Applied Optoelectronics (AAOI) Competitors

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

Do analysts prefer SITM or AAOI?

SiTime currently has a consensus price target of $240.00, suggesting a potential downside of 1.22%. Applied Optoelectronics has a consensus price target of $27.20, suggesting a potential upside of 6.71%. Given Applied Optoelectronics' higher possible upside, analysts plainly believe Applied Optoelectronics is more favorable than SiTime.

Company	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
SiTime	1 Sell rating(s)	0 Hold rating(s)	5 Buy rating(s)	0 Strong Buy rating(s)	2.67
Applied Optoelectronics	0 Sell rating(s)	2 Hold rating(s)	4 Buy rating(s)	0 Strong Buy rating(s)	2.67

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

84.3% of SiTime shares are held by institutional investors. Comparatively, 61.7% of Applied Optoelectronics shares are held by institutional investors. 2.1% of SiTime shares are held by company insiders. Comparatively, 4.5% of Applied Optoelectronics shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Does the media refer more to SITM or AAOI?

In the previous week, SiTime had 2 more articles in the media than Applied Optoelectronics. MarketBeat recorded 9 mentions for SiTime and 7 mentions for Applied Optoelectronics. SiTime's average media sentiment score of 1.39 beat Applied Optoelectronics' score of 0.94 indicating that SiTime is being referred to more favorably in the media.

Company	Very Positive	Positive	Neutral	Negative	Very Negative	Overall Sentiment
SiTime	5 Very Positive mention(s)	2 Positive mention(s)	1 Neutral mention(s)	0 Negative mention(s)	0 Very Negative mention(s)	Positive
Applied Optoelectronics	3 Very Positive mention(s)	1 Positive mention(s)	2 Neutral mention(s)	0 Negative mention(s)	0 Very Negative mention(s)	Positive

Is SITM or AAOI more profitable?

SiTime has a net margin of -32.15% compared to Applied Optoelectronics' net margin of -42.29%. SiTime's return on equity of -7.54% beat Applied Optoelectronics' return on equity.

Company	Net Margins	Return on Equity	Return on Assets
SiTime	-32.15%	-7.54%	-6.16%
Applied Optoelectronics	-42.29%	-10.60%	-5.19%

Which has higher earnings and valuation, SITM or AAOI?

SiTime has higher earnings, but lower revenue than Applied Optoelectronics. SiTime is trading at a lower price-to-earnings ratio than Applied Optoelectronics, 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
SiTime	$202.70M	31.17	-$93.60M	-$3.48	-69.82
Applied Optoelectronics	$249.37M	6.37	-$186.73M	-$3.36	-7.59

Which has more risk & volatility, SITM or AAOI?

SiTime has a beta of 2.2, indicating that its stock price is 120% more 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.

Summary

SiTime beats Applied Optoelectronics on 8 of the 15 factors compared between the two stocks.