Applied Opt (AAOI)vsHewlett Packard Enterprise Co (HPE)
AAOI
Applied Opt
$105.36
+2.00%
TECHNOLOGY · Cap: $9.47B
HPE
Hewlett Packard Enterprise Co
$62.09
+12.44%
TECHNOLOGY · Cap: $74.38B
Smart Verdict
WallStSmart Research — data-driven comparison
Hewlett Packard Enterprise Co generates 6926% more annual revenue ($41.87B vs $595.97M). HPE leads profitability with a 6.7% profit margin vs -9.6%. HPE appears more attractively valued with a PEG of 0.43. HPE earns a higher WallStSmart Score of 75/100 (B).
AAOI
Hold38
out of 100
Grade: F
HPE
Strong Buy75
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
Growing faster than its price suggests
Revenue surging 33.7% year-over-year
Earnings expanding 410.2% YoY
Large-cap with strong market position
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
Moderate valuation
6.7% margin — thin
Weak financial health signals
Distress zone — elevated risk
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 : HPE
The strongest argument for HPE centers on PEG Ratio, Revenue Growth, EPS Growth. Revenue growth of 33.7% demonstrates continued momentum. PEG of 0.43 suggests the stock is reasonably priced for its growth.
Bear Case : AAOI
The primary concerns for AAOI are EPS Growth, Return on Equity, Free Cash Flow.
Bear Case : HPE
The primary concerns for HPE are P/E Ratio, Profit Margin, Piotroski F-Score.
Key Dynamics to Monitor
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.
HPE generates stronger free cash flow (896M), providing more financial flexibility.
Monitor COMMUNICATION EQUIPMENT industry trends, competitive dynamics, and regulatory changes.
Bottom Line
HPE scores higher overall (75/100 vs 38/100) and 33.7% 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.
Hewlett Packard Enterprise Co
TECHNOLOGY · COMMUNICATION EQUIPMENT · USA
The Hewlett Packard Enterprise Company (HPE) is an American multinational enterprise information technology company based in Houston, Texas, United States.
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