Head-To-Head Contrast: POET Technologies (OTCMKTS:POETF) & Cohu (NASDAQ:COHU)

Cohu (NASDAQ:COHU) and POET Technologies (OTCMKTS:POETF) are both mid-cap technology companies, but which is the better stock? We will contrast the two companies based on the strength of their analyst recommendations, earnings, institutional ownership, dividends, risk, profitability and valuation.

Institutional & Insider Ownership

94.7% of Cohu shares are held by institutional investors. 3.0% of Cohu shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Cohu	-7.43%	-1.96%	-1.30%
POET Technologies	N/A	-88.82%	-74.05%

Risk and Volatility

Cohu has a beta of 1.59, suggesting that its share price is 59% more volatile than the S&P 500. Comparatively, POET Technologies has a beta of 0.81, suggesting that its share price is 19% less volatile than the S&P 500.

Earnings & Valuation

This table compares Cohu and POET Technologies”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Cohu	$452.96 million	5.43	-$74.27 million	($0.83)	-62.54
POET Technologies	$4.43 million	705.22	-$18.17 million	($0.05)	-171.20

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

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for Cohu and POET Technologies, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Cohu	1	0	7	2	3.00
POET Technologies	0	0	0	0	0.00

Cohu currently has a consensus price target of $68.75, suggesting a potential upside of 32.44%. Given Cohu’s stronger consensus rating and higher possible upside, research analysts plainly believe Cohu is more favorable than POET Technologies.

Summary

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

About Cohu

Cohu, Inc., through its subsidiaries, provides semiconductor test equipment and services in China, the United States, Taiwan, Malaysia, the Philippines, and internationally. The company supplies semiconductor test and inspection handlers, micro-electromechanical system (MEMS) test modules, test contactors, thermal sub-systems, and semiconductor automated test equipment for semiconductor manufacturers and test subcontractors. It also provides semiconductor automated test equipment for wafer level and device package testing; various test handlers, including pick-and-place, turret, gravity, strip, and MEMS and thermal sub-systems; interface products comprising test contactors, and probe heads and pins; spares and kits; various parts and labor warranties on test and handling systems, and instruments; and training on the maintenance and operation of its systems, as well as application, data management software, and consulting services on its products. In addition, the company offers data analytics product that includes DI-Core, a software suite used to optimize Cohu equipment performance, which provides real-time online performance monitoring and process control. It markets its products through direct sales force and independent sales representatives. The company was formerly known as Cohu Electronics, Inc. and changed its name to Cohu, Inc. in 1972. The company was incorporated in 1947 and is headquartered in Poway, California.

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.