SEALSQ (NASDAQ:LAES) and Applied Optoelectronics (NASDAQ:AAOI) Head to Head Contrast

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

Volatility and Risk

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

Valuation & Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Applied Optoelectronics	$249.37 million	3.07	-$56.05 million	($4.28)	-3.59
SEALSQ	$10.98 million	22.30	-$3.27 million	N/A	N/A

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

Profitability

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

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

Analyst Recommendations

This is a summary of recent recommendations for Applied Optoelectronics and SEALSQ, as provided by MarketBeat.

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

Applied Optoelectronics presently has a consensus price target of $25.80, indicating a potential upside of 68.08%. SEALSQ has a consensus price target of $1.75, indicating a potential downside of 32.69%. Given Applied Optoelectronics’ higher probable upside, equities analysts plainly believe Applied Optoelectronics is more favorable than SEALSQ.

Insider and Institutional Ownership

61.7% of Applied Optoelectronics shares are held by institutional investors. Comparatively, 1.3% of SEALSQ shares are held by institutional investors. 5.0% of Applied Optoelectronics shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

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 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.