Applied Optoelectronics (AAOI) Competitors

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

Is LITE or AAOI more profitable?

Lumentum has a net margin of -29.87% compared to Applied Optoelectronics' net margin of -55.98%. Lumentum's return on equity of -8.69% beat Applied Optoelectronics' return on equity.

Company	Net Margins	Return on Equity	Return on Assets
Lumentum	-29.87%	-8.69%	-1.98%
Applied Optoelectronics	-55.98%	-15.40%	-7.40%

Does the media prefer LITE or AAOI?

In the previous week, Lumentum had 3 more articles in the media than Applied Optoelectronics. MarketBeat recorded 10 mentions for Lumentum and 7 mentions for Applied Optoelectronics. Lumentum's average media sentiment score of 1.10 beat Applied Optoelectronics' score of 0.91 indicating that Lumentum is being referred to more favorably in the media.

Company	Very Positive	Positive	Neutral	Negative	Very Negative	Overall Sentiment
Lumentum	6 Very Positive mention(s)	1 Positive mention(s)	2 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

Do analysts recommend LITE or AAOI?

Lumentum presently has a consensus target price of $87.07, suggesting a potential downside of 14.82%. Applied Optoelectronics has a consensus target price of $24.80, suggesting a potential downside of 13.38%. Given Applied Optoelectronics' higher probable upside, analysts plainly believe Applied Optoelectronics is more favorable than Lumentum.

Company	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Lumentum	1 Sell rating(s)	3 Hold rating(s)	11 Buy rating(s)	2 Strong Buy rating(s)	2.82
Applied Optoelectronics	0 Sell rating(s)	3 Hold rating(s)	3 Buy rating(s)	0 Strong Buy rating(s)	2.50

Which has more volatility & risk, LITE or AAOI?

Lumentum has a beta of 1.34, meaning that its stock price is 34% more volatile than the S&P 500. Comparatively, Applied Optoelectronics has a beta of 2.78, meaning that its stock price is 178% more volatile than the S&P 500.

Which has preferable earnings and valuation, LITE or AAOI?

Applied Optoelectronics has lower revenue, but higher earnings than Lumentum. Lumentum 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
Lumentum	$1.36B	5.22	-$546.50M	-$6.45	-15.85
Applied Optoelectronics	$249.37M	6.38	-$186.73M	-$3.86	-7.42

Do institutionals and insiders have more ownership in LITE or AAOI?

94.1% of Lumentum shares are held by institutional investors. Comparatively, 61.7% of Applied Optoelectronics shares are held by institutional investors. 0.2% of Lumentum 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 endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Summary

Lumentum beats Applied Optoelectronics on 10 of the 17 factors compared between the two stocks.