Applied Optoelectronics (NASDAQ:AAOI – Get Free Report) and Amkor Technology (NASDAQ:AMKR – Get Free Report) are both computer and technology companies, but which is the better investment? We will compare the two companies based on the strength of their earnings, valuation, institutional ownership, risk, profitability, analyst recommendations and dividends.
Risk and Volatility
Applied Optoelectronics has a beta of 3.23, suggesting that its share price is 223% more volatile than the S&P 500. Comparatively, Amkor Technology has a beta of 1.94, suggesting that its share price is 94% more volatile than the S&P 500.
Analyst Recommendations
This is a summary of current ratings and price targets for Applied Optoelectronics and Amkor Technology, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Applied Optoelectronics | 1 | 3 | 3 | 0 | 2.29 |
| Amkor Technology | 0 | 8 | 4 | 0 | 2.33 |
Institutional & Insider Ownership
61.7% of Applied Optoelectronics shares are owned by institutional investors. Comparatively, 42.8% of Amkor Technology shares are owned by institutional investors. 4.5% of Applied Optoelectronics shares are owned by company insiders. Comparatively, 26.9% of Amkor Technology shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.
Valuation & Earnings
This table compares Applied Optoelectronics and Amkor Technology”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Applied Optoelectronics | $455.72 million | 19.41 | -$38.23 million | ($0.65) | -180.98 |
| Amkor Technology | $6.71 billion | 1.76 | $373.89 million | $1.51 | 31.54 |
Amkor Technology has higher revenue and earnings than Applied Optoelectronics. Applied Optoelectronics is trading at a lower price-to-earnings ratio than Amkor Technology, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Applied Optoelectronics and Amkor Technology’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Applied Optoelectronics | -8.39% | -5.29% | -2.99% |
| Amkor Technology | 5.57% | 8.66% | 4.83% |
Summary
Amkor Technology beats Applied Optoelectronics on 11 of the 14 factors compared between the two stocks.
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.
About Amkor Technology
Amkor Technology, Inc. provides outsourced semiconductor packaging and test services in the United States, Japan, Europe, the Middle East, Africa, and the Asia Pacific. It offers turnkey packaging and test services, including semiconductor wafer bump, wafer probe, wafer back-grind, package design, packaging, system-level and final test, and drop shipment services; flip chip scale package products for smartphones, tablets, and other mobile consumer electronic devices; flip chip stacked chip scale packages that are used to stack memory digital baseband, and as applications processors in mobile devices; flip-chip ball grid array packages for various networking, storage, computing, automotive, and consumer applications; and memory products for system memory or platform data storage. The company also provides wafer-level CSP packages for power management, transceivers, sensors, wireless charging, codecs, radar, and specialty silicon; wafer-level fan-out packages used in power management, transceivers, radar, and specialty silicon; silicon wafer integrated fan-out technology that replaces a laminate substrate with a thinner structure; leadframe packages for electronic devices and mixed-signal applications; and substrate-based wirebond packages used to connect a die to a substrate. In addition, it offers micro-electro-mechanical systems packages that are miniaturized mechanical and electromechanical devices; and advanced system-in-package modules used in radio frequency and front end modules, basebands, connectivity, fingerprint sensors, display and touch screen drivers, sensors and MEMS, and NAND memory and solid-state drives. Further, the company provides wafer, package, and system level test services, as well as burn-in test and test development services. It serves integrated device manufacturers, fabless semiconductor companies, original equipment manufacturers, and contract foundries. The company was founded in 1968 and is headquartered in Tempe, Arizona.
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