Applied Optoelectronics (AAOI) Competitors

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

Do analysts prefer AAOI or SITM?

Applied Optoelectronics currently has a consensus target price of $24.80, suggesting a potential downside of 11.17%. SiTime has a consensus target price of $224.00, suggesting a potential upside of 6.38%. Given SiTime's stronger consensus rating and higher possible upside, analysts clearly believe SiTime 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
SiTime	1 Sell rating(s)	0 Hold rating(s)	4 Buy rating(s)	0 Strong Buy rating(s)	2.60

Which has more risk and volatility, AAOI or SITM?

Applied Optoelectronics has a beta of 2.78, suggesting that its share price is 178% more volatile than the S&P 500. Comparatively, SiTime has a beta of 2.2, suggesting that its share price is 120% more volatile than the S&P 500.

Do insiders & institutionals have more ownership in AAOI or SITM?

61.7% of Applied Optoelectronics shares are owned by institutional investors. Comparatively, 84.3% of SiTime shares are owned by institutional investors. 4.5% of Applied Optoelectronics shares are owned by insiders. Comparatively, 2.1% of SiTime shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Does the media refer more to AAOI or SITM?

In the previous week, Applied Optoelectronics had 3 more articles in the media than SiTime. MarketBeat recorded 8 mentions for Applied Optoelectronics and 5 mentions for SiTime. SiTime's average media sentiment score of 1.75 beat Applied Optoelectronics' score of 0.58 indicating that SiTime is being referred to more favorably in the news media.

Company	Very Positive	Positive	Neutral	Negative	Very Negative	Overall Sentiment
Applied Optoelectronics	2 Very Positive mention(s)	1 Positive mention(s)	4 Neutral mention(s)	0 Negative mention(s)	0 Very Negative mention(s)	Positive
SiTime	4 Very Positive mention(s)	0 Positive mention(s)	1 Neutral mention(s)	0 Negative mention(s)	0 Very Negative mention(s)	Very Positive

Is AAOI or SITM more profitable?

SiTime has a net margin of -38.60% compared to Applied Optoelectronics' net margin of -55.98%. SiTime's return on equity of -9.43% beat Applied Optoelectronics' return on equity.

Company	Net Margins	Return on Equity	Return on Assets
Applied Optoelectronics	-55.98%	-15.40%	-7.40%
SiTime	-38.60%	-9.43%	-7.46%

Which has stronger valuation and earnings, AAOI or SITM?

SiTime has lower revenue, but higher earnings 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
Applied Optoelectronics	$249.37M	6.22	-$186.73M	-$3.86	-7.23
SiTime	$229.99M	21.72	-$93.60M	-$3.80	-55.41

Summary

SiTime beats Applied Optoelectronics on 10 of the 16 factors compared between the two stocks.