POET Technologies (OTCMKTS:POETF) and On Track Innovations (NASDAQ:OTIV) are both small-cap computer and technology companies, but which is the better investment? We will contrast the two companies based on the strength of their earnings, profitability, dividends, analyst recommendations, valuation, risk and institutional ownership.

Analyst Ratings

This is a breakdown of current recommendations and price targets for POET Technologies and On Track Innovations, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
POET Technologies 0 0 1 0 3.00
On Track Innovations 0 1 0 0 2.00

POET Technologies currently has a consensus target price of $1.50, indicating a potential upside of 446.45%. Given POET Technologies’ stronger consensus rating and higher possible upside, analysts plainly believe POET Technologies is more favorable than On Track Innovations.

Risk and Volatility

POET Technologies has a beta of 0.83, suggesting that its share price is 17% less volatile than the S&P 500. Comparatively, On Track Innovations has a beta of 1.4, suggesting that its share price is 40% more volatile than the S&P 500.

Valuation and Earnings

This table compares POET Technologies and On Track Innovations’ gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
POET Technologies $3.89 million 20.33 -$16.32 million ($0.06) -4.58
On Track Innovations $21.88 million 0.88 -$260,000.00 ($0.05) -9.35

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

Profitability

This table compares POET Technologies and On Track Innovations’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
POET Technologies -419.83% -69.03% -58.77%
On Track Innovations -8.31% -24.36% -12.27%

Institutional & Insider Ownership

3.8% of On Track Innovations shares are owned by institutional investors. 1.6% of On Track Innovations shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Summary

On Track Innovations beats POET Technologies on 9 of the 14 factors compared between the two stocks.

POET Technologies Company Profile

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.

On Track Innovations Company Profile

On Track Innovations Ltd. designs, develops, and markets cashless payment solutions worldwide. It operates in two segments, Retail and Mass Transit Ticketing; and Petroleum. The company offers OTI UNO, a single interface and contactless reader that support the major card associations' applications, as well as wallets, such as Apple Pay, Google Pay, and Samsung Pay; OTI TRIO, a near-field communication and contactless reader, which offers three-in-one cashless payment card options comprising magnetic stripe (swipe), contact (chip), and contactless (tap); and OTI Interno, an original equipment manufacturer reader module with integrated antenna used for integration into mass transit validators and terminals. It also provides OTI TeleBox which enables communication between machines primarily for vending machines, kiosks, and meters; OTI GoBox, a machine-to-machine cashless payment and telemetry gateway primarily used to stream Full-HD media and run either Linux or Android; otiMetry, a telemetry solution for smart vending which also enables cashless payments; otiKiosk, a cashless payment acceptance and remote management solution for kiosks and self-service environments; and otiPulse, a cashless payment solution for pulse operated machines. In addition, the company offers ticket vending machines, which are encoding and loading electronic card tickets for the public transport and for selling paper tickets, as well as resells tickets through point of sale terminals. Further, it provides EasyFuel Plus, a fuel management and payment solution used to control and manage refueling operations; and MediSmart, an information management and claims submission system for the medical sector. The company was formerly known as De-Bug Innovations Ltd. and changed its name to On Track Innovations Ltd. in July 1991. On Track Innovations Ltd. was founded in 1990 and is headquartered in Rosh Pina, Israel.

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