Veea (NASDAQ:VEEA) vs. Applied Optoelectronics (NASDAQ:AAOI) Financial Contrast

Applied Optoelectronics (NASDAQ:AAOI) and Veea (NASDAQ:VEEA) are both technology companies, but which is the better investment? We will compare the two businesses based on the strength of their profitability, earnings, dividends, risk, valuation, analyst recommendations and institutional ownership.

Valuation & Earnings

This table compares Applied Optoelectronics and Veea”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Applied Optoelectronics	$455.71 million	19.71	-$38.23 million	($0.78)	-136.19
Veea	$220,000.00	29.15	-$6.66 million	($0.26)	-0.40

Veea has lower revenue, but higher earnings than Applied Optoelectronics. Applied Optoelectronics is trading at a lower price-to-earnings ratio than Veea, indicating that it is currently the more affordable of the two stocks.

Risk & Volatility

Applied Optoelectronics has a beta of 3.76, meaning that its share price is 276% more volatile than the S&P 500. Comparatively, Veea has a beta of 0.35, meaning that its share price is 65% less volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Applied Optoelectronics	-9.57%	-1.98%	-1.34%
Veea	N/A	N/A	-41.65%

Analyst Ratings

This is a summary of recent ratings and recommmendations for Applied Optoelectronics and Veea, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Applied Optoelectronics	1	2	3	0	2.33
Veea	1	0	0	0	1.00

Applied Optoelectronics presently has a consensus target price of $139.40, suggesting a potential upside of 31.22%. Given Applied Optoelectronics’ stronger consensus rating and higher probable upside, analysts clearly believe Applied Optoelectronics is more favorable than Veea.

Institutional & Insider Ownership

61.7% of Applied Optoelectronics shares are held by institutional investors. Comparatively, 25.9% of Veea shares are held by institutional investors. 3.8% of Applied Optoelectronics shares are held by insiders. Comparatively, 60.8% of Veea shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

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 Veea

Veea Inc. provides computing, multiaccess multiprotocol communications, edge storage, and cybersecurity solutions. The company offers multiaccess edge computing (MEC) platform that redefines connectivity and computing at the edge by integrating functions of servers, network attached storage (NAS), routers, firewalls, Wi-Fi Access Points, IoT gateways, and 4G and 5G connections; and Veea Edge Platform enables direct connections from the optical fiber, cellular, and satellite networks. It also provides VeeaHub STAX, an edge computing product integrated with wireless access, including Wi-Fi 6; VeeaHub that offers connectivity options for pro indoor smart edge applications; and VeeaHub Outdoor that integrates with wireless connectivity for smart edge applications in outdoor and industrial environments. The company also offers TROLLEE, a smart shopping cart platform; the VeeaHub toolkit; and Veea AdEdge, an advertising platform. Veea Inc. was founded in 2014 and is headquartered in New York, New York.