WallStSmart

Applied Opt (AAOI)vsApple Inc (AAPL)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Apple Inc generates 95490% more annual revenue ($435.62B vs $455.71M). AAPL leads profitability with a 27.0% profit margin vs -8.4%. AAOI appears more attractively valued with a PEG of 0.78. AAPL earns a higher WallStSmart Score of 65/100 (C+).

AAOI

Hold

40

out of 100

Grade: F

Growth: 8.0Profit: 2.0Value: 5.0Quality: 6.0
Piotroski: 4/9Altman Z: 0.14

AAPL

Buy

65

out of 100

Grade: C+

Growth: 6.7Profit: 10.0Value: 4.3Quality: 5.5
Piotroski: 7/9Altman Z: 2.42
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

AAOISignificantly Overvalued (-32.1%)

Margin of Safety

-32.1%

Fair Value

$36.63

Current Price

$164.36

$127.73 premium

UndervaluedFair: $36.63Overvalued

Intrinsic value data unavailable for AAPL.

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

AAOI2 strengths · Avg: 9.0/10
Revenue GrowthGrowth
33.9%10/10

Revenue surging 33.9% year-over-year

PEG RatioValuation
0.788/10

Growing faster than its price suggests

AAPL6 strengths · Avg: 9.5/10
Market CapQuality
$3.98T10/10

Mega-cap, among the largest globally

Return on EquityProfitability
152.0%10/10

Every $100 of equity generates 152 in profit

Operating MarginProfitability
35.4%10/10

Strong operational efficiency at 35.4%

Free Cash FlowQuality
$51.55B10/10

Generating 51.6B in free cash flow

Profit MarginProfitability
27.0%9/10

Keeps 27 of every $100 in revenue as profit

Revenue GrowthGrowth
15.7%8/10

15.7% revenue growth

Areas to Watch

AAOI4 concerns · Avg: 3.0/10
Price/BookValuation
16.8x4/10

Trading at 16.8x book value

EPS GrowthGrowth
0.0%4/10

0.0% earnings growth

Return on EquityProfitability
-7.9%2/10

ROE of -7.9% — below average capital efficiency

Free Cash FlowQuality
$-133.63M2/10

Negative free cash flow — burning cash

AAPL4 concerns · Avg: 3.3/10
PEG RatioValuation
2.434/10

Expensive relative to growth rate

P/E RatioValuation
34.4x4/10

Premium valuation, high expectations priced in

Debt/EquityHealth
1.033/10

Elevated debt levels

Price/BookValuation
45.2x2/10

Trading at 45.2x book value

Comparative Analysis Report

WallStSmart Research

Bull 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 : AAPL

The strongest argument for AAPL centers on Market Cap, Return on Equity, Operating Margin. Profitability is solid with margins at 27.0% and operating margin at 35.4%. Revenue growth of 15.7% 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, Debt/Equity.

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 3.22 — expect wider price swings.

AAOI is growing revenue faster at 33.9% — sustainability is the question.

AAPL generates stronger free cash flow (51.6B), providing more financial flexibility.

Bottom Line

AAPL scores higher overall (65/100 vs 40/100), backed by strong 27.0% margins and 15.7% 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.

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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