Analyzing TranSwitch (OTCMKTS:TXCCQ) & POET Technologies (NASDAQ:POET)

TranSwitch (OTCMKTS:TXCCQ – Get Free Report) and POET Technologies (NASDAQ:POET – Get Free Report) are both computer and technology companies, but which is the superior stock? We will compare the two businesses based on the strength of their institutional ownership, risk, earnings, dividends, valuation, profitability and analyst recommendations.

Volatility and Risk

TranSwitch has a beta of 22.56, indicating that its share price is 2,156% more volatile than the S&P 500. Comparatively, POET Technologies has a beta of 0.46, indicating that its share price is 54% less volatile than the S&P 500.

Valuation & Earnings

This table compares TranSwitch and POET Technologies”s revenue, earnings per share (EPS) and valuation.

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

Analyst Recommendations

This is a summary of current ratings and recommmendations for TranSwitch and POET Technologies, as provided by MarketBeat.

POET Technologies has a consensus target price of $8.00, suggesting a potential upside of 11.89%. Given POET Technologies’ stronger consensus rating and higher possible upside, analysts clearly believe POET Technologies is more favorable than TranSwitch.

Insider & Institutional Ownership

2.0% of POET Technologies shares are held by institutional investors. 6.3% of TranSwitch shares are held by insiders. Comparatively, 0.5% of POET Technologies shares are held by 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.

Profitability

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

Summary

TranSwitch beats POET Technologies on 5 of the 9 factors compared between the two stocks.

About TranSwitch

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TranSwitch Corporation, together with its subsidiaries, designs, develops, and supplies integrated circuit and intellectual property solutions that provide functionality for voice, data, and video communications equipment for the customer premises and network infrastructure markets. The company provides integrated multi-core network processor system-on-a-chip (SoC) solutions for fixed, 3G and 4G mobile, VoIP, and multimedia applications. It offers converged network infrastructure products, including infrastructure VoIP processors for wire-line and wireless carrier equipment; access VoIP processors; and EoS/EoPDH mappers and framers for carriers to transport data traffic over SONET, SDH, and PDH networks. The company also offers broadband customer premises equipment, such as connectivity solutions comprising HDMI, DisplayPort, MHL, HDP, Ethernet IP cores, and MHDP transceivers for consumer electronics, home network equipment, and industrial and automotive applications; and multi-service SoCs for customer premises equipment that support telephone voice, fax, and routing functionality over broadband access networks. TranSwitch Corporation sells its products to public network system original equipment manufacturers (OEMs), WAN and LAN equipment OEMs, Internet-oriented OEMs, and communications test and performance measurement equipment OEMs; and government, universities, and private laboratories. The company offers its products directly in North America, Taiwan, China, Japan, Korea, and Europe, as well as through a network of distributors in North America, Asia, and Europe. TranSwitch Corporation was founded in 1988 and is headquartered in Shelton, Connecticut. On November 21, 2013, TranSwitch Corporation filed a voluntary petition for liquidation under Chapter 7 in the U.S. Bankruptcy Court for the District of Connecticut.

About POET Technologies

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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.