Applied Optoelectronics (NASDAQ:AAOI – Get Free Report) and Valens Semiconductor (NYSE:VLN – Get Free Report) are both small-cap computer and technology companies, but which is the superior business? We will compare the two companies based on the strength of their risk, analyst recommendations, valuation, profitability, earnings, institutional ownership and dividends.
Profitability
This table compares Applied Optoelectronics and Valens Semiconductor’s net margins, return on equity and return on assets.
Net Margins | Return on Equity | Return on Assets | |
Applied Optoelectronics | -55.98% | -15.40% | -7.40% |
Valens Semiconductor | -55.20% | -20.44% | -17.33% |
Risk & Volatility
Applied Optoelectronics has a beta of 2.64, suggesting that its stock price is 164% more volatile than the S&P 500. Comparatively, Valens Semiconductor has a beta of 0.22, suggesting that its stock price is 78% less volatile than the S&P 500.
Institutional & Insider Ownership
Analyst Recommendations
This is a breakdown of recent ratings and recommmendations for Applied Optoelectronics and Valens Semiconductor, as reported by MarketBeat.
Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
Applied Optoelectronics | 0 | 2 | 3 | 0 | 2.60 |
Valens Semiconductor | 0 | 0 | 1 | 1 | 3.50 |
Applied Optoelectronics currently has a consensus price target of $24.00, suggesting a potential upside of 21.40%. Valens Semiconductor has a consensus price target of $4.00, suggesting a potential upside of 76.60%. Given Valens Semiconductor’s stronger consensus rating and higher possible upside, analysts plainly believe Valens Semiconductor is more favorable than Applied Optoelectronics.
Valuation and Earnings
This table compares Applied Optoelectronics and Valens Semiconductor”s revenue, earnings per share (EPS) and valuation.
Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
Applied Optoelectronics | $249.37 million | 4.40 | -$186.73 million | ($3.86) | -5.12 |
Valens Semiconductor | $57.86 million | 4.16 | -$36.58 million | ($0.33) | -6.86 |
Valens Semiconductor has lower revenue, but higher earnings than Applied Optoelectronics. Valens Semiconductor is trading at a lower price-to-earnings ratio than Applied Optoelectronics, indicating that it is currently the more affordable of the two stocks.
Summary
Applied Optoelectronics beats Valens Semiconductor on 8 of the 15 factors compared between the two stocks.
About Applied Optoelectronics
Applied Optoelectronics, Inc. designs, manufactures, and sells fiber-optic networking products in the United States, Taiwan, and China. It offers optical modules, optical filters, lasers, laser components, subassemblies, transmitters and transceivers, turn-key equipment, headend, node, distribution equipment, and amplifiers. The company sells its products to internet data center operators, cable television, telecom equipment manufacturers, fiber-to-the-home, and internet service providers through its direct and indirect sales channels. Applied Optoelectronics, Inc. was incorporated in 1997 and is headquartered in Sugar Land, Texas.
About Valens Semiconductor
Valens Semiconductor Ltd. engages in the provision of semiconductor products for the audio-video and automotive industries. The company offers HDBaseT technology, which enables the simultaneous delivery of ultra-high-definition digital video and audio, Ethernet, USB, control signals, and power through a single long-reach cable. It also provides audio-video solutions for the enterprise, education, industrial, digital signage, industrial, and medical markets. In addition, it offers automotive chipsets that support advanced driver-assistance systems, automotive data solutions, infotainment, telematics, and backbone connectivity. The company’s product series include VS100, VS2000, VS3000, VS6000, VS7000, Valens USB and power extender, Valens VS6320, USB 3.2 Gen1 extension chipset, VA6000, and VA7000. It has a collaboration with iCatch Technology to develop a 360-degree multi-camera videoconferencing solution. The company operates in Israel, China, Hong Kong, the United States, Japan, Germany, Hungary, and internationally. Valens Semiconductor Ltd. is headquartered in Hod Hasharon, Israel.
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