WallStSmart

Applied Opt (AAOI)vsApple Inc (AAPL)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Apple Inc generates 88942% more annual revenue ($451.44B vs $507.00M). AAPL leads profitability with a 27.2% profit margin vs -8.6%. AAOI appears more attractively valued with a PEG of 0.78. AAPL earns a higher WallStSmart Score of 67/100 (B-).

AAOI

Hold

40

out of 100

Grade: F

Growth: 8.0Profit: 2.0Value: 6.0Quality: 7.5
Piotroski: 5/9Altman Z: 1.12

AAPL

Strong Buy

67

out of 100

Grade: B-

Growth: 6.7Profit: 10.0Value: 4.3Quality: 6.5
Piotroski: 7/9Altman Z: 2.42

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

AAOI3 strengths · Avg: 9.0/10
Revenue GrowthGrowth
51.4%10/10

Revenue surging 51.4% year-over-year

Debt/EquityHealth
0.169/10

Conservative balance sheet, low leverage

PEG RatioValuation
0.788/10

Growing faster than its price suggests

AAPL6 strengths · Avg: 9.5/10
Market CapQuality
$4.63T10/10

Mega-cap, among the largest globally

Return on EquityProfitability
115.1%10/10

Every $100 of equity generates 115 in profit

Operating MarginProfitability
32.3%10/10

Strong operational efficiency at 32.3%

Free Cash FlowQuality
$26.73B10/10

Generating 26.7B in free cash flow

Profit MarginProfitability
27.2%9/10

Keeps 27 of every $100 in revenue as profit

Revenue GrowthGrowth
16.6%8/10

16.6% revenue growth

Areas to Watch

AAOI4 concerns · Avg: 3.0/10
Price/BookValuation
14.5x4/10

Trading at 14.5x book value

EPS GrowthGrowth
0.0%4/10

0.0% earnings growth

Return on EquityProfitability
-3.9%2/10

ROE of -3.9% — below average capital efficiency

Free Cash FlowQuality
$-143.58M2/10

Negative free cash flow — burning cash

AAPL3 concerns · Avg: 3.3/10
PEG RatioValuation
2.464/10

Expensive relative to growth rate

P/E RatioValuation
38.2x4/10

Premium valuation, high expectations priced in

Price/BookValuation
42.3x2/10

Trading at 42.3x book value

Comparative Analysis Report

WallStSmart Research

Bull 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 : AAPL

The strongest argument for AAPL centers on Market Cap, Return on Equity, Operating Margin. Profitability is solid with margins at 27.2% and operating margin at 32.3%. Revenue growth of 16.6% demonstrates continued momentum.

Bear Case : AAOI

The primary concerns for AAOI are Price/Book, EPS Growth, Return on Equity.

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 3.67 — expect wider price swings.

AAOI is growing revenue faster at 51.4% — sustainability is the question.

AAPL generates stronger free cash flow (26.7B), providing more financial flexibility.

Bottom Line

AAPL scores higher overall (67/100 vs 40/100), backed by strong 27.2% margins and 16.6% 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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