Financial Analysis: Applied Optoelectronics (NASDAQ:AAOI) vs. Veea (NASDAQ:VEEA)

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

Analyst Ratings

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Veea	1	0	0	0	1.00
Applied Optoelectronics	1	2	3	0	2.33

Applied Optoelectronics has a consensus price target of $139.40, indicating a potential upside of 31.22%. Given Applied Optoelectronics’ stronger consensus rating and higher probable upside, analysts plainly believe Applied Optoelectronics is more favorable than Veea.

Volatility & Risk

Veea has a beta of 0.35, indicating that its share price is 65% less volatile than the S&P 500. Comparatively, Applied Optoelectronics has a beta of 3.76, indicating that its share price is 276% more volatile than the S&P 500.

Valuation and Earnings

This table compares Veea and Applied Optoelectronics”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Veea	$220,000.00	29.15	-$6.66 million	($0.26)	-0.40
Applied Optoelectronics	$455.71 million	19.71	-$38.23 million	($0.78)	-136.19

Veea has higher earnings, but lower revenue 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 Veea and Applied Optoelectronics’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Veea	N/A	N/A	-41.65%
Applied Optoelectronics	-9.57%	-1.98%	-1.34%

Insider and Institutional Ownership

25.9% of Veea shares are held by institutional investors. Comparatively, 61.7% of Applied Optoelectronics shares are held by institutional investors. 60.8% of Veea shares are held by company insiders. Comparatively, 3.8% of Applied Optoelectronics shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

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.

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.