Head-To-Head Comparison: Applied Optoelectronics (NASDAQ:AAOI) & Veea (NASDAQ:VEEA)

Applied Optoelectronics (NASDAQ:AAOI) and Veea (NASDAQ:VEEA) are both technology companies, but which is the better business? We will contrast the two companies based on the strength of their valuation, profitability, risk, analyst recommendations, dividends, earnings and institutional ownership.

Risk and Volatility

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.

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for Applied Optoelectronics and Veea, as provided by MarketBeat.com.

	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 presently has a consensus target price of $139.40, indicating a potential upside of 38.87%. Given Applied Optoelectronics’ stronger consensus rating and higher possible upside, research analysts clearly believe Applied Optoelectronics is more favorable than Veea.

Insider & 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 hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Earnings and Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Applied Optoelectronics	$455.71 million	18.63	-$38.23 million	($0.78)	-128.69
Veea	$220,000.00	24.74	-$6.66 million	($5.20)	-0.34

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.

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%

Summary

Applied Optoelectronics beats Veea on 8 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.