Contrasting Applied Optoelectronics (NASDAQ:AAOI) & SEALSQ (NASDAQ:LAES)

Applied Optoelectronics (NASDAQ:AAOI) and SEALSQ (NASDAQ:LAES) are both small-cap computer and technology companies, but which is the better business? We will compare the two companies based on the strength of their institutional ownership, profitability, analyst recommendations, valuation, earnings, risk and dividends.

Profitability

This table compares Applied Optoelectronics and SEALSQ’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Applied Optoelectronics	-38.61%	-22.36%	-12.08%
SEALSQ	N/A	N/A	N/A

Institutional and Insider Ownership

61.7% of Applied Optoelectronics shares are owned by institutional investors. Comparatively, 1.3% of SEALSQ shares are owned by institutional investors. 5.0% of Applied Optoelectronics shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Risk and Volatility

Applied Optoelectronics has a beta of 2.36, suggesting that its stock price is 136% more volatile than the S&P 500. Comparatively, SEALSQ has a beta of -19.08, suggesting that its stock price is 2,008% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of current ratings and price targets for Applied Optoelectronics and SEALSQ, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Applied Optoelectronics	0	2	3	0	2.60
SEALSQ	0	0	1	0	3.00

Applied Optoelectronics currently has a consensus price target of $25.80, indicating a potential upside of 57.51%. SEALSQ has a consensus price target of $1.75, indicating a potential downside of 33.46%. Given Applied Optoelectronics’ higher possible upside, analysts clearly believe Applied Optoelectronics is more favorable than SEALSQ.

Earnings and Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Applied Optoelectronics	$249.37 million	3.27	-$56.05 million	($4.28)	-3.83
SEALSQ	$10.98 million	22.56	-$3.27 million	N/A	N/A

SEALSQ has lower revenue, but higher earnings than Applied Optoelectronics.

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 SEALSQ

SEALSQ Corp, together with its subsidiaries, designs, develops, and markets semiconductor chips in Europe, the Middle East, Africa, North America, the Asia Pacific, and Latin America. It offers semiconductors, such as VaultIC secure elements, secure arm platform, and smart card reader chips; identity provisioning services, such as IoT device provisioning and chip provisioning; and managed PKI for IoT solutions and trust services. The company provides device-to-cloud authentication, device attestation for matter, GSMA root certificate, device-to-device authentication, data protection, anti-counterfeiting and brand protection, security access, device ID provisioning, identity lifecycle management, and satellite IoT connectivity solutions. Its products are used in various applications, such as smart energy, smart home, automotive EV charging, consumer IoT, aerospace and military, telecommunications, logistics, medical, luxury, and other industrial applications. SEALSQ Corp was founded in 2022 and is based in Cointrin, Switzerland.