SemiLEDs (NASDAQ:LEDS) & Applied Optoelectronics (NASDAQ:AAOI) Head-To-Head Contrast

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

Institutional & Insider Ownership

0.1% of SemiLEDs shares are owned by institutional investors. Comparatively, 62.0% of Applied Optoelectronics shares are owned by institutional investors. 39.8% of SemiLEDs shares are owned by company insiders. Comparatively, 6.6% of Applied Optoelectronics shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Earnings and Valuation

This table compares SemiLEDs and Applied Optoelectronics’ gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
SemiLEDs $5.90 million 1.44 -$3.57 million N/A N/A
Applied Optoelectronics $267.46 million 0.77 -$2.15 million $0.53 19.34

Applied Optoelectronics has higher revenue and earnings than SemiLEDs.

Analyst Ratings

This is a breakdown of recent ratings for SemiLEDs and Applied Optoelectronics, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
SemiLEDs 0 0 0 0 N/A
Applied Optoelectronics 2 4 1 0 1.86

Applied Optoelectronics has a consensus price target of $11.30, suggesting a potential upside of 10.24%. Given Applied Optoelectronics’ higher probable upside, analysts plainly believe Applied Optoelectronics is more favorable than SemiLEDs.

Risk & Volatility

SemiLEDs has a beta of 2.5, suggesting that its share price is 150% more volatile than the S&P 500. Comparatively, Applied Optoelectronics has a beta of 2.05, suggesting that its share price is 105% more volatile than the S&P 500.

Profitability

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

Net Margins Return on Equity Return on Assets
SemiLEDs -60.40% -104.05% -29.05%
Applied Optoelectronics -19.57% -8.12% -5.31%

Summary

Applied Optoelectronics beats SemiLEDs on 8 of the 11 factors compared between the two stocks.

About SemiLEDs

SemiLEDs Corporation develops, manufactures, and sells light emitting diode (LED) chips and LED components in the United States, Taiwan, the Netherlands, France, China, Germany, Hong Kong, and internationally. The company's products are used for general lighting applications, including street lights and commercial, industrial, system and residential lighting. Its LED chips also used in specialty industrial applications, such as ultraviolet, or UV, curing of polymers, LED light therapy in medical/cosmetic applications, counterfeit detection, LED lighting for horticulture applications, architectural lighting and entertainment lighting. The company also sells enhanced vertical, LED product series in blue, white, green, and UV in selected markets; LED chips to packagers or to distributors; and lighting products primarily to original design manufacturers of lighting products and the end-users of lighting devices, as well as packages and sells its LED chips into LED components to distributors. SemiLEDs Corporation was incorporated in 2005 and is headquartered in Chunan, Taiwan.

About Applied Optoelectronics

Applied Optoelectronics, Inc. designs, manufactures, and sells various fiber-optic networking products worldwide. It offers optical modules, lasers, transmitters and transceivers, and turn-key equipment, as well as headend, node, and distribution equipment. The company sells its products to Internet data center operators, cable television and telecommunications equipment manufacturers, and Internet service providers through its direct and indirect sales channels. Applied Optoelectronics, Inc. was founded in 1997 and is headquartered in Sugar Land, Texas.

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