Applied Optoelectronics, Inc. (AAOI) vs Zebra Technologies Corporation (ZBRA)

Applied Optoelectronics, Inc. and Zebra Technologies Corporation are both Communication Equipment companies. Zebra Technologies Corporation is the larger, with a market value of $17.3B against $8.8B — 2.0× the size. Applied Optoelectronics, Inc. has negative trailing earnings, so its P/E is not meaningful; Zebra Technologies Corporation trades at 33.6×. Applied Optoelectronics, Inc. grew revenue faster over the last twelve months: 61.9% against 12.7%. Zebra Technologies Corporation has the higher net margin (9.22% vs −9.57%) and the higher return on invested capital (8.87% vs −2.96%). Across the 19 metrics below, Zebra Technologies Corporation leads on 12 and Applied Optoelectronics, Inc. on 7.

Valuation

Metric AAOI ZBRA Communication Equipment median
P/E n/m 33.61 33.61
P/S 13.92 3.02 2.16
P/B 4.97 5.14 2.40
Price to free cash flow n/m 19.53 25.02
EV/EBITDA n/m 18.15 13.78
EV/Sales 13.50 3.47 2.27
Earnings yield (0.77%) 2.98% (0.65%)
Free cash flow yield (7.15%) 5.12% 1.61%

Profitability

Metric AAOI ZBRA Communication Equipment median
Gross margin 28.92% 49.58% 39.47%
Operating margin (11.31%) 14.67% 2.39%
Net margin (9.57%) 9.22% (0.74%)
Free cash flow margin (99.45%) 15.46% 1.39%
Return on equity (5.45%) 15.29% (1.91%)
Return on assets (3.68%) 6.50% (0.20%)
Return on invested capital (2.96%) 8.87% 0.72%

Growth

Metric AAOI ZBRA Communication Equipment median
Revenue growth (TTM) 61.85% 12.66% 11.48%
EPS growth (last fiscal year) 85.78% (19.65%) —
Revenue growth, 5-year CAGR 14.20% 3.94% 4.92%
Net income growth, 5-year CAGR 0.00% (3.63%) 0.00%

Health

Metric AAOI ZBRA Communication Equipment median
Debt to equity 0.16 0.81 0.06
Current ratio 2.78 0.52 2.01
Net debt to EBITDA 3.09 2.56 0.67

Dividend

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

Size

Metric AAOI ZBRA Communication Equipment median
Market cap 8.78b 17.27b 563.45m

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