Head-To-Head Comparison: Applied Optoelectronics (NASDAQ:AAOI) versus China Sunergy (OTCMKTS:CSUNY)

Applied Optoelectronics (NASDAQ:AAOI) and China Sunergy (OTCMKTS:CSUNY) are both computer and technology companies, but which is the better stock? We will contrast the two companies based on the strength of their profitability, valuation, risk, analyst recommendations, institutional ownership, earnings and dividends.

Institutional and Insider Ownership

61.7% of Applied Optoelectronics shares are held by institutional investors. 5.4% of Applied Optoelectronics shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Valuation and Earnings

This table compares Applied Optoelectronics and China Sunergy”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Applied Optoelectronics	$209.55 million	8.44	-$56.05 million	($2.06)	-18.32
China Sunergy	N/A	N/A	N/A	N/A	N/A

China Sunergy has lower revenue, but higher earnings than Applied Optoelectronics.

Volatility and Risk

Applied Optoelectronics has a beta of 2.37, suggesting that its stock price is 137% more volatile than the S&P 500. Comparatively, China Sunergy has a beta of 3.78, suggesting that its stock price is 278% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of current ratings and target prices for Applied Optoelectronics and China Sunergy, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Applied Optoelectronics	1	1	3	0	2.40
China Sunergy	0	0	0	0	0.00

Applied Optoelectronics presently has a consensus price target of $29.20, suggesting a potential downside of 22.63%. Given Applied Optoelectronics’ stronger consensus rating and higher probable upside, equities research analysts plainly believe Applied Optoelectronics is more favorable than China Sunergy.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Applied Optoelectronics	-38.61%	-22.36%	-12.08%
China Sunergy	N/A	N/A	N/A

Summary

Applied Optoelectronics beats China Sunergy on 6 of the 10 factors compared between the two stocks.

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 China Sunergy

China Sunergy Co., Ltd., together with its subsidiaries, designs, develops, manufactures, and markets solar cells and modules in the People's Republic of China and internationally. The company offers monocrystalline and multicrystalline silicon solar cells; and standard P-type solar cells, HP solar cells, and emitter cells, as well as solar modules for use in a range of residential, commercial, industrial, and other solar power generation systems. It also invests in, develops, and operates solar power projects. The company sells its products to system integrators, solar power project developers, and solar power product distributors under the CSUN brand name, as well as on an original equipment manufacturing basis. China Sunergy Co., Ltd. was founded in 2004 and is headquartered in Nanjing, the People's Republic of China.