Head to Head Survey: Applied Optoelectronics (AAOI) vs. Ooma (OOMA)
Applied Optoelectronics (NASDAQ: AAOI) and Ooma (NYSE:OOMA) are both small-cap computer and technology companies, but which is the superior business? We will compare the two businesses based on the strength of their valuation, institutional ownership, dividends, risk, earnings, analyst recommendations and profitability.
Insider and Institutional Ownership
78.6% of Applied Optoelectronics shares are held by institutional investors. Comparatively, 75.6% of Ooma shares are held by institutional investors. 8.2% of Applied Optoelectronics shares are held by company insiders. Comparatively, 48.2% of Ooma shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.
This table compares Applied Optoelectronics and Ooma’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Earnings & Valuation
This table compares Applied Optoelectronics and Ooma’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||NetIncome||Earnings Per Share||Price/Earnings Ratio|
|Applied Optoelectronics||$260.71 million||3.14||$31.23 million||$4.15||10.17|
|Ooma||$104.52 million||1.76||-$12.94 million||($0.71)||-14.15|
Applied Optoelectronics has higher revenue and earnings than Ooma. Ooma is trading at a lower price-to-earnings ratio than Applied Optoelectronics, indicating that it is currently the more affordable of the two stocks.
This is a summary of recent ratings for Applied Optoelectronics and Ooma, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Applied Optoelectronics currently has a consensus target price of $60.75, indicating a potential upside of 43.89%. Ooma has a consensus target price of $11.92, indicating a potential upside of 18.57%. Given Applied Optoelectronics’ stronger consensus rating and higher probable upside, analysts clearly believe Applied Optoelectronics is more favorable than Ooma.
Risk and Volatility
Applied Optoelectronics has a beta of 2.9, meaning that its stock price is 190% more volatile than the S&P 500. Comparatively, Ooma has a beta of 1.35, meaning that its stock price is 35% more volatile than the S&P 500.
Applied Optoelectronics beats Ooma on 13 of the 14 factors compared between the two stocks.
About Applied Optoelectronics
Applied Optoelectronics, Inc. is a vertically integrated provider of fiber-optic networking products, primarily for networking end markets, such as Internet data center, cable television (CATV), fiber-to-the-home (FTTH) and telecommunications (telecom). The Company designs and manufactures a range of optical communications products at varying levels of integration, from components, subassemblies and modules to turnkey equipment. To Internet-based data center operators, it supplies optical transceivers that plug into switches and servers within the data center and allow these network devices to send and receive data over fiber optic cables. The Company supplies a range of products, including lasers, transmitters and transceivers, and turnkey equipment, to the CATV market. The Company designs, manufactures and integrates its own analog and digital lasers using a combination of Metal Organic Chemical Vapor Deposition (MOCVD) and its Molecular Beam Epitaxy (MBE) fabrication process.
Ooma, Inc. is a United States-based company, which offers Ooma, a communications platform for small businesses and consumers. Ooma serves as a communications hub, which offers cloud-based telephony, Internet security, home monitoring and other connected services. Ooma combines PureVoice high definition (HD) call quality features with mobile applications anytime, anywhere calling. Ooma is a full router capable of prioritizing voice data and directing traffic to ensure reliable phone service. Its enterprise-grade phone service built for small business includes features, such as calling features, including unlimited calling in United States and Canada, 911 service and toll-free numbers available; office features, including virtual receptionist, extension dialing and voicemail; mobility features, including call forwarding, voicemail forwarding and multi-ring, and one-touch Internet protocol (IP) phone features, including three way conference, transfer calls and call on hold.
Receive News & Ratings for Applied Optoelectronics Inc. Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Applied Optoelectronics Inc. and related companies with Analyst Ratings Network's FREE daily email newsletter.