Applied Opt (AAOI)vsLumentum Holdings Inc (LITE)
AAOI
Applied Opt
$105.36
-9.11%
TECHNOLOGY · Cap: $9.47B
LITE
Lumentum Holdings Inc
$927.03
-9.92%
TECHNOLOGY · Cap: $83.93B
Smart Verdict
WallStSmart Research — data-driven comparison
Lumentum Holdings Inc generates 406% more annual revenue ($3.01B vs $595.97M). AAOI leads profitability with a -9.6% profit margin vs -230.1%. LITE appears more attractively valued with a PEG of 0.63. LITE earns a higher WallStSmart Score of 57/100 (C).
AAOI
Hold38
out of 100
Grade: F
LITE
Buy57
out of 100
Grade: C
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
Revenue surging 109.3% year-over-year
Earnings expanding 71.1% YoY
Large-cap with strong market position
Growing faster than its price suggests
Strong operational efficiency at 28.0%
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
Trading at 17.7x book value
ROE of -149.3% — below average capital efficiency
Distress zone — elevated risk
Currently unprofitable
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 : LITE
The strongest argument for LITE centers on Revenue Growth, EPS Growth, Market Cap. Revenue growth of 109.3% demonstrates continued momentum. PEG of 0.63 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 : LITE
The primary concerns for LITE are Price/Book, Return on Equity, Altman Z-Score.
Key Dynamics to Monitor
AAOI carries more volatility with a beta of 3.78 — expect wider price swings.
LITE is growing revenue faster at 109.3% — sustainability is the question.
LITE generates stronger free cash flow (287M), providing more financial flexibility.
Monitor COMMUNICATION EQUIPMENT industry trends, competitive dynamics, and regulatory changes.
Bottom Line
LITE scores higher overall (57/100 vs 38/100) and 109.3% 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.
Lumentum Holdings Inc
TECHNOLOGY · COMMUNICATION EQUIPMENT · USA
Lumentum Holdings Inc. manufactures and sells optical and photonic products in the Americas, Asia-Pacific, Europe, the Middle East, and Africa. The company is headquartered in San Jose, California.
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