Applied Optoelectronics (AAOI) Competitors

Applied Optoelectronics (NASDAQ:AAOI) and Tower Semiconductor (NASDAQ:TSEM) are both computer and technology companies, but which is the superior business? We will compare the two companies based on the strength of their dividends, analyst recommendations, earnings, risk, profitability, media sentiment, valuation and institutional ownership.

Which has higher valuation & earnings, AAOI or TSEM?

Tower Semiconductor has higher revenue and earnings than Applied Optoelectronics. Applied Optoelectronics is trading at a lower price-to-earnings ratio than Tower Semiconductor, indicating that it is currently the more affordable of the two stocks.

Company	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Applied Optoelectronics	$249.37M	6.43	-$186.73M	-$3.86	-7.48
Tower Semiconductor	$1.44B	3.72	$207.86M	$1.81	26.61

Which has more volatility and risk, AAOI or TSEM?

Applied Optoelectronics has a beta of 2.78, suggesting that its stock price is 178% more volatile than the S&P 500. Comparatively, Tower Semiconductor has a beta of 0.79, suggesting that its stock price is 21% less volatile than the S&P 500.

Do institutionals & insiders hold more shares of AAOI or TSEM?

61.7% of Applied Optoelectronics shares are owned by institutional investors. Comparatively, 70.5% of Tower Semiconductor shares are owned by institutional investors. 4.5% of Applied Optoelectronics shares are owned by insiders. Comparatively, 1.0% of Tower Semiconductor shares are owned 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.

Do analysts rate AAOI or TSEM?

Applied Optoelectronics presently has a consensus target price of $24.80, suggesting a potential downside of 14.09%. Tower Semiconductor has a consensus target price of $60.00, suggesting a potential upside of 24.57%. Given Tower Semiconductor's stronger consensus rating and higher probable upside, analysts clearly believe Tower Semiconductor is more favorable than Applied Optoelectronics.

Company	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Applied Optoelectronics	0 Sell rating(s)	3 Hold rating(s)	3 Buy rating(s)	0 Strong Buy rating(s)	2.50
Tower Semiconductor	0 Sell rating(s)	0 Hold rating(s)	4 Buy rating(s)	0 Strong Buy rating(s)	3.00

Does the media prefer AAOI or TSEM?

In the previous week, Applied Optoelectronics had 3 more articles in the media than Tower Semiconductor. MarketBeat recorded 6 mentions for Applied Optoelectronics and 3 mentions for Tower Semiconductor. Tower Semiconductor's average media sentiment score of 1.11 beat Applied Optoelectronics' score of 0.99 indicating that Tower Semiconductor is being referred to more favorably in the news media.

Company	Very Positive	Positive	Neutral	Negative	Very Negative	Overall Sentiment
Applied Optoelectronics	3 Very Positive mention(s)	1 Positive mention(s)	1 Neutral mention(s)	0 Negative mention(s)	0 Very Negative mention(s)	Positive
Tower Semiconductor	1 Very Positive mention(s)	0 Positive mention(s)	1 Neutral mention(s)	0 Negative mention(s)	0 Very Negative mention(s)	Positive

Is AAOI or TSEM more profitable?

Tower Semiconductor has a net margin of 13.86% compared to Applied Optoelectronics' net margin of -55.98%. Tower Semiconductor's return on equity of 7.73% beat Applied Optoelectronics' return on equity.

Company	Net Margins	Return on Equity	Return on Assets
Applied Optoelectronics	-55.98%	-15.40%	-7.40%
Tower Semiconductor	13.86%	7.73%	6.62%

Summary

Tower Semiconductor beats Applied Optoelectronics on 12 of the 16 factors compared between the two stocks.