POET Technologies (NASDAQ:POET – Get Rating) and IPG Photonics (NASDAQ:IPGP – Get Rating) are both computer and technology companies, but which is the better business? We will contrast the two businesses based on the strength of their earnings, profitability, risk, valuation, analyst recommendations, institutional ownership and dividends.
Volatility & Risk
POET Technologies has a beta of 1.12, suggesting that its share price is 12% more volatile than the S&P 500. Comparatively, IPG Photonics has a beta of 1.22, suggesting that its share price is 22% more volatile than the S&P 500.
Valuation and Earnings
This table compares POET Technologies and IPG Photonics’ gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| POET Technologies | $550,000.00 | 301.18 | -$21.04 million | ($0.57) | -7.30 |
| IPG Photonics | $1.43 billion | 3.91 | $109.91 million | $1.92 | 61.55 |
Analyst Ratings
This is a summary of current recommendations for POET Technologies and IPG Photonics, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| POET Technologies | 0 | 0 | 2 | 0 | 3.00 |
| IPG Photonics | 0 | 2 | 4 | 0 | 2.67 |
POET Technologies presently has a consensus price target of $6.50, suggesting a potential upside of 56.25%. IPG Photonics has a consensus price target of $136.60, suggesting a potential upside of 15.60%. Given POET Technologies’ stronger consensus rating and higher possible upside, analysts clearly believe POET Technologies is more favorable than IPG Photonics.
Insider & Institutional Ownership
2.1% of POET Technologies shares are owned by institutional investors. Comparatively, 63.5% of IPG Photonics shares are owned by institutional investors. 0.5% of POET Technologies shares are owned by company insiders. Comparatively, 37.1% of IPG Photonics shares are owned by company 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.
Profitability
This table compares POET Technologies and IPG Photonics’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| POET Technologies | N/A | -135.64% | -116.87% |
| IPG Photonics | 7.14% | 4.62% | 4.03% |
Summary
IPG Photonics beats POET Technologies on 11 of the 14 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 IPG Photonics
IPG Photonics Corp. engages in the design, development, production and distribution of fiber lasers, laser systems, fiber amplifiers, and related optical components. Its products include lasers, beam delivery, medical, telecom equipment, product finder and components such as pump diodes, chillers, and mid-IR crystals. The company was founded by Valentin P. Gapontsev and Igor Samartsev in 1990 and is headquartered in Marlborough, MA.
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