AXT (NASDAQ:AXTI – Get Free Report) and Quantum-Si (NASDAQ:QSI – Get Free Report) are both small-cap computer and technology companies, but which is the better investment? We will compare the two businesses based on the strength of their risk, valuation, analyst recommendations, institutional ownership, earnings, dividends and profitability.
Risk and Volatility
AXT has a beta of 1.94, suggesting that its stock price is 94% more volatile than the S&P 500. Comparatively, Quantum-Si has a beta of 2.98, suggesting that its stock price is 198% more volatile than the S&P 500.
Insider and Institutional Ownership
49.5% of AXT shares are owned by institutional investors. Comparatively, 39.9% of Quantum-Si shares are owned by institutional investors. 8.8% of AXT shares are owned by insiders. Comparatively, 23.0% of Quantum-Si shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.
Earnings & Valuation
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| AXT | $99.36 million | 12.37 | -$11.62 million | ($0.52) | -42.77 |
| Quantum-Si | $3.06 million | 85.21 | -$101.01 million | ($0.67) | -1.81 |
AXT has higher revenue and earnings than Quantum-Si. AXT is trading at a lower price-to-earnings ratio than Quantum-Si, indicating that it is currently the more affordable of the two stocks.
Analyst Ratings
This is a summary of current ratings and recommmendations for AXT and Quantum-Si, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| AXT | 1 | 1 | 3 | 0 | 2.40 |
| Quantum-Si | 1 | 1 | 2 | 0 | 2.25 |
AXT presently has a consensus price target of $13.75, indicating a potential downside of 38.17%. Quantum-Si has a consensus price target of $3.60, indicating a potential upside of 197.52%. Given Quantum-Si’s higher possible upside, analysts clearly believe Quantum-Si is more favorable than AXT.
Profitability
This table compares AXT and Quantum-Si’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| AXT | -25.22% | -11.19% | -6.83% |
| Quantum-Si | -3,677.97% | -47.90% | -42.56% |
Summary
AXT beats Quantum-Si on 9 of the 14 factors compared between the two stocks.
About AXT
AXT, Inc. designs, develops, manufactures, and distributes compound and single element semiconductor substrates. The company offers indium phosphide for use in data center connectivity using light/lasers, high-speed data transfer in data centers, 5G communications, fiber optic lasers and detectors, consumer devices, passive optical networks, silicon photonics, photonic integrated circuits, thermo-photovoltaics, RF amplifier and switching, infrared light-emitting diode (LEDS) motion control, lidar for robotics and autonomous vehicles, and infrared thermal imaging. It also provides semi-insulating gallium arsenide (GaAs) substrates for use in Wi-Fi and IoT devices, transistors, direct broadcast television, power amplifiers, satellite communications, and solar cells; and semi-conducting GaAs substrates that are used in LEDs, screen displays using micro-LEDs, printer head lasers and LEDs, 3-D sensing using VCSELs, data center communication using VCSELs, sensors for industrial robotics/near-infrared sensors, optical couplers, solar cells, night vision goggles, lidar for robotics and autonomous vehicles, and other lasers, as well as laser machining, cutting, and drilling. In addition, the company offers germanium substrates for use in multi-junction solar cells for satellites, optical sensors and detectors, terrestrial concentrated photo voltaic cells, infrared detectors, and carrier wafer for LED. Further, it provides 6N+ and 7N+ purified gallium, boron trioxide, gallium-magnesium alloy, pyrolytic boron nitride (pBN) crucibles, and pBN insulating parts. It sells its products through direct salesforce in the United States, China, and Europe, as well as through independent sales representatives and distributors in Japan, Taiwan, Korea, and internationally. The company was formerly known as American Xtal Technology, Inc. and changed its name to AXT, Inc. in July 2000. AXT, Inc. was incorporated in 1986 and is headquartered in Fremont, California.
About Quantum-Si
Quantum-Si incorporated, a life sciences company, engages in the development of single-molecule detection platform to enable Next Generation Protein Sequencing (NGPS). The company's platform is comprised of the Platinum NGPS instrument; the Platinum Analysis Software service; and reagent kits and semiconductor chips for use with its instruments. It is used in protein identification, protein variants, antibody characterization, biomarker identification, and post translational modification analysis applications. The company was founded in 2013 is headquartered in Branford, Connecticut.
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