POET Technologies (NASDAQ:POET) & Tigo Energy (NASDAQ:TYGO) Critical Analysis

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

Volatility & Risk

Tigo Energy has a beta of 0.77, meaning that its share price is 23% less volatile than the S&P 500. Comparatively, POET Technologies has a beta of 0.39, meaning that its share price is 61% less volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Tigo Energy	-110.29%	-103.85%	-46.23%
POET Technologies	N/A	-194.16%	-132.32%

Insider and Institutional Ownership

15.7% of Tigo Energy shares are held by institutional investors. Comparatively, 2.0% of POET Technologies shares are held by institutional investors. 26.3% of Tigo Energy 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, endowments and large money managers believe a company is poised for long-term growth.

Analyst Recommendations

This is a breakdown of current ratings and target prices for Tigo Energy and POET Technologies, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Tigo Energy	0	1	2	0	2.67
POET Technologies	0	0	2	1	3.33

Tigo Energy presently has a consensus target price of $3.00, suggesting a potential upside of 200.00%. POET Technologies has a consensus target price of $6.25, suggesting a potential upside of 27.81%. Given Tigo Energy’s higher probable upside, equities analysts plainly believe Tigo Energy is more favorable than POET Technologies.

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Tigo Energy	$145.23 million	0.42	-$980,000.00	($0.85)	-1.18
POET Technologies	$470,000.00	797.07	-$20.27 million	($0.59)	-8.29

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

Summary

Tigo Energy beats POET Technologies on 9 of the 14 factors compared between the two stocks.

About Tigo Energy

Tigo Energy, Inc. provides solar and energy storage solutions for the solar industry. It offers module level power electronics (MLPEs) to maximize the energy output of individual solar modules. The company also provides GO Energy Storage Systems that provide solar energy storage management capabilities; and Energy Intelligence (EI) platform, which provides monitoring and energy demand forecasting capabilities. In addition, it offers GO Battery that provides energy resilience in the event of a grid outage and optimizes energy consumption based on rate plans for home energy needs; GO Inverter, which offers energy conversion for home consumption or export to the grid; GO Link/Automatic Transfer Switch (ATS), a component for battery backup of on-grid systems; and GO Electric Vehicle (EV) Charger to reduce transportation costs. The company serves residential, commercial, and utility sectors through distributors and solar installers in North and South America, Europe, the Middle East, Africa, and the Asia-Pacific regions. Tigo Energy, Inc. was founded in 2007 and is headquartered in Campbell, California.

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.