AAOI
Applied Optoelectronics, Inc.
AAOI has a slight edge over ALGM overall, supported by stronger valuation and stronger modeled upside.
ALGM
Allegro MicroSystems, Inc.
ALGM has lower modeled downside risk, despite its lower overall score.
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.
ALGM Fundamentals
| Metric | Status |
|---|---|
| Healthy | |
| Healthy | |
| Healthy | |
| Strong |
ALGM'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.
ALGM PE Valuation
| Level | PE | Price | Vs current |
|---|---|---|---|
| Cheap | 25x | $3.95 | -88% |
| Forward | 25x | $31.71 | — |
| Fair | 42x | $6.66 | -79% |
| Expensive | 60x | $9.54 | -70% |
| Current | 198x | $31.71 | — |
Historical ranges are pointers, not guarantees.
ALGM's PE is in its expensive range at 198x. If earnings grow as analysts expect, today's price would be 25x 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.
ALGM Forward outlook
| Metric | Outlook |
|---|---|
| Strongly improving | |
| Strong growth | |
| Strong growth | |
| Strongly improving | |
| Limited | |
| High |
Analysts expect strong earnings and revenue growth for ALGM, 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.
ALGM Earnings Per Share
| Quarter | TTM EPS | YoY |
|---|---|---|
| Forward | $1.27 | +696% |
| Q3 2026 | $0.16 | +$0.32 |
| Q2 2026 | $0.07 | +$0.44 |
| Q1 2026 | -$0.08 | +$0.31 |
| Q4 2025 | -$0.08 | +$0.27 |
| Q3 2025 | -$0.16 | -$0.02 |
| Q2 2025 | -$0.37 | -197% |
| Q1 2025 | -$0.39 | -150% |
| Q4 2024 | -$0.35 | -130% |
ALGM 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 ALGM 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.
ALGM Quarterly Revenue
| Quarter | Revenue | YoY |
|---|---|---|
| Q3 2026 | $276.9M | +29% |
| Q2 2026 | $259.2M | +27% |
| Q1 2026 | $243.2M | +26% |
| Q4 2025 | $229.2M | +29% |
| Q3 2025 | $214.3M | +14% |
| Q2 2025 | $203.4M | +22% |
| Q1 2025 | $192.8M | -20% |
| Q4 2024 | $177.9M | -30% |
ALGM's revenue has grown year over year for six quarters in a row: $277M last quarter, up 29% from the same quarter a year ago.
| Quarter | Margin | YoY |
|---|---|---|
| Q3 2026 | 13% | +9.9 points |
| Q2 2026 | 9.8% | +11 points |
| Q1 2026 | 2.2% | +9.1 points |
| Q4 2025 | 4.2% | +4.2 points |
| Q3 2025 | 2.9% | +0.7 points |
| Q2 2025 | -1.4% | +5 points |
| Q1 2025 | -6.8% | -13 points |
| Q4 2024 | 0% | -14 points |
ALGM 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.
ALGM Free Cash Flow
| Quarter | Free cash flow | YoY |
|---|---|---|
| Q3 2026 | $30.5M | +119% |
| Q2 2026 | $14M | -73% |
| Q1 2026 | $18.7M | +25% |
| Q4 2025 | $41.3M | +$63.1M |
| Q3 2025 | $13.9M | +150% |
| Q2 2025 | $51M | +120% |
| Q1 2025 | $15M | +$16.5M |
| Q4 2024 | -$21.8M | -157% |
ALGM 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.
ALGM Total Shares
| Period | Change % | Net change |
|---|---|---|
| Quarterly | 0% | -52.6K shares |
| 1 year | +0.8% | +1.4M shares |
| 3 years | -3.8% | -7.4M shares |
| 5 years | -2.1% | -4M shares |
| Available history | 0% | -32.5K shares |
ALGM has the edge over AAOI on shareholder dilution, with a more favorable share count trend.
| Quarter | Spent |
|---|---|
| Q1 2025 | — |
| Q4 2024 | $116,000 |
| Q2 2020 | — |
| Q1 2020 | — |
| Q4 2019 | — |
AAOI Net Leverage
AAOI's operating earnings (EBITDA) were negative over the past year, so its debt can't be measured against them.
ALGM Net Leverage
| Quarter | Net Leverage | Status |
|---|---|---|
| Q3 2026 | 0.7x | Very low |
| Q2 2026 | 1.1x | Healthy |
| Q1 2026 | 1.4x | Healthy |
| Q4 2025 | 2.0x | Moderate |
| Q3 2025 | 3.1x | Elevated |
| Q2 2025 | 3.5x | Elevated |
| Q1 2025 | 5.0x | High |
| Q4 2024 | 3.0x | Moderate |
ALGM's net debt is less than a year of its operating earnings (EBITDA), down from 3.1 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).
ALGM Weekly Momentum
| Metric | Value | Status |
|---|---|---|
| RSI | 41.3 | Neutral |
| Stochastic | 13.9 | Oversold |
ALGM's weekly RSI is 41 (neutral) and its Stochastic is 14 (oversold).
AAOI PE vs Technology Sector
AAOI has no meaningful PE right now: it lost money over the past year.
ALGM PE vs Technology Sector
| Metric | ALGM | Sector median | Relative |
|---|---|---|---|
| PE | 198x | 28x | 611% above |
| PE % | 91 | 38 | 53 pts above |
ALGM is trading at 198x earnings, a 611% 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 the edge over ALGM on trend strength, trading above more of its moving averages.
ALGM Weekly Moving Averages
| Moving average | MA price | Relative |
|---|---|---|
| 8 week MA | $33.2 | 4.4% below |
| 20 week MA | $38.9 | 18% below |
| 50 week MA | $38.7 | 18% below |
| 100 week MA | $32.9 | 3.7% below |
| 200 week MA | $32.4 | 2.2% below |
ALGM is in a downtrend: it's below all five of its weekly moving averages, and 2.2% below its 200-week average.
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 has the edge over ALGM on returns for 2026, with the stronger performance.
ALGM Yearly ROI
| Year | Start price | End price | ROI |
|---|---|---|---|
| 2020 | $18.3 | $24.8 | +35% |
| 2021 | $24.8 | $34.5 | +39% |
| 2022 | $34.5 | $30.2 | -12% |
| 2023 | $30.2 | $30.3 | +0.1% |
| 2024 | $30.3 | $22.3 | -26% |
| 2025 | $22.3 | $26.9 | +21% |
| 2026 YTD | $26.9 | $31.7 | +18% |
ALGM has finished higher in four of the last six years. It's up 18% so far in 2026.