Applied Optoelectronics (NASDAQ:AAOI – Get Free Report) and Veea (NASDAQ:VEEA – Get Free Report) are both technology companies, but which is the superior investment? We will contrast the two companies based on the strength of their profitability, analyst recommendations, dividends, risk, valuation, earnings and institutional ownership.
Volatility and Risk
Applied Optoelectronics has a beta of 3.79, suggesting that its share price is 279% more volatile than the S&P 500. Comparatively, Veea has a beta of 0.29, suggesting that its share price is 71% less volatile than the S&P 500.
Insider and Institutional Ownership
61.7% of Applied Optoelectronics shares are owned by institutional investors. Comparatively, 25.9% of Veea shares are owned by institutional investors. 3.8% of Applied Optoelectronics shares are owned by company insiders. Comparatively, 60.8% of Veea shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.
Analyst Recommendations
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Applied Optoelectronics | 1 | 2 | 3 | 0 | 2.33 |
| Veea | 1 | 0 | 0 | 0 | 1.00 |
Applied Optoelectronics currently has a consensus price target of $139.40, indicating a potential upside of 32.10%. Given Applied Optoelectronics’ stronger consensus rating and higher probable upside, research analysts clearly believe Applied Optoelectronics is more favorable than Veea.
Profitability
This table compares Applied Optoelectronics and Veea’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Applied Optoelectronics | -9.57% | -1.98% | -1.34% |
| Veea | N/A | N/A | -41.65% |
Earnings & Valuation
This table compares Applied Optoelectronics and Veea”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Applied Optoelectronics | $595.97 million | 14.97 | -$38.23 million | ($0.78) | -135.29 |
| Veea | $491,488.00 | 10.76 | -$6.66 million | ($5.20) | -0.33 |
Veea has lower revenue, but higher earnings than Applied Optoelectronics. Applied Optoelectronics is trading at a lower price-to-earnings ratio than Veea, indicating that it is currently the more affordable of the two stocks.
Summary
Applied Optoelectronics beats Veea on 9 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 Veea
Veea Inc. provides computing, multiaccess multiprotocol communications, edge storage, and cybersecurity solutions. The company offers multiaccess edge computing (MEC) platform that redefines connectivity and computing at the edge by integrating functions of servers, network attached storage (NAS), routers, firewalls, Wi-Fi Access Points, IoT gateways, and 4G and 5G connections; and Veea Edge Platform enables direct connections from the optical fiber, cellular, and satellite networks. It also provides VeeaHub STAX, an edge computing product integrated with wireless access, including Wi-Fi 6; VeeaHub that offers connectivity options for pro indoor smart edge applications; and VeeaHub Outdoor that integrates with wireless connectivity for smart edge applications in outdoor and industrial environments. The company also offers TROLLEE, a smart shopping cart platform; the VeeaHub toolkit; and Veea AdEdge, an advertising platform. Veea Inc. was founded in 2014 and is headquartered in New York, New York.
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