Analog Devices, Inc. vs Applied Optoelectronics, Inc.
ADI wins the Tale of the Tape 7–2.
🏆 Tale of the Tape
Green = winner in each category. Higher is better except P/E (lower = cheaper).
Rolling Correlation
Moderately correlated — some diversification benefit from holding both.
Fundamentals
| Metric | ADI | AAOI |
|---|---|---|
| Market Cap | $201.6B | $12.7B |
| P/E Ratio | 61.8x | — |
| Forward P/E | 28.0x | 33.2x |
| P/B | 5.97x | 11.31x |
| Dividend Yield | 1.06% | — |
| Beta | 1.19 | 3.76 |
Quantitative Metrics
| Metric | ADI | AAOI |
|---|---|---|
| DCF Fair Value | $118.02 | — |
| DCF Upside | -66.3% | — |
| Piotroski F | 8/9 | 4/9 |
| Altman Z | 8.08 | — |
| Beneish M | -2.73 | -0.61 |
| FCF Yield | 2.42% | — |
| Net Debt/EBITDA | 1.1x | — |
| ROIC | 5.3% | -3.8% |
| WACC | 11.0% | — |
| ROIC – WACC | -5.6pp | — |
| Gross Margin | 61.5% | 30.0% |
| Net Margin | 20.6% | -8.4% |
| Rev Growth YoY | 16.9% | 82.8% |
| Sharpe (1Y) | 1.91 | 2.40 |
| Max Drawdown 3Y | — | -77.2% |
| FCF Payout Ratio | 45% | — |
ADI Price
AAOI Price
ETF Exposure
ADI found in:
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Quant metrics computed from financial statements and 1,200+ trading days. Correlation is Pearson coefficient on daily log returns. Not investment advice.
ADI vs AAOI: Head-to-Head Analysis
Analog Devices, Inc. (ADI) and Applied Optoelectronics, Inc. (AAOI) represent two companies in the Technology sector. In our quantitative Tale of the Tape scoring, ADI leads 7–2 across nine fundamental and risk metrics including profitability, valuation, capital efficiency, and financial health.
In terms of capital efficiency, ADI generates a return on invested capital (ROIC) of 5.3% compared to AAOI's -3.8%. This suggests ADI is more effective at deploying capital to generate shareholder returns.
The 252-day rolling correlation between ADI and AAOI is 0.341, indicating moderate co-movement, with some diversification value from holding both in a portfolio context.
ADI appears in 34 ETFs tracked by SecuritiesDB, while AAOI appears in 5 ETFs. Investors holding broad-market ETFs may already have indirect exposure to both stocks.
Frequently Asked Questions
Which stock is the better investment, ADI or AAOI?
Our quantitative analysis compares ADI and AAOI across nine fundamental dimensions. ADI wins the Tale of the Tape 7–2. However, stock selection depends on your individual risk tolerance, time horizon, and portfolio context. These metrics are computed from SEC filings and market data — they are not investment recommendations.
Are ADI and AAOI correlated?
The 252-day correlation between ADI and AAOI is 0.341. They show moderate correlation — partially diversifying.
How is the Tale of the Tape scored?
The Tale of the Tape compares both stocks across nine categories: profitability (net margin), valuation (P/E), efficiency (ROIC), health (Piotroski F-Score), safety (Altman Z-Score), growth (revenue YoY), risk (Sharpe ratio), leverage (debt-to-equity), and cash generation (FCF yield). The stock that wins more categories takes the overall score. Lower P/E and lower debt-to-equity count as wins.