Applied Opt (AAOI)vsMotorola Solutions Inc (MSI)
AAOI
Applied Opt
$114.41
+0.45%
TECHNOLOGY · Cap: $8.85B
MSI
Motorola Solutions Inc
$451.01
-0.82%
TECHNOLOGY · Cap: $75.74B
Smart Verdict
WallStSmart Research — data-driven comparison
Motorola Solutions Inc generates 2463% more annual revenue ($11.68B vs $455.71M). MSI leads profitability with a 18.4% profit margin vs -8.4%. AAOI appears more attractively valued with a PEG of 0.78. MSI earns a higher WallStSmart Score of 62/100 (C+).
AAOI
Hold38
out of 100
Grade: F
MSI
Buy62
out of 100
Grade: C+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Intrinsic value data unavailable for AAOI.
Margin of Safety
-60.8%
Fair Value
$261.93
Current Price
$451.01
$189.08 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Revenue surging 33.9% year-over-year
Growing faster than its price suggests
Every $100 of equity generates 104 in profit
Large-cap with strong market position
Strong operational efficiency at 27.8%
Generating 1.1B in free cash flow
Areas to Watch
Trading at 11.7x book value
0.0% earnings growth
ROE of -7.9% — 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 31.0x book value
Comparative Analysis Report
WallStSmart ResearchBull 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 : MSI
The strongest argument for MSI centers on Return on Equity, Market Cap, Operating Margin. Profitability is solid with margins at 18.4% and operating margin at 27.8%. Revenue growth of 12.3% demonstrates continued momentum.
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 4.05 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 3.27 — expect wider price swings.
AAOI is growing revenue faster at 33.9% — sustainability is the question.
MSI generates stronger free cash flow (1.1B), providing more financial flexibility.
Bottom Line
MSI scores higher overall (62/100 vs 38/100), backed by strong 18.4% margins and 12.3% 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.
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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