvale, California.
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.
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