Head to Head Review: Applied Optoelectronics (NASDAQ:AAOI) and Nano Labs (NASDAQ:NA)

Nano Labs (NASDAQ:NA) and Applied Optoelectronics (NASDAQ:AAOI) are both computer and technology companies, but which is the better investment? We will compare the two companies based on the strength of their institutional ownership, valuation, risk, analyst recommendations, earnings, dividends and profitability.

Risk & Volatility

Nano Labs has a beta of 3.16, indicating that its stock price is 216% more volatile than the S&P 500. Comparatively, Applied Optoelectronics has a beta of 3.2, indicating that its stock price is 220% more volatile than the S&P 500.

Institutional & Insider Ownership

50.7% of Nano Labs shares are owned by institutional investors. Comparatively, 61.7% of Applied Optoelectronics shares are owned by institutional investors. 4.5% of Applied Optoelectronics shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Profitability

This table compares Nano Labs and Applied Optoelectronics’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Nano Labs	N/A	N/A	N/A
Applied Optoelectronics	-8.39%	-5.29%	-2.99%

Earnings & Valuation

This table compares Nano Labs and Applied Optoelectronics”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Nano Labs	$5.65 million	15.41	-$15.75 million	($6.80)	-0.43
Applied Optoelectronics	$455.71 million	16.82	-$38.23 million	($0.65)	-156.80

Nano Labs has higher earnings, but lower revenue than Applied Optoelectronics. Applied Optoelectronics is trading at a lower price-to-earnings ratio than Nano Labs, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a breakdown of recent ratings and target prices for Nano Labs and Applied Optoelectronics, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Nano Labs	1	0	0	0	1.00
Applied Optoelectronics	1	3	3	0	2.29

Applied Optoelectronics has a consensus target price of $52.80, indicating a potential downside of 48.19%. Given Applied Optoelectronics’ stronger consensus rating and higher possible upside, analysts plainly believe Applied Optoelectronics is more favorable than Nano Labs.

Summary

Applied Optoelectronics beats Nano Labs on 9 of the 14 factors compared between the two stocks.

About Nano Labs

Nano Labs Ltd operates as a fabless integrated circuit design company and product solution provider in the People's Republic of China and internationally. It develops high throughput computing and high-performance computing chips. The company also offers distributed computing and storage solutions, smart network interface cards, and vision computing chips, as well as distributed rendering technology. In addition, it engages in the research and development of software. Its customers include enterprises and individual buyers. The company was founded in 2019 and is headquartered in Hangzhou, the People's Republic of China.

About Applied Optoelectronics

Applied Optoelectronics, Inc. designs, manufactures, and sells fiber-optic networking products in the United States, Taiwan, and China. It offers optical modules, optical filters, lasers, laser components, subassemblies, transmitters and transceivers, turn-key equipment, headend, node, distribution equipment, and amplifiers. The company sells its products to internet data center operators, cable television, telecom equipment manufacturers, fiber-to-the-home, and internet service providers through its direct and indirect sales channels. Applied Optoelectronics, Inc. was incorporated in 1997 and is headquartered in Sugar Land, Texas.