Applied Optoelectronics (NASDAQ:AAOI) & Ameri (NASDAQ:AMRH) Head to Head Contrast

Applied Optoelectronics (NASDAQ:AAOI) and Ameri (NASDAQ:AMRH) are both small-cap computer and technology companies, but which is the superior business? We will contrast the two companies based on the strength of their earnings, analyst recommendations, risk, valuation, institutional ownership, profitability and dividends.

Risk and Volatility

Applied Optoelectronics has a beta of 2.12, meaning that its stock price is 112% more volatile than the S&P 500. Comparatively, Ameri has a beta of 1.38, meaning that its stock price is 38% more volatile than the S&P 500.

Earnings and Valuation

This table compares Applied Optoelectronics and Ameri’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Applied Optoelectronics $267.46 million 0.90 -$2.15 million $0.53 22.45
Ameri $43.00 million 0.08 -$16.90 million N/A N/A

Applied Optoelectronics has higher revenue and earnings than Ameri.

Analyst Recommendations

This is a summary of recent ratings for Applied Optoelectronics and Ameri, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Applied Optoelectronics 2 4 1 0 1.86
Ameri 0 0 0 0 N/A

Applied Optoelectronics presently has a consensus price target of $11.50, indicating a potential downside of 3.36%. Given Applied Optoelectronics’ higher probable upside, research analysts clearly believe Applied Optoelectronics is more favorable than Ameri.

Insider & Institutional Ownership

61.5% of Applied Optoelectronics shares are owned by institutional investors. Comparatively, 50.4% of Ameri shares are owned by institutional investors. 6.6% of Applied Optoelectronics shares are owned by company insiders. Comparatively, 12.2% of Ameri shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Profitability

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

Net Margins Return on Equity Return on Assets
Applied Optoelectronics -19.57% -8.12% -5.31%
Ameri -55.53% -119.32% -47.21%

Summary

Applied Optoelectronics beats Ameri on 10 of the 12 factors compared between the two stocks.

About Applied Optoelectronics

Applied Optoelectronics, Inc. designs, manufactures, and sells various fiber-optic networking products worldwide. It offers optical modules, lasers, transmitters and transceivers, and turn-key equipment, as well as headend, node, and distribution equipment. The company sells its products to Internet data center operators, cable television and telecommunications equipment manufacturers, and Internet service providers through its direct and indirect sales channels. Applied Optoelectronics, Inc. was founded in 1997 and is headquartered in Sugar Land, Texas.

About Ameri

Ameri Holdings, Inc. specializes in delivering SAP cloud, digital and enterprise services to clients worldwide. Its services center around SAP and include technology consulting, business intelligence, cloud services, application development/integration and maintenance, implementation services, infrastructure services, and independent validation services, all of which can be delivered as a set of managed services or on an on-demand service basis, or a combination of both. The company was founded by Srinidhi Devanur in February 1994 and is headquartered in Suwanee, GA.

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