POET Technologies (NASDAQ:POET) vs. GCT Semiconductor (NYSE:GCTS) Head-To-Head Survey

POET Technologies (NASDAQ:POET) and GCT Semiconductor (NYSE:GCTS) are both small-cap computer and technology companies, but which is the better investment? We will compare the two companies based on the strength of their risk, institutional ownership, profitability, earnings, valuation, analyst recommendations and dividends.

Profitability

This table compares POET Technologies and GCT Semiconductor’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
POET Technologies	N/A	-194.16%	-132.32%
GCT Semiconductor	N/A	N/A	-27.81%

Valuation and Earnings

This table compares POET Technologies and GCT Semiconductor”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
POET Technologies	$119,946.00	2,862.57	-$20.27 million	($0.59)	-7.46
GCT Semiconductor	$16.03 million	6.06	-$2.00 million	N/A	N/A

GCT Semiconductor has higher revenue and earnings than POET Technologies.

Volatility and Risk

POET Technologies has a beta of 0.38, suggesting that its stock price is 62% less volatile than the S&P 500. Comparatively, GCT Semiconductor has a beta of 1.13, suggesting that its stock price is 13% more volatile than the S&P 500.

Institutional and Insider Ownership

2.0% of POET Technologies shares are owned by institutional investors. Comparatively, 28.1% of GCT Semiconductor shares are owned by institutional investors. 0.5% of POET Technologies shares are owned by insiders. Comparatively, 0.2% of GCT Semiconductor shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Analyst Recommendations

This is a summary of current recommendations and price targets for POET Technologies and GCT Semiconductor, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
POET Technologies	0	0	2	1	3.33
GCT Semiconductor	0	0	1	0	3.00

POET Technologies currently has a consensus price target of $6.25, suggesting a potential upside of 42.05%. GCT Semiconductor has a consensus price target of $5.00, suggesting a potential upside of 145.70%. Given GCT Semiconductor’s higher possible upside, analysts clearly believe GCT Semiconductor is more favorable than POET Technologies.

Summary

GCT Semiconductor beats POET Technologies on 7 of the 12 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 GCT Semiconductor

GCT Semiconductor Holding, Inc., operates as a fabless semiconductor company, designs, develops, and markets integrated circuits for the wireless semiconductor industry. The company provides RF and modem chipsets based on 4G LTE technology, including 4G LTE, 4.5G LTE Advanced, and 4.75G LTE Advanced-Pro. It also develops and sells cellular IoT chipsets for low-speed mobile networks such as eMTC/NB-IOT/Sigfox, and other network protocols; and 5G solutions. Its products and solutions are used in smartphones, tablets, hotspots, CPEs, USB dongles, routers, and M2M applications. The company sells its products directly or indirectly through distributors to original equipment manufacturers and original design manufacturers primarily in Taiwan, China, Korea and Japan, Europe, North America and South America. The company was formerly known as Global Communication Technology, Inc. GCT Semiconductor Holding, Inc. was founded in 1998 and is headquartered in San Jose, California.