Analyzing Applied Optoelectronics (NASDAQ:AAOI) & China Sunergy (OTCMKTS:CSUNY)

China Sunergy (OTCMKTS:CSUNY) and Applied Optoelectronics (NASDAQ:AAOI) are both oils/energy companies, but which is the superior investment? We will compare the two companies based on the strength of their valuation, institutional ownership, dividends, analyst recommendations, profitability, risk and earnings.

Profitability

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

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

Risk and Volatility

China Sunergy has a beta of 3.78, meaning that its stock price is 278% more volatile than the S&P 500. Comparatively, Applied Optoelectronics has a beta of 2.37, meaning that its stock price is 137% more volatile than the S&P 500.

Insider and Institutional Ownership

61.7% of Applied Optoelectronics shares are held by institutional investors. 5.4% of Applied Optoelectronics shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Valuation & Earnings

This table compares China Sunergy 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
China Sunergy	N/A	N/A	N/A	N/A	N/A
Applied Optoelectronics	$209.55 million	8.44	-$56.05 million	($2.06)	-18.32

China Sunergy has higher earnings, but lower revenue than Applied Optoelectronics.

Analyst Ratings

This is a summary of recent ratings and target prices for China Sunergy and Applied Optoelectronics, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
China Sunergy	0	0	0	0	0.00
Applied Optoelectronics	1	1	3	0	2.40

Applied Optoelectronics has a consensus target price of $29.20, suggesting a potential downside of 22.63%. Given Applied Optoelectronics’ stronger consensus rating and higher possible upside, analysts clearly believe Applied Optoelectronics is more favorable than China Sunergy.

Summary

Applied Optoelectronics beats China Sunergy on 6 of the 10 factors compared between the two stocks.

About China Sunergy

China Sunergy Co., Ltd., together with its subsidiaries, designs, develops, manufactures, and markets solar cells and modules in the People's Republic of China and internationally. The company offers monocrystalline and multicrystalline silicon solar cells; and standard P-type solar cells, HP solar cells, and emitter cells, as well as solar modules for use in a range of residential, commercial, industrial, and other solar power generation systems. It also invests in, develops, and operates solar power projects. The company sells its products to system integrators, solar power project developers, and solar power product distributors under the CSUN brand name, as well as on an original equipment manufacturing basis. China Sunergy Co., Ltd. was founded in 2004 and is headquartered in Nanjing, the People's Republic of China.

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.