No connection

Search Results

AAOI vs MSFT

AAOI
Applied Optoelectronics, Inc.
BEARISH
Price
$96.81
Market Cap
$7.28B
Sector
Technology
AI Confidence
85%
MSFT
Microsoft Corporation
BULLISH
Price
$370.17
Market Cap
$2.75T
Sector
Technology
AI Confidence
40%

Valuation

P/E Ratio
AAOI
--
MSFT
23.18
Forward P/E
AAOI
30.28
MSFT
19.64
P/B Ratio
AAOI
9.89
MSFT
7.04
P/S Ratio
AAOI
15.97
MSFT
9.01
EV/EBITDA
AAOI
-272.13
MSFT
15.88

Profitability

Gross Margin
AAOI
30.04%
MSFT
68.59%
Operating Margin
AAOI
-8.57%
MSFT
47.09%
Profit Margin
AAOI
-8.39%
MSFT
39.04%
ROE
AAOI
-7.94%
MSFT
34.39%
ROA
AAOI
-3.98%
MSFT
14.86%

Growth

Revenue Growth
AAOI
33.9%
MSFT
16.7%
Earnings Growth
AAOI
--
MSFT
59.8%

Financial Health

Debt/Equity
AAOI
0.34
MSFT
0.32
Current Ratio
AAOI
2.63
MSFT
1.39
Quick Ratio
AAOI
1.75
MSFT
1.24

Dividends

Dividend Yield
AAOI
--
MSFT
1.01%
Payout Ratio
AAOI
0.0%
MSFT
21.28%

AI Verdict

AAOI BEARISH

AAOI's deterministic health scores are severely compromised: the Piotroski F-Score of 0/9 signals extreme financial distress, with no positive indicators in profitability, leverage, or cash flow. The Altman Z-Score is unavailable, but the company's negative ROE (-7.94%), negative profit margins (-8.39%), and persistent losses despite 33.9% revenue growth indicate deep operational inefficiency. While the stock has delivered extraordinary price appreciation (510% in 1Y), this is not supported by fundamentals, and the valuation (P/E 30.28, Price/Sales 15.97) reflects a premium driven by speculative momentum rather than intrinsic value. Insider selling of $23.77M in the last 6 months further undermines confidence, signaling potential misalignment with public investors.

Strengths
Strong revenue growth of 33.9% YoY, indicating market demand and expansion in core business
High gross margin of 30.04% suggests pricing power and efficient production processes
Solid liquidity with current ratio of 2.63 and quick ratio of 1.75, indicating short-term financial resilience
Risks
Piotroski F-Score of 0/9 indicates severe financial distress, with no positive signals across profitability, leverage, or cash flow
Negative ROE (-7.94%), ROA (-3.98%), and operating margin (-8.57%) reflect persistent unprofitability despite revenue growth
Insider selling of $23.77M in 6 months with no buys signals potential insider pessimism and lack of confidence
MSFT BULLISH

MSFT shows bullish fundamentals based on deterministic rules. Financial strength is strong (F-Score 7/9). Key strengths include strong valuation and growth metrics.

Strengths
Strong profitability (39.0% margin)
Strong financial trend (Piotroski F-Score: 7/9)
Strong revenue growth of 16.7%
Risks
Premium vs Graham Number ($137.5)

Compare Another Pair

AAOI vs MSFT: Head-to-Head Comparison

This page compares Applied Optoelectronics, Inc. (AAOI) and Microsoft Corporation (MSFT) across key fundamental metrics including valuation ratios, profitability margins, growth rates, financial health indicators, and dividend metrics. Each metric highlights the better-performing stock so you can quickly identify relative strengths and weaknesses.

Our AI engine independently analyzes each company's financials, competitive position, and market conditions to produce a verdict (Bullish, Neutral, or Bearish) along with key strengths and risks. Use this comparison alongside your own research to make informed investment decisions.

Home
Terminal
AI
Markets
Profile