NVE (NASDAQ:NVEC) and POET Technologies (OTCMKTS:POETF) are both small-cap computer and technology companies, but which is the superior investment? We will contrast the two companies based on the strength of their dividends, analyst recommendations, earnings, institutional ownership, valuation, profitability and risk.
Risk & Volatility
NVE has a beta of 1.38, suggesting that its stock price is 38% more volatile than the S&P 500. Comparatively, POET Technologies has a beta of 1.09, suggesting that its stock price is 9% more volatile than the S&P 500.
Insider & Institutional Ownership
70.9% of NVE shares are held by institutional investors. 2.3% of NVE shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.
Earnings & Valuation
This table compares NVE and POET Technologies’ top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|NVE||$25.41 million||10.81||$14.53 million||N/A||N/A|
|POET Technologies||$4.43 million||24.78||-$5.95 million||($0.04)||-9.52|
NVE has higher revenue and earnings than POET Technologies.
This table compares NVE and POET Technologies’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
This is a breakdown of current recommendations for NVE and POET Technologies, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
POET Technologies has a consensus price target of $1.50, suggesting a potential upside of 294.01%. Given POET Technologies’ higher possible upside, analysts clearly believe POET Technologies is more favorable than NVE.
NVE beats POET Technologies on 9 of the 12 factors compared between the two stocks.
NVE Corporation develops and sells devices that use spintronics, a nanotechnology that utilizes electron spin to acquire, store, and transmit information. The company manufactures spintronic products, including sensors and couplers for use in acquiring and transmitting data. Its products comprise standard sensors to detect the presence of a magnetic or metallic material to determine position or speed primarily for the factory automation market; and custom and medical sensors for medical devices to replace electromechanical magnetic switches. The company also offers spintronic couplers, such as IL500-series couplers, IL600-series passive-input couplers, IL700/IL200-series high-speed couplers, IL4/IL3-series isolated network couplers, and IL800-series top-of-the-line couplers. In addition, it licenses the spintronic magnetoresistive random access memory technology, as well as conducts contract research and development activities. The company sells its products through distributors in the United States, Europe, the Middle East, Africa, Asia-Pacific, and internationally. NVE Corporation was founded in 1989 and is headquartered in Eden Prairie, Minnesota.
About POET Technologies
POET Technologies Inc. designs, manufactures, and sells semi-conductor products in the United States, Canada, and Singapore. It offers optical light source products and photonic integrated devices for the sensing, data and tele communications, medical, instrumentation, industrial, defense, and security markets. The company was formerly known as Opel Technologies Inc. and changed its name to POET Technologies Inc. in June 2013. POET Technologies Inc. is headquartered in Toronto, Canada.
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