Analyzing POET Technologies (NASDAQ:POET) & Solar Energy Initiatives (OTCMKTS:SNRY)

Solar Energy Initiatives (OTCMKTS:SNRY) and POET Technologies (NASDAQ:POET) are both small-cap finance companies, but which is the superior investment? We will contrast the two companies based on the strength of their risk, analyst recommendations, valuation, earnings, institutional ownership, profitability and dividends.

Insider and Institutional Ownership

0.1% of Solar Energy Initiatives shares are held by institutional investors. Comparatively, 2.0% of POET Technologies shares are held by institutional investors. 0.5% of POET Technologies shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Analyst Ratings

This is a breakdown of recent ratings and target prices for Solar Energy Initiatives and POET Technologies, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Solar Energy Initiatives	0	0	0	0	N/A
POET Technologies	0	0	1	0	3.00

POET Technologies has a consensus target price of $3.50, suggesting a potential downside of 23.58%. Given POET Technologies’ higher probable upside, analysts clearly believe POET Technologies is more favorable than Solar Energy Initiatives.

Earnings & Valuation

This table compares Solar Energy Initiatives and POET Technologies”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Solar Energy Initiatives	N/A	N/A	N/A	N/A	N/A
POET Technologies	$116,261.00	2,440.58	-$20.27 million	($0.49)	-9.35

Solar Energy Initiatives has higher earnings, but lower revenue than POET Technologies.

Profitability

This table compares Solar Energy Initiatives and POET Technologies’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Solar Energy Initiatives	N/A	N/A	N/A
POET Technologies	N/A	-221.25%	-171.60%

Volatility & Risk

Solar Energy Initiatives has a beta of 1.58, meaning that its stock price is 58% more volatile than the S&P 500. Comparatively, POET Technologies has a beta of 0.28, meaning that its stock price is 72% less volatile than the S&P 500.

Summary

POET Technologies beats Solar Energy Initiatives on 5 of the 8 factors compared between the two stocks.

About Solar Energy Initiatives

Solar Energy Initiatives, Inc., together with its subsidiaries, markets and sells solar power products, systems, and services in the United States and the Caribbean. The company primarily designs, markets, and sells solar power systems for residential and commercial customers; and designs, markets, sells, owns, and operates solar power systems for municipal and commercial customers, as well as designs, develops, and manages solar parks. Its products include photovoltaic panels, photovoltaic roofing systems, solar thermal products, balance of system products, and management system products. The company was formerly known as NP Capital Corp. and changed its name to Solar Energy Initiatives, Inc. in September 2008. Solar Energy Initiatives, Inc. was founded in 2006 and is based in Cary, North Carolina.

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.