Applied Opt (AAOI)vsMotorola Solutions Inc (MSI)
AAOI
Applied Opt
$202.89
+13.31%
TECHNOLOGY · Cap: $13.57B
MSI
Motorola Solutions Inc
$410.34
-0.09%
TECHNOLOGY · Cap: $68.96B
Smart Verdict
WallStSmart Research — data-driven comparison
Motorola Solutions Inc generates 2241% more annual revenue ($11.87B vs $507.00M). MSI leads profitability with a 17.6% profit margin vs -8.6%. AAOI appears more attractively valued with a PEG of 0.78. MSI earns a higher WallStSmart Score of 54/100 (C-).
AAOI
Hold40
out of 100
Grade: F
MSI
Buy54
out of 100
Grade: C-
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Revenue surging 51.4% year-over-year
Conservative balance sheet, low leverage
Growing faster than its price suggests
Every $100 of equity generates 82 in profit
Large-cap with strong market position
Areas to Watch
Trading at 14.5x book value
0.0% earnings growth
ROE of -3.9% — below average capital efficiency
Negative free cash flow — burning cash
Expensive relative to growth rate
Premium valuation, high expectations priced in
Weak financial health signals
Trading at 26.8x 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 51.4% demonstrates continued momentum. PEG of 0.78 suggests the stock is reasonably priced for its growth.
Bull Case : MSI
The strongest argument for MSI centers on Return on Equity, Market Cap. Profitability is solid with margins at 17.6% and operating margin at 19.8%.
Bear Case : AAOI
The primary concerns for AAOI are Price/Book, EPS Growth, Return on Equity.
Bear Case : MSI
The primary concerns for MSI are PEG Ratio, P/E Ratio, Piotroski F-Score. Debt-to-equity of 3.77 is elevated, increasing financial risk.
Key Dynamics to Monitor
AAOI profiles as a hypergrowth stock while MSI is a mature play — different risk/reward profiles.
AAOI carries more volatility with a beta of 3.67 — expect wider price swings.
AAOI is growing revenue faster at 51.4% — sustainability is the question.
MSI generates stronger free cash flow (389M), providing more financial flexibility.
Bottom Line
MSI scores higher overall (54/100 vs 40/100), backed by strong 17.6% margins. 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.
Motorola Solutions Inc
TECHNOLOGY · COMMUNICATION EQUIPMENT · USA
Motorola Solutions, Inc., is an American data communications and telecommunications equipment provider that succeeded Motorola, Inc., following the spinoff of the mobile phone division into Motorola Mobility in 2011. The company is headquartered in Chicago, Illinois.
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