Applied Optoelectronics (AAOI) Competitors

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

Do analysts prefer TSEM or AAOI?

Tower Semiconductor currently has a consensus price target of $64.25, suggesting a potential upside of 31.55%. Applied Optoelectronics has a consensus price target of $29.40, suggesting a potential upside of 31.66%. Given Applied Optoelectronics' higher probable upside, analysts clearly believe Applied Optoelectronics is more favorable than Tower Semiconductor.

Company	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Tower Semiconductor	0 Sell rating(s)	0 Hold rating(s)	4 Buy rating(s)	0 Strong Buy rating(s)	3.00
Applied Optoelectronics	0 Sell rating(s)	2 Hold rating(s)	4 Buy rating(s)	0 Strong Buy rating(s)	2.67

Which has higher valuation and earnings, TSEM or AAOI?

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
Tower Semiconductor	$1.44B	3.77	$207.86M	$1.74	28.07
Applied Optoelectronics	$308.55M	4.02	-$186.73M	-$3.86	-5.78

Does the media refer more to TSEM or AAOI?

In the previous week, Tower Semiconductor had 15 more articles in the media than Applied Optoelectronics. MarketBeat recorded 24 mentions for Tower Semiconductor and 9 mentions for Applied Optoelectronics. Applied Optoelectronics' average media sentiment score of 0.57 beat Tower Semiconductor's score of 0.34 indicating that Applied Optoelectronics is being referred to more favorably in the news media.

Company	Very Positive	Positive	Neutral	Negative	Very Negative	Overall Sentiment
Tower Semiconductor	4 Very Positive mention(s)	2 Positive mention(s)	13 Neutral mention(s)	1 Negative mention(s)	0 Very Negative mention(s)	Neutral
Applied Optoelectronics	3 Very Positive mention(s)	0 Positive mention(s)	4 Neutral mention(s)	0 Negative mention(s)	0 Very Negative mention(s)	Positive

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

70.5% of Tower Semiconductor shares are owned by institutional investors. Comparatively, 61.7% of Applied Optoelectronics shares are owned by institutional investors. 1.0% of Tower Semiconductor shares are owned by company insiders. Comparatively, 4.5% of Applied Optoelectronics shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Which has more risk and volatility, TSEM or AAOI?

Tower Semiconductor has a beta of 0.77, indicating that its stock price is 23% less volatile than the S&P 500. Comparatively, Applied Optoelectronics has a beta of 2.72, indicating that its stock price is 172% more volatile than the S&P 500.

Is TSEM or AAOI more profitable?

Tower Semiconductor has a net margin of 13.20% compared to Applied Optoelectronics' net margin of -55.98%. Tower Semiconductor's return on equity of 7.37% beat Applied Optoelectronics' return on equity.

Company	Net Margins	Return on Equity	Return on Assets
Tower Semiconductor	13.20%	7.37%	6.34%
Applied Optoelectronics	-55.98%	-15.40%	-7.40%

Summary

Tower Semiconductor beats Applied Optoelectronics on 10 of the 15 factors compared between the two stocks.