Applied Opt (AAOI)vsHewlett Packard Enterprise Co (HPE)
AAOI
Applied Opt
$202.89
+13.31%
TECHNOLOGY · Cap: $13.57B
HPE
Hewlett Packard Enterprise Co
$53.73
+1.76%
TECHNOLOGY · Cap: $63.79B
Smart Verdict
WallStSmart Research — data-driven comparison
Hewlett Packard Enterprise Co generates 7552% more annual revenue ($38.79B vs $507.00M). HPE leads profitability with a 4.0% profit margin vs -8.6%. AAOI appears more attractively valued with a PEG of 0.78. HPE earns a higher WallStSmart Score of 59/100 (C).
AAOI
Hold40
out of 100
Grade: F
HPE
Buy59
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
Revenue surging 40.0% year-over-year
Large-cap with strong market position
Growing faster than its price suggests
Reasonable price relative to book value
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
ROE of 6.0% — below average capital efficiency
4.0% margin — thin
Weak financial health signals
Premium valuation, high expectations priced in
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 : HPE
The strongest argument for HPE centers on Revenue Growth, Market Cap, PEG Ratio. Revenue growth of 40.0% demonstrates continued momentum. PEG of 0.85 suggests the stock is reasonably priced for its growth.
Bear Case : AAOI
The primary concerns for AAOI are Price/Book, EPS Growth, Return on Equity.
Bear Case : HPE
The primary concerns for HPE are Return on Equity, Profit Margin, Piotroski F-Score. A P/E of 45.0x leaves little room for execution misses. Thin 4.0% margins leave little buffer for downturns.
Key Dynamics to Monitor
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.
HPE generates stronger free cash flow (827M), providing more financial flexibility.
Monitor COMMUNICATION EQUIPMENT industry trends, competitive dynamics, and regulatory changes.
Bottom Line
HPE scores higher overall (59/100 vs 40/100) and 40.0% 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.
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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