Applied Optoelectronics, Inc. (AAOI) vs Viavi Solutions Inc. (VIAV)

Applied Optoelectronics, Inc. and Viavi Solutions Inc. are both Communication Equipment companies. Applied Optoelectronics, Inc. and Viavi Solutions Inc. are of similar size ($9.3B and $8.8B). Applied Optoelectronics, Inc. grew revenue faster over the last twelve months: 61.9% against 40.0%. Viavi Solutions Inc. has the higher net margin (−2.00% vs −9.57%) and the higher return on invested capital (4.58% vs −2.96%). Across the 18 metrics below, Viavi Solutions Inc. leads on 12 and Applied Optoelectronics, Inc. on 6.

Valuation

Metric AAOI VIAV Communication Equipment median
P/E n/m n/m 33.61
P/S 13.92 6.15 2.16
P/B 4.97 6.45 2.40
Price to free cash flow n/m 56.11 25.02
EV/EBITDA n/m 57.93 13.78
EV/Sales 13.50 6.14 2.27
Earnings yield (0.77%) (0.34%) (0.65%)
Free cash flow yield (7.15%) 1.78% 1.61%

Profitability

Metric AAOI VIAV Communication Equipment median
Gross margin 28.92% 57.66% 39.47%
Operating margin (11.31%) 6.92% 2.39%
Net margin (9.57%) (2.00%) (0.74%)
Free cash flow margin (99.45%) 10.96% 1.39%
Return on equity (5.45%) (2.73%) (1.91%)
Return on assets (3.68%) (1.29%) (0.20%)
Return on invested capital (2.96%) 4.58% 0.72%

Growth

Metric AAOI VIAV Communication Equipment median
Revenue growth (TTM) 61.85% 40.03% 11.48%
EPS growth (last fiscal year) 85.78% (186.67%) —
Revenue growth, 5-year CAGR 14.20% 4.84% 4.92%
Net income growth, 5-year CAGR 0.00% 0.00% 0.00%

Health

Metric AAOI VIAV Communication Equipment median
Debt to equity 0.16 0.44 0.06
Current ratio 2.78 1.85 2.01
Net debt to EBITDA 3.09 (0.07) 0.67

Dividend

Metric AAOI VIAV Communication Equipment median
Dividend yield — — 2.63%
Payout ratio 0.00 0.00 0.00

Size

Metric AAOI VIAV Communication Equipment median
Market cap 8.78b 9.30b 563.45m

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