Head-To-Head Analysis: Skyworks Solutions (NASDAQ:SWKS) and POET Technologies (NASDAQ:POET)

Skyworks Solutions (NASDAQ:SWKS) and POET Technologies (NASDAQ:POET) are both computer and technology companies, but which is the superior stock? We will compare the two businesses based on the strength of their analyst recommendations, earnings, dividends, institutional ownership, valuation, risk and profitability.

Risk and Volatility

Skyworks Solutions has a beta of 1.21, meaning that its stock price is 21% more volatile than the S&P 500. Comparatively, POET Technologies has a beta of 0.33, meaning that its stock price is 67% less volatile than the S&P 500.

Insider and Institutional Ownership

85.4% of Skyworks Solutions shares are owned by institutional investors. Comparatively, 2.0% of POET Technologies shares are owned by institutional investors. 0.3% of Skyworks Solutions shares are owned by company insiders. Comparatively, 0.5% of POET Technologies shares are owned by company 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.

Profitability

This table compares Skyworks Solutions and POET Technologies’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Skyworks Solutions	14.27%	13.71%	10.48%
POET Technologies	N/A	-194.16%	-132.32%

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Skyworks Solutions and POET Technologies, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Skyworks Solutions	3	14	5	0	2.09
POET Technologies	0	0	2	1	3.33

Skyworks Solutions currently has a consensus target price of $101.00, indicating a potential upside of 18.65%. POET Technologies has a consensus target price of $4.75, indicating a potential upside of 18.41%. Given Skyworks Solutions’ higher probable upside, equities analysts clearly believe Skyworks Solutions is more favorable than POET Technologies.

Earnings and Valuation

This table compares Skyworks Solutions and POET Technologies”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Skyworks Solutions	$4.18 billion	3.26	$596.00 million	$3.70	23.01
POET Technologies	$470,000.00	603.43	-$20.27 million	($0.59)	-6.80

Skyworks Solutions has higher revenue and earnings than POET Technologies. POET Technologies is trading at a lower price-to-earnings ratio than Skyworks Solutions, indicating that it is currently the more affordable of the two stocks.

Summary

Skyworks Solutions beats POET Technologies on 11 of the 15 factors compared between the two stocks.

About Skyworks Solutions

Skyworks Solutions, Inc., together with its subsidiaries, designs, develops, manufactures, and markets proprietary semiconductor products in the United States, China, South Korea, Taiwan, Europe, the Middle East, Africa, and the rest of Asia-Pacific. Its product portfolio includes amplifiers, antenna tuners, attenuators, automotive tuners and digital radios, DC/DC converters, demodulators, detectors, diodes, wireless analog system on chip products, directional couplers, diversity receive modules, filters, front-end modules, hybrids, light emitting diode drivers, low noise amplifiers, mixers, modulators, optocouplers/optoisolators, phase locked loops, phase shifters, power dividers/combiners, power over ethernet, power isolators, receivers, switches, synthesizers, timing devices, voltage controlled oscillators/synthesizers, and voltage regulators. The company products are the used in aerospace, automotive, broadband, cellular infrastructure, connected home, defense, entertainment and gaming, industrial, medical, military, smartphone, tablet, and wearable markets. It sells its products through direct sales force, electronic component distributors, and independent sales representatives. Skyworks Solutions, Inc. was founded in 1962 and is based in Irvine, 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.