Applied Opt (AAOI)vsCiena Corp (CIEN)
AAOI
Applied Opt
$114.41
+0.45%
TECHNOLOGY · Cap: $8.85B
CIEN
Ciena Corp
$437.70
+1.94%
TECHNOLOGY · Cap: $60.74B
Smart Verdict
WallStSmart Research — data-driven comparison
Ciena Corp generates 1024% more annual revenue ($5.12B vs $455.71M). CIEN leads profitability with a 4.5% profit margin vs -8.4%. AAOI appears more attractively valued with a PEG of 0.78. CIEN earns a higher WallStSmart Score of 54/100 (C-).
AAOI
Hold38
out of 100
Grade: F
CIEN
Buy54
out of 100
Grade: C-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Intrinsic value data unavailable for AAOI.
Margin of Safety
-299.5%
Fair Value
$74.41
Current Price
$437.70
$363.29 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Revenue surging 33.9% year-over-year
Growing faster than its price suggests
Revenue surging 33.1% year-over-year
Large-cap with strong market position
Areas to Watch
Trading at 11.7x book value
0.0% earnings growth
ROE of -7.9% — below average capital efficiency
Negative free cash flow — burning cash
Expensive relative to growth rate
2.3% earnings growth
4.5% margin — thin
Premium valuation, high expectations priced in
Comparative Analysis Report
WallStSmart ResearchBull Case : AAOI
The strongest argument for AAOI centers on Revenue Growth, PEG Ratio. Revenue growth of 33.9% demonstrates continued momentum. PEG of 0.78 suggests the stock is reasonably priced for its growth.
Bull Case : CIEN
The strongest argument for CIEN centers on Revenue Growth, Market Cap. Revenue growth of 33.1% demonstrates continued momentum.
Bear Case : AAOI
The primary concerns for AAOI are Price/Book, EPS Growth, Return on Equity.
Bear Case : CIEN
The primary concerns for CIEN are PEG Ratio, EPS Growth, Profit Margin. A P/E of 270.1x leaves little room for execution misses. Thin 4.5% margins leave little buffer for downturns.
Key Dynamics to Monitor
AAOI carries more volatility with a beta of 3.27 — expect wider price swings.
AAOI is growing revenue faster at 33.9% — sustainability is the question.
CIEN generates stronger free cash flow (154M), providing more financial flexibility.
Monitor COMMUNICATION EQUIPMENT industry trends, competitive dynamics, and regulatory changes.
Bottom Line
CIEN scores higher overall (54/100 vs 38/100) and 33.1% revenue growth. Both earn "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.
Ciena Corp
TECHNOLOGY · COMMUNICATION EQUIPMENT · USA
Ciena Corporation provides hardware, software, and network services that support the transport, routing, switching, aggregation, service delivery, and management of video, data, and voice traffic on communications networks worldwide. The company is headquartered in Hanover, Maryland.
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