Applied Optoelectronics (AAOI) Competitors

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

Which has more volatility and risk, AAOI or LITE?

Applied Optoelectronics has a beta of 2.37, suggesting that its share price is 137% more volatile than the S&P 500. Comparatively, Lumentum has a beta of 0.95, suggesting that its share price is 5% less volatile than the S&P 500.

Is AAOI or LITE more profitable?

Applied Optoelectronics has a net margin of -38.61% compared to Lumentum's net margin of -40.70%. Lumentum's return on equity of -6.79% beat Applied Optoelectronics' return on equity.

Company	Net Margins	Return on Equity	Return on Assets
Applied Optoelectronics	-38.61%	-22.36%	-12.08%
Lumentum	-40.70%	-6.79%	-1.75%

Does the media refer more to AAOI or LITE?

In the previous week, Applied Optoelectronics had 15 more articles in the media than Lumentum. MarketBeat recorded 22 mentions for Applied Optoelectronics and 7 mentions for Lumentum. Lumentum's average media sentiment score of 0.79 beat Applied Optoelectronics' score of 0.53 indicating that Lumentum is being referred to more favorably in the news media.

Company	Very Positive	Positive	Neutral	Negative	Very Negative	Overall Sentiment
Applied Optoelectronics	7 Very Positive mention(s)	4 Positive mention(s)	8 Neutral mention(s)	0 Negative mention(s)	0 Very Negative mention(s)	Positive
Lumentum	3 Very Positive mention(s)	0 Positive mention(s)	3 Neutral mention(s)	0 Negative mention(s)	0 Very Negative mention(s)	Positive

Which has higher earnings and valuation, AAOI or LITE?

Applied Optoelectronics has higher earnings, but lower revenue than Lumentum. Applied Optoelectronics is trading at a lower price-to-earnings ratio than Lumentum, 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	$209.55M	8.14	-$56.05M	-$2.06	-18.36
Lumentum	$1.38B	4.24	-$546.50M	-$8.28	-10.28

Does the MarketBeat Community prefer AAOI or LITE?

Lumentum received 293 more outperform votes than Applied Optoelectronics when rated by MarketBeat users. Likewise, 71.64% of users gave Lumentum an outperform vote while only 65.06% of users gave Applied Optoelectronics an outperform vote.

Company	Underperform	Outperform
Applied Optoelectronics	Outperform Votes 609 65.06%	Underperform Votes 327 34.94%
Lumentum	Outperform Votes 902 71.64%	Underperform Votes 357 28.36%

Do institutionals and insiders hold more shares of AAOI or LITE?

61.7% of Applied Optoelectronics shares are held by institutional investors. Comparatively, 94.1% of Lumentum shares are held by institutional investors. 5.4% of Applied Optoelectronics shares are held by insiders. Comparatively, 0.2% of Lumentum shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Do analysts recommend AAOI or LITE?

Applied Optoelectronics presently has a consensus price target of $29.20, indicating a potential downside of 22.79%. Lumentum has a consensus price target of $75.38, indicating a potential downside of 11.40%. Given Lumentum's stronger consensus rating and higher possible upside, analysts clearly believe Lumentum is more favorable than Applied Optoelectronics.

Company	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Applied Optoelectronics	1 Sell rating(s)	1 Hold rating(s)	3 Buy rating(s)	0 Strong Buy rating(s)	2.40
Lumentum	2 Sell rating(s)	3 Hold rating(s)	8 Buy rating(s)	0 Strong Buy rating(s)	2.46

Summary

Lumentum beats Applied Optoelectronics on 11 of the 18 factors compared between the two stocks.