AAOI
Applied Optoelectronics, Inc.
AAOI offers stronger valuation, but that advantage does not outweigh its weaker overall profile.
ADI
Analog Devices, Inc.
ADI has the edge over AAOI overall, supported by lower modeled downside and stronger fundamentals.
AAOI Fundamentals
| Metric | Status |
|---|---|
| Strong | |
| Under pressure | |
| Weak | |
| Unavailable |
AAOI's revenue is currently strong, but its profitability and cash flow are under pressure. There isn't enough data to rate its balance sheet.
ADI Fundamentals
| Metric | Status |
|---|---|
| Strong | |
| Strong | |
| Strong | |
| Healthy |
ADI's revenue, profitability, cash flow and balance sheet are all currently healthy.
AAOI PE Valuation
AAOI has no meaningful PE right now: it lost money over the past year. If it returns to profit as analysts expect, today's price would be 18x next year's earnings.
ADI PE Valuation
| Level | PE | Price | Vs current |
|---|---|---|---|
| Forward | 24x | $409 | — |
| Cheap | 30x | $252 | -38% |
| Fair | 41x | $349 | -15% |
| Current | 49x | $409 | — |
| Expensive | 63x | $535 | +31% |
Historical ranges are pointers, not guarantees.
ADI's PE is in its fair range at 49x. If earnings grow as analysts expect, today's price would be 24x next year's earnings, in its cheap range.
AAOI Forward outlook
| Metric | Outlook |
|---|---|
| -- | |
| Returning to profit | |
| Strong growth | |
| Strongly improving | |
| Limited | |
| Low |
Analysts expect AAOI to return to profit, with revenue growing. However, they disagree widely on these estimates.
ADI Forward outlook
| Metric | Outlook |
|---|---|
| Strongly improving | |
| Strong growth | |
| Strong growth | |
| Strongly improving | |
| Moderate | |
| Moderate |
Analysts expect strong earnings and revenue growth for ADI, with profitability improving.
AAOI Earnings Per Share
| Quarter | TTM EPS | YoY |
|---|---|---|
| Forward | $2.98 | — |
| Q3 2026 | -$0.42 | +$3.02 |
| Q2 2026 | -$0.77 | +$2.81 |
| Q1 2026 | -$0.65 | +$3.43 |
| Q4 2025 | -$0.64 | +$3.86 |
| Q3 2025 | -$3.44 | -$1.41 |
| Q2 2025 | -$3.58 | -$1.70 |
| Q1 2025 | -$4.08 | -$2.29 |
| Q4 2024 | -$4.50 | -$2.75 |
AAOI is still losing money, but far less than before: $0.42 per share over the past year, against $4.50 at its worst in late 2024.
ADI Earnings Per Share
| Quarter | TTM EPS | YoY |
|---|---|---|
| Forward | $16.89 | +100% |
| Q3 2026 | $8.43 | +116% |
| Q2 2026 | $6.73 | +84% |
| Q1 2026 | $5.47 | +75% |
| Q4 2025 | $4.56 | +39% |
| Q3 2025 | $3.91 | +17% |
| Q2 2025 | $3.66 | -15% |
| Q1 2025 | $3.13 | -44% |
| Q4 2024 | $3.28 | -50% |
ADI has the edge over AAOI on earnings quality, reporting a profit while its opponent remains loss making.
AAOI Quarterly Revenue
| Quarter | Revenue | YoY |
|---|---|---|
| Q3 2026 | $269.9M | +127% |
| Q2 2026 | $191.9M | +86% |
| Q1 2026 | $151.1M | +51% |
| Q4 2025 | $134.3M | +34% |
| Q3 2025 | $118.6M | +82% |
| Q2 2025 | $103M | +138% |
| Q1 2025 | $99.9M | +146% |
| Q4 2024 | $100.3M | +66% |
AAOI has the edge over ADI on sales, with more consistent year-over-year improvement.
| Quarter | Margin | YoY |
|---|---|---|
| Q3 2026 | -0.5% | +15 points |
| Q2 2026 | -13% | +2.6 points |
| Q1 2026 | -8.6% | +0.3 points |
| Q4 2025 | -8.6% | -2.1 points |
| Q3 2025 | -15% | +10 points |
| Q2 2025 | -16% | +45 points |
| Q1 2025 | -8.9% | +44 points |
| Q4 2024 | -6.5% | +1 points |
AAOI's operating margin was −0.5% last quarter, up 15 points from the same quarter a year ago, near the top of its range since 2019.
ADI Quarterly Revenue
| Quarter | Revenue | YoY |
|---|---|---|
| Q3 2026 | $4B | +40% |
| Q2 2026 | $3.6B | +37% |
| Q1 2026 | $3.2B | +30% |
| Q4 2025 | $3.1B | +26% |
| Q3 2025 | $2.9B | +25% |
| Q2 2025 | $2.6B | +22% |
| Q1 2025 | $2.4B | -3.6% |
| Q4 2024 | $2.4B | -10% |
ADI's revenue has grown year over year for six quarters in a row: $4B last quarter, up 40% from the same quarter a year ago.
| Quarter | Margin | YoY |
|---|---|---|
| Q3 2026 | 40% | +12 points |
| Q2 2026 | 38% | +12 points |
| Q1 2026 | 32% | +11 points |
| Q4 2025 | 31% | +7.4 points |
| Q3 2025 | 28% | +7.1 points |
| Q2 2025 | 26% | +7.8 points |
| Q1 2025 | 20% | -3 points |
| Q4 2024 | 23% | 0 points |
ADI has the edge over AAOI on profitability, with a higher operating margin.
AAOI Free Cash Flow
| Quarter | Free cash flow | YoY |
|---|---|---|
| Q3 2026 | -$369.9M | -$291.2M |
| Q2 2026 | -$265.3M | -$174.4M |
| Q1 2026 | -$143.6M | -$64.3M |
| Q4 2025 | -$104.6M | -$51.6M |
| Q3 2025 | -$78.7M | -$58M |
| Q2 2025 | -$91M | -$86M |
| Q1 2025 | -$79.3M | -$45.1M |
| Q4 2024 | -$53M | -$48.4M |
AAOI has burned cash in almost every quarter: −$883M over the past year, against −$302M the year before.
ADI Free Cash Flow
| Quarter | Free cash flow | YoY |
|---|---|---|
| Q3 2026 | $1.5B | +34% |
| Q2 2026 | $734.3M | +0.7% |
| Q1 2026 | $1.3B | +29% |
| Q4 2025 | $1.5B | +68% |
| Q3 2025 | $1.1B | +55% |
| Q2 2025 | $729.2M | +18% |
| Q1 2025 | $977.8M | +6.8% |
| Q4 2024 | $885.4M | +25% |
ADI has the edge over AAOI on cash generation, producing positive trailing cash flow while its opponent burns cash.
AAOI Total Shares
| Period | Change % | Net change |
|---|---|---|
| Quarterly | +7.7% | +6.3M shares |
| 1 year | +39% | +24.5M shares |
| 3 years | +168% | +55.1M shares |
| 5 years | +224% | +60.7M shares |
| Available history | +340% | +67.9M shares |
AAOI has 88M diluted shares, up 39% from a year ago.
ADI Total Shares
| Period | Change % | Net change |
|---|---|---|
| Quarterly | -0.3% | -1.6M shares |
| 1 year | -1.6% | -7.9M shares |
| 3 years | -2.9% | -14.7M shares |
| 5 years | +31% | +116M shares |
| Available history | +31% | +116M shares |
ADI has the edge over AAOI on shareholder dilution, with a more favorable share count trend.
| Quarter | Spent |
|---|---|
| Q3 2026 | $1.2B |
| Q2 2026 | $772.9M |
| Q1 2026 | $516.5M |
| Q4 2025 | $680.5M |
| Q3 2025 | $1.1B |
| Q2 2025 | $248.6M |
| Q1 2025 | $160.4M |
| Q4 2024 | $94.9M |
ADI spent $3.1B buying back its own shares over the past year, up 98% from the year before.
AAOI Net Leverage
AAOI's operating earnings (EBITDA) were negative over the past year, so its debt can't be measured against them.
ADI Net Leverage
| Quarter | Net Leverage | Status |
|---|---|---|
| Q3 2026 | 1.0x | Healthy |
| Q2 2026 | 1.0x | Healthy |
| Q1 2026 | 1.1x | Healthy |
| Q4 2025 | 1.3x | Healthy |
| Q3 2025 | 1.4x | Healthy |
| Q2 2025 | 1.1x | Healthy |
| Q1 2025 | 1.3x | Healthy |
| Q4 2024 | 1.4x | Healthy |
ADI's net debt is about a year of its operating earnings (EBITDA), down from 1.4 years a year ago.
AAOI Weekly Momentum
| Metric | Value | Status |
|---|---|---|
| RSI | 35.1 | Neutral |
| Stochastic | 4.8 | Oversold |
AAOI's weekly RSI is 35 (neutral) and its Stochastic is 5 (oversold).
ADI Weekly Momentum
| Metric | Value | Status |
|---|---|---|
| RSI | 55.7 | Neutral |
| Stochastic | 56.9 | Neutral |
ADI's weekly RSI is 56 (neutral) and its Stochastic is 57 (neutral).
AAOI PE vs Technology Sector
AAOI has no meaningful PE right now: it lost money over the past year.
ADI PE vs Technology Sector
| Metric | ADI | Sector median | Relative |
|---|---|---|---|
| PE | 49x | 28x | 74% above |
| PE % | 62 | 35 | 27 pts above |
ADI is trading at 49x earnings, a 74% premium to the Technology sector's median of 28x.
AAOI Weekly Moving Averages
| Moving average | MA price | Relative |
|---|---|---|
| 8 week MA | $80.2 | 34% below |
| 20 week MA | $100.6 | 47% below |
| 50 week MA | $100.3 | 47% below |
| 100 week MA | $62.3 | 15% below |
| 200 week MA | $36.9 | 43% above |
AAOI has fallen below most of its moving averages, though it's still 43% above its 200-week average.
ADI Weekly Moving Averages
| Moving average | MA price | Relative |
|---|---|---|
| 8 week MA | $399.2 | 2.5% above |
| 20 week MA | $385.6 | 6.1% above |
| 50 week MA | $360.9 | 13% above |
| 100 week MA | $292.3 | 40% above |
| 200 week MA | $245.2 | 67% above |
ADI has the edge over AAOI on trend strength, trading above more of its moving averages.
AAOI Yearly ROI
| Year | Start price | End price | ROI |
|---|---|---|---|
| 2020 | $11.5 | $8.77 | -24% |
| 2021 | $8.77 | $5.64 | -36% |
| 2022 | $5.64 | $1.95 | -65% |
| 2023 | $1.95 | $19.3 | +891% |
| 2024 | $19.3 | $37.7 | +95% |
| 2025 | $37.7 | $37.2 | -1.5% |
| 2026 YTD | $37.2 | $52.9 | +42% |
AAOI's yearly returns have swung widely, from +891% in 2023 to −65% in 2022. It's up 42% so far in 2026.
ADI Yearly ROI
| Year | Start price | End price | ROI |
|---|---|---|---|
| 2020 | $119.5 | $144.5 | +21% |
| 2021 | $144.5 | $172.7 | +20% |
| 2022 | $172.7 | $163.8 | -5.1% |
| 2023 | $163.8 | $198.6 | +21% |
| 2024 | $198.6 | $217.0 | +9.3% |
| 2025 | $217.0 | $276.8 | +28% |
| 2026 YTD | $276.8 | $409.3 | +48% |
ADI has the edge over AAOI on returns for 2026, with the stronger performance.