AAOI
Applied Optoelectronics, Inc.
AAOI has the edge over DXC overall, supported by stronger valuation and stronger modeled upside.
DXC
DXC Technology Company
DXC 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.
DXC Fundamentals
| Metric | Status |
|---|---|
| Stable | |
| Stable | |
| Stable | |
| Healthy |
DXC's balance sheet is currently healthy, and its revenue, profitability and cash flow are stable.
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.
DXC PE Valuation
| Level | PE | Price | Vs current |
|---|---|---|---|
| Forward | 5.7x | $14.85 | — |
| Cheap | 6.9x | $4.77 | -68% |
| Fair | 12x | $8.59 | -42% |
| Current | 22x | $14.85 | — |
| Expensive | 47x | $32.15 | +117% |
Historical ranges are pointers, not guarantees.
DXC's PE is in its fair range at 22x. On analysts' estimates for next year's earnings, today's price would be 5.7x, in its cheap range.
AAOI Forward outlook
| Metric | Outlook |
|---|---|
| -- | |
| Returning to profit | |
| Strong growth | |
| Strongly improving | |
| Limited | |
| Low |
AAOI has the edge over DXC on the outlook, with more favorable earnings and revenue expectations.
DXC Forward outlook
| Metric | Outlook |
|---|---|
| Strongly improving | |
| Stable | |
| Stable | |
| Stable | |
| Limited | |
| Moderate |
Analysts expect DXC's earnings, revenue and profitability to hold roughly steady.
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.
DXC Earnings Per Share
| Quarter | TTM EPS | YoY |
|---|---|---|
| Forward | $2.58 | +274% |
| Q3 2026 | $0.69 | -66% |
| Q2 2026 | $0.74 | -64% |
| Q1 2026 | $0.10 | -95% |
| Q4 2025 | $2.32 | +$2.65 |
| Q3 2025 | $2.02 | +1088% |
| Q2 2025 | $2.05 | +377% |
| Q1 2025 | $2.10 | +357% |
| Q4 2024 | -$0.33 | +$1.48 |
DXC 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 DXC 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.
DXC Quarterly Revenue
| Quarter | Revenue | YoY |
|---|---|---|
| Q3 2026 | $3B | -4% |
| Q2 2026 | $3B | -5.1% |
| Q1 2026 | $3.1B | -1.2% |
| Q4 2025 | $3.2B | -1% |
| Q3 2025 | $3.2B | -2.5% |
| Q2 2025 | $3.2B | -2.4% |
| Q1 2025 | $3.2B | -6.4% |
| Q4 2024 | $3.2B | -5.1% |
DXC's revenue fell from its 2019 peak and has held roughly level since: $3B last quarter, down 4% from the same quarter a year ago.
| Quarter | Margin | YoY |
|---|---|---|
| Q3 2026 | 6.2% | -1.9 points |
| Q2 2026 | 5% | -1.8 points |
| Q1 2026 | 7.6% | +0.3 points |
| Q4 2025 | 8.2% | -0.6 points |
| Q3 2025 | 8% | -0.6 points |
| Q2 2025 | 6.8% | 0 points |
| Q1 2025 | 7.3% | -1.1 points |
| Q4 2024 | 8.9% | +1.3 points |
DXC 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.
DXC Free Cash Flow
| Quarter | Free cash flow | YoY |
|---|---|---|
| Q3 2026 | $143M | -61% |
| Q2 2026 | $359M | +151% |
| Q1 2026 | $169M | -29% |
| Q4 2025 | $359M | -37% |
| Q3 2025 | $365M | +137% |
| Q2 2025 | $143M | -25% |
| Q1 2025 | $238M | -1.7% |
| Q4 2024 | $568M | -15% |
DXC 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.
DXC Total Shares
| Period | Change % | Net change |
|---|---|---|
| Quarterly | -2.6% | -4.3M shares |
| 1 year | -9.6% | -17.2M shares |
| 3 years | -20% | -41.1M shares |
| 5 years | -36% | -90.4M shares |
| Available history | -37% | -94.1M shares |
DXC has the edge over AAOI on shareholder dilution, with a more favorable share count trend.
| Quarter | Spent |
|---|---|
| Q3 2026 | $61M |
| Q2 2026 | $71M |
| Q1 2026 | $61M |
| Q4 2025 | $64M |
| Q3 2025 | $76M |
| Q2 2025 | $48M |
| Q1 2025 | — |
| Q4 2024 | $12M |
DXC spent $257M buying back its own shares over the past year, up 89% 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.
DXC Net Leverage
| Quarter | Net Leverage | Status |
|---|---|---|
| Q3 2026 | 0.7x | Very low |
| Q2 2026 | 0.8x | Very low |
| Q1 2026 | 0.9x | Very low |
| Q4 2025 | 0.9x | Very low |
| Q3 2025 | 0.9x | Very low |
| Q2 2025 | 1.0x | Very low |
| Q1 2025 | 0.9x | Very low |
| Q4 2024 | 0.9x | Very low |
DXC's net debt is less than a year of its operating earnings (EBITDA).
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).
DXC Weekly Momentum
| Metric | Value | Status |
|---|---|---|
| RSI | 64.6 | Neutral |
| Stochastic | 76.3 | Neutral |
DXC's weekly RSI is 65 (neutral) and its Stochastic is 76 (neutral).
AAOI PE vs Technology Sector
AAOI has no meaningful PE right now: it lost money over the past year.
DXC PE vs Technology Sector
| Metric | DXC | Sector median | Relative |
|---|---|---|---|
| PE | 22x | 28x | 23% below |
| PE % | 63 | 35 | 28 pts above |
DXC is trading at 22x earnings, a 23% discount 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.
DXC Weekly Moving Averages
| Moving average | MA price | Relative |
|---|---|---|
| 8 week MA | $13.6 | 9.4% above |
| 20 week MA | $11.8 | 26% above |
| 50 week MA | $12.1 | 22% above |
| 100 week MA | $14.0 | 6.1% above |
| 200 week MA | $18.1 | 18% below |
DXC 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 has the edge over DXC on returns for 2026, with the stronger performance.
DXC Yearly ROI
| Year | Start price | End price | ROI |
|---|---|---|---|
| 2020 | $36.7 | $22.9 | -38% |
| 2021 | $22.9 | $32.6 | +42% |
| 2022 | $32.6 | $26.5 | -19% |
| 2023 | $26.5 | $22.9 | -14% |
| 2024 | $22.9 | $20.2 | -12% |
| 2025 | $20.2 | $15.1 | -25% |
| 2026 YTD | $15.1 | $14.9 | -1.7% |
DXC has finished four years in a row lower, and it's down 1.7% so far in 2026.