POET Technologies (NASDAQ:POET) vs. NeoMagic (OTCMKTS:NMGC) Head to Head Analysis

POET Technologies (NASDAQ:POET) and NeoMagic (OTCMKTS:NMGC) are both computer and technology companies, but which is the superior investment? We will contrast the two companies based on the strength of their dividends, institutional ownership, valuation, risk, earnings, analyst recommendations and profitability.

Institutional and Insider Ownership

2.0% of POET Technologies shares are owned by institutional investors. 0.5% of POET Technologies shares are owned by insiders. Comparatively, 12.7% of NeoMagic shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Analyst Ratings

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
POET Technologies	0	0	2	1	3.33
NeoMagic	0	0	0	0	0.00

POET Technologies currently has a consensus price target of $6.25, suggesting a potential downside of 10.20%. Given POET Technologies’ stronger consensus rating and higher probable upside, research analysts clearly believe POET Technologies is more favorable than NeoMagic.

Valuation & Earnings

This table compares POET Technologies and NeoMagic”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
POET Technologies	$119,946.00	4,438.24	-$20.27 million	($0.59)	-11.80
NeoMagic	N/A	N/A	N/A	N/A	N/A

NeoMagic has lower revenue, but higher earnings than POET Technologies.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
POET Technologies	N/A	-194.16%	-132.32%
NeoMagic	N/A	N/A	N/A

Volatility & Risk

POET Technologies has a beta of 0.42, suggesting that its stock price is 58% less volatile than the S&P 500. Comparatively, NeoMagic has a beta of 0.38, suggesting that its stock price is 62% less volatile than the S&P 500.

Summary

POET Technologies beats NeoMagic on 7 of the 10 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 NeoMagic

NeoMagic Corporation designs and delivers semiconductors and software solutions for video, television, imaging, graphic, and audio devices. It offers microcontrollers; horizon digital picture frame and digital mobile TV solutions; and SOC processors, such as application processors and Neomobile TV solutions. The company, through its MercadoMagico.com division, operates an e-Commerce platform that allows user to buy and sell products from one another or buy premium electronic products. It sells its applications processors under the MiMagic brand name. The company was founded in 1993 and is based in Milpitas, California.