Applied Optoelectronics (AAOI) & Its Competitors Financial Contrast

Applied Optoelectronics (NASDAQ:AAOI) is one of 110 publicly-traded companies in the “Communications Equipment” industry, but how does it weigh in compared to its competitors? We will compare Applied Optoelectronics to similar businesses based on the strength of its analyst recommendations, institutional ownership, valuation, dividends, earnings, profitability and risk.

Volatility and Risk

Applied Optoelectronics has a beta of 3.85, suggesting that its share price is 285% more volatile than the S&P 500. Comparatively, Applied Optoelectronics’ competitors have a beta of 1.17, suggesting that their average share price is 17% more volatile than the S&P 500.

Valuation and Earnings

This table compares Applied Optoelectronics and its competitors revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Applied Optoelectronics	$455.71 million	-$38.23 million	-88.53
Applied Optoelectronics Competitors	$2.71 billion	$292.12 million	-2.42

Applied Optoelectronics’ competitors have higher revenue and earnings than Applied Optoelectronics. Applied Optoelectronics is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.

Analyst Recommendations

This is a summary of current ratings and target prices for Applied Optoelectronics and its competitors, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Applied Optoelectronics	1	2	3	0	2.33
Applied Optoelectronics Competitors	1070	4013	7062	376	2.54

Applied Optoelectronics currently has a consensus target price of $143.00, suggesting a potential upside of 107.10%. As a group, “Communications Equipment” companies have a potential upside of 36.93%. Given Applied Optoelectronics’ higher probable upside, equities analysts plainly believe Applied Optoelectronics is more favorable than its competitors.

Institutional and Insider Ownership

61.7% of Applied Optoelectronics shares are held by institutional investors. Comparatively, 44.4% of shares of all “Communications Equipment” companies are held by institutional investors. 3.8% of Applied Optoelectronics shares are held by company insiders. Comparatively, 18.4% of shares of all “Communications Equipment” companies are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Profitability

This table compares Applied Optoelectronics and its competitors’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Applied Optoelectronics	-9.57%	-1.98%	-1.34%
Applied Optoelectronics Competitors	0.16%	-5.14%	2.95%

Summary

Applied Optoelectronics competitors beat Applied Optoelectronics on 9 of the 13 factors compared.

Applied Optoelectronics Company Profile

Applied Optoelectronics, Inc. designs, manufactures, and sells fiber-optic networking products in the United States, Taiwan, and China. It offers optical modules, optical filters, lasers, laser components, subassemblies, transmitters and transceivers, turn-key equipment, headend, node, distribution equipment, and amplifiers. The company sells its products to internet data center operators, cable television, telecom equipment manufacturers, fiber-to-the-home, and internet service providers through its direct and indirect sales channels. Applied Optoelectronics, Inc. was incorporated in 1997 and is headquartered in Sugar Land, Texas.