Applied Optoelectronics (NASDAQ:AAOI) and SEALSQ (NASDAQ:LAES) Critical Analysis

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

Volatility and Risk

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

Profitability

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

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

Analyst Ratings

This is a summary of current ratings for SEALSQ and Applied Optoelectronics, as reported by MarketBeat.com.

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

SEALSQ currently has a consensus price target of $1.75, indicating a potential downside of 37.05%. Applied Optoelectronics has a consensus price target of $25.80, indicating a potential upside of 61.65%. Given Applied Optoelectronics’ higher possible upside, analysts plainly believe Applied Optoelectronics is more favorable than SEALSQ.

Valuation & Earnings

This table compares SEALSQ 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
SEALSQ	$10.98 million	23.84	-$3.27 million	N/A	N/A
Applied Optoelectronics	$249.37 million	3.19	-$56.05 million	($4.28)	-3.73

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

Institutional & Insider Ownership

1.3% of SEALSQ shares are owned by institutional investors. Comparatively, 61.7% of Applied Optoelectronics shares are owned by institutional investors. 5.0% 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 is poised for long-term growth.

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.

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.