Oclaro (NASDAQ:OCLR) and POET Technologies (OTCMKTS:POETF) are both small-cap computer and technology companies, but which is the better business? We will compare the two companies based on the strength of their valuation, earnings, institutional ownership, profitability, dividends, risk and analyst recommendations.
This table compares Oclaro and POET Technologies’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Oclaro has a beta of 0.57, meaning that its stock price is 43% less volatile than the S&P 500. Comparatively, POET Technologies has a beta of 1.09, meaning that its stock price is 9% more volatile than the S&P 500.
This is a summary of recent ratings and recommmendations for Oclaro and POET Technologies, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Oclaro presently has a consensus price target of $9.94, indicating a potential upside of 20.31%. POET Technologies has a consensus price target of $2.00, indicating a potential upside of 675.19%. Given POET Technologies’ stronger consensus rating and higher probable upside, analysts clearly believe POET Technologies is more favorable than Oclaro.
Institutional and Insider Ownership
72.9% of Oclaro shares are held by institutional investors. 2.0% of Oclaro shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.
Earnings and Valuation
This table compares Oclaro and POET Technologies’ top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Oclaro||$543.17 million||2.61||$62.45 million||$0.44||18.77|
|POET Technologies||$2.79 million||26.64||-$12.79 million||($0.05)||-5.16|
Oclaro has higher revenue and earnings than POET Technologies. POET Technologies is trading at a lower price-to-earnings ratio than Oclaro, indicating that it is currently the more affordable of the two stocks.
Oclaro beats POET Technologies on 10 of the 14 factors compared between the two stocks.
Oclaro, Inc. designs, manufactures, and markets optical components, modules, and subsystems for the long-haul, metro, and data center markets worldwide. The company's products generate, detect, combine, and separate light signals in optical communications networks. It offers client side transceivers, including pluggable transceivers; line side transceivers; tunable laser transmitters, such as discrete lasers and co-packaged laser modulators; lithium niobate modulators to manipulate the phase or the amplitude of an optical signal; transponder modules for transmitter and receiver functions; and discrete lasers and receivers for metro and long-haul applications. The company markets its products through direct sales force, as well as through sales representatives and resellers. It serves network equipment manufacturers of telecommunications and datacom systems, hyperscale data center operators, and datacom module manufacturers. The company was formerly known as Bookham, Inc. and changed its name to Oclaro, Inc. in April 2009. Oclaro, Inc. was founded in 1988 and is headquartered in San Jose, California.
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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