Applied Opt (AAOI)vsApple Inc. (AAPL)
AAOI
Applied Opt
$105.36
+2.00%
TECHNOLOGY · Cap: $9.47B
AAPL
Apple Inc.
$332.27
+1.75%
TECHNOLOGY · Cap: $4.85T
Smart Verdict
WallStSmart Research — data-driven comparison
Apple Inc. generates 78230% more annual revenue ($466.82B vs $595.97M). AAPL leads profitability with a 27.6% profit margin vs -9.6%. AAOI appears more attractively valued with a PEG of 0.78. AAPL earns a higher WallStSmart Score of 67/100 (B-).
AAOI
Hold38
out of 100
Grade: F
AAPL
Strong Buy67
out of 100
Grade: B-
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Revenue surging 86.4% year-over-year
Conservative balance sheet, low leverage
Growing faster than its price suggests
Mega-cap, among the largest globally
Every $100 of equity generates 120 in profit
Strong operational efficiency at 32.6%
Generating 31.9B in free cash flow
Keeps 28 of every $100 in revenue as profit
16.4% revenue growth
Areas to Watch
0.0% earnings growth
ROE of -3.4% — below average capital efficiency
Negative free cash flow — burning cash
Distress zone — elevated risk
Expensive relative to growth rate
Premium valuation, high expectations priced in
Trading at 45.1x book value
Comparative Analysis Report
WallStSmart ResearchBull Case : AAOI
The strongest argument for AAOI centers on Revenue Growth, Debt/Equity, PEG Ratio. Revenue growth of 86.4% demonstrates continued momentum. PEG of 0.78 suggests the stock is reasonably priced for its growth.
Bull Case : AAPL
The strongest argument for AAPL centers on Market Cap, Return on Equity, Operating Margin. Profitability is solid with margins at 27.6% and operating margin at 32.6%. Revenue growth of 16.4% demonstrates continued momentum.
Bear Case : AAOI
The primary concerns for AAOI are EPS Growth, Return on Equity, Free Cash Flow.
Bear Case : AAPL
The primary concerns for AAPL are PEG Ratio, P/E Ratio, Price/Book.
Key Dynamics to Monitor
AAOI profiles as a hypergrowth stock while AAPL is a growth play — different risk/reward profiles.
AAOI carries more volatility with a beta of 3.78 — expect wider price swings.
AAOI is growing revenue faster at 86.4% — sustainability is the question.
AAPL generates stronger free cash flow (31.9B), providing more financial flexibility.
Bottom Line
AAPL scores higher overall (67/100 vs 38/100), backed by strong 27.6% margins and 16.4% revenue growth. Both earn "Strong Buy" and "Hold" ratings respectively — the choice depends on your investment horizon and risk tolerance.
This analysis is generated from publicly available financial data. Not financial advice.
Applied Opt
TECHNOLOGY · COMMUNICATION EQUIPMENT · USA
Applied Optoelectronics, Inc. designs, manufactures, and sells various fiber optic networking products globally. The company is headquartered in Sugar Land, Texas.
Apple Inc.
TECHNOLOGY · CONSUMER ELECTRONICS · USA
Apple Inc. is an American multinational technology company that specializes in consumer electronics, computer software, and online services. Apple is the world's largest technology company by revenue (totalling $274.5 billion in 2020) and, since January 2021, the world's most valuable company. As of 2021, Apple is the world's fourth-largest PC vendor by unit sales, and fourth-largest smartphone manufacturer. It is one of the Big Five American information technology companies, along with Amazon, Google, Microsoft, and Facebook.
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