Contrasting POET Technologies (NASDAQ:POET) and Semiconductor Manufacturing International (OTCMKTS:SMICY)

POET Technologies (NASDAQ:POET) and Semiconductor Manufacturing International (OTCMKTS:SMICY) are both computer and technology companies, but which is the superior business? We will compare the two companies based on the strength of their dividends, risk, analyst recommendations, earnings, valuation, profitability and institutional ownership.

Analyst Ratings

This is a breakdown of current ratings and price targets for POET Technologies and Semiconductor Manufacturing International, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
POET Technologies	0	0	1	0	3.00
Semiconductor Manufacturing International	0	0	0	0	N/A

POET Technologies currently has a consensus target price of $3.50, indicating a potential downside of 10.03%. Given POET Technologies’ higher probable upside, research analysts plainly believe POET Technologies is more favorable than Semiconductor Manufacturing International.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
POET Technologies	N/A	-221.25%	-171.60%
Semiconductor Manufacturing International	14.53%	4.00%	2.62%

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
POET Technologies	$116,261.00	2,363.19	-$20.27 million	($0.52)	-7.48
Semiconductor Manufacturing International	$3.12 billion	5.18	$234.68 million	$0.21	66.67

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

Volatility and Risk

POET Technologies has a beta of 0.3, suggesting that its share price is 70% less volatile than the S&P 500. Comparatively, Semiconductor Manufacturing International has a beta of 0.7, suggesting that its share price is 30% less volatile than the S&P 500.

Insider & Institutional Ownership

2.0% of POET Technologies shares are owned by institutional investors. Comparatively, 0.0% of Semiconductor Manufacturing International shares are owned by institutional investors. 0.5% of POET Technologies shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Summary

Semiconductor Manufacturing International beats POET Technologies on 8 of the 13 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 Semiconductor Manufacturing International

Semiconductor Manufacturing International Corporation, an investment holding company, engages in the computer-aided design, manufacture, testing, packaging, and trading of integrated circuits (IC) and other semiconductor services. It is also involved in wafer manufacturing, wafer probing and bumping, technology development, design service, mask manufacturing, and assembly and final testing of integrated circuits; and sale of self-manufactured products. In addition, the company designs and manufactures semiconductor masks; and offers marketing related services. It operates in North America, China, Hong Kong, and Eurasia. The company serves integrated device manufacturers, fabless semiconductor companies, and system companies. Semiconductor Manufacturing International Corporation was founded in 2000 and is headquartered in Shanghai, the People's Republic of China.