POET Technologies (NASDAQ:POET – Get Free Report) and United Microelectronics (NYSE:UMC – Get Free Report) are both computer and technology companies, but which is the better investment? We will contrast the two companies based on the strength of their valuation, dividends, institutional ownership, risk, earnings, profitability and analyst recommendations.
Profitability
This table compares POET Technologies and United Microelectronics’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| POET Technologies | N/A | -207.55% | -160.39% |
| United Microelectronics | 24.79% | 15.82% | 9.88% |
Analyst Recommendations
This is a breakdown of current recommendations for POET Technologies and United Microelectronics, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| POET Technologies | 0 | 0 | 1 | 0 | 3.00 |
| United Microelectronics | 0 | 2 | 1 | 0 | 2.33 |
Institutional & Insider Ownership
2.0% of POET Technologies shares are owned by institutional investors. Comparatively, 5.1% of United Microelectronics shares are owned by institutional investors. 0.5% of POET Technologies shares are owned by insiders. Comparatively, 8.0% of United Microelectronics shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.
Valuation & Earnings
This table compares POET Technologies and United Microelectronics’ gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| POET Technologies | $470,000.00 | 256.60 | -$20.27 million | ($0.51) | -4.90 |
| United Microelectronics | $222.53 billion | 0.09 | $1.96 billion | $0.70 | 11.11 |
United Microelectronics has higher revenue and earnings than POET Technologies. POET Technologies is trading at a lower price-to-earnings ratio than United Microelectronics, indicating that it is currently the more affordable of the two stocks.
Volatility and Risk
POET Technologies has a beta of 0.7, meaning that its stock price is 30% less volatile than the S&P 500. Comparatively, United Microelectronics has a beta of 1.21, meaning that its stock price is 21% more volatile than the S&P 500.
Summary
United Microelectronics beats POET Technologies on 10 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 United Microelectronics
United Microelectronics Corporation operates as a semiconductor wafer foundry in Taiwan, Singapore, China, Hong Kong, Japan, the United States, Europe, and internationally. The company provides circuit design, mask tooling, wafer fabrication, and assembly and testing services. It serves fabless design companies and integrated device manufacturers. The company was incorporated in 1980 and is headquartered in Hsinchu City, Taiwan.
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