Analyzing Alpha and Omega Semiconductor (NASDAQ:AOSL) and POET Technologies (NASDAQ:POET)

POET Technologies (NASDAQ:POET) and Alpha and Omega Semiconductor (NASDAQ:AOSL) are both small-cap computer and technology companies, but which is the superior business? We will compare the two businesses based on the strength of their dividends, analyst recommendations, earnings, risk, valuation, profitability and institutional ownership.

Volatility and Risk

POET Technologies has a beta of 0.36, indicating that its stock price is 64% less volatile than the S&P 500. Comparatively, Alpha and Omega Semiconductor has a beta of 1.94, indicating that its stock price is 94% more volatile than the S&P 500.

Earnings and Valuation

This table compares POET Technologies and Alpha and Omega Semiconductor”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
POET Technologies	$1.08 million	746.89	-$56.70 million	($0.72)	-8.49
Alpha and Omega Semiconductor	$696.16 million	0.97	-$96.98 million	($3.47)	-6.54

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

Insider & Institutional Ownership

2.0% of POET Technologies shares are owned by institutional investors. Comparatively, 79.0% of Alpha and Omega Semiconductor shares are owned by institutional investors. 0.5% of POET Technologies shares are owned by insiders. Comparatively, 16.7% of Alpha and Omega Semiconductor shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Analyst Recommendations

This is a summary of current recommendations for POET Technologies and Alpha and Omega Semiconductor, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
POET Technologies	1	0	0	0	1.00
Alpha and Omega Semiconductor	2	2	1	0	1.80

POET Technologies presently has a consensus price target of $8.00, suggesting a potential upside of 30.93%. Alpha and Omega Semiconductor has a consensus price target of $23.67, suggesting a potential upside of 4.21%. Given POET Technologies’ higher possible upside, analysts clearly believe POET Technologies is more favorable than Alpha and Omega Semiconductor.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
POET Technologies	-6,625.16%	-103.46%	-52.64%
Alpha and Omega Semiconductor	-15.06%	-3.78%	-3.03%

Summary

Alpha and Omega Semiconductor beats POET Technologies on 10 of the 14 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 Alpha and Omega Semiconductor

Alpha and Omega Semiconductor Limited designs, develops, and supplies power semiconductor products for computing, consumer electronics, communication, and industrial applications in Hong Kong, China, South Korea, the United States, and internationally. It offers power discrete products, including metal-oxide-semiconductor field-effect transistors (MOSFET), SRFETs, XSFET, electrostatic discharge, protected MOSFETs, high and mid-voltage MOSFETs, and insulated gate bipolar transistors for use in smart phone chargers, battery packs, notebooks, desktop and servers, data centers, base stations, graphics card, game boxes, TVs, AC adapters, power supplies, motor control, power tools, E-vehicles, white goods and industrial motor drives, UPS systems, solar inverters, and industrial welding. The company also provides power ICs that deliver power, as well as control and regulate the power management variables, such as the flow of current and level of voltage. Its power ICs are used in flat panel displays, TVs, notebooks, graphic cards, servers, DVD/Blu-Ray players, set-top boxes, and networking equipment. In addition, the company offers transient voltage suppressors, analog switch, and electromagnetic interference filter for notebooks, desktop PCs, tablets, flat panel displays, TVs, smart phones, and portable electronic devices; and 650V and 1200V SiC MOSFET. Alpha and Omega Semiconductor Limited was incorporated in 2000 and is headquartered in Sunnyvale, California.