Hanwha Q Cells (NASDAQ:HQCL) and Applied Optoelectronics (NASDAQ:AAOI) are both small-cap oils/energy companies, but which is the better stock? We will contrast the two businesses based on the strength of their profitability, valuation, earnings, analyst recommendations, risk, institutional ownership and dividends.
Institutional and Insider Ownership
0.8% of Hanwha Q Cells shares are owned by institutional investors. Comparatively, 72.4% of Applied Optoelectronics shares are owned by institutional investors. 6.9% of Applied Optoelectronics 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.
Volatility & Risk
Hanwha Q Cells has a beta of 0.78, indicating that its share price is 22% less volatile than the S&P 500. Comparatively, Applied Optoelectronics has a beta of 2.61, indicating that its share price is 161% more volatile than the S&P 500.
This is a summary of current recommendations and price targets for Hanwha Q Cells and Applied Optoelectronics, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Hanwha Q Cells||1||0||0||0||1.00|
Hanwha Q Cells currently has a consensus target price of $8.00, indicating a potential downside of 1.60%. Applied Optoelectronics has a consensus target price of $32.86, indicating a potential upside of 36.99%. Given Applied Optoelectronics’ stronger consensus rating and higher probable upside, analysts clearly believe Applied Optoelectronics is more favorable than Hanwha Q Cells.
This table compares Hanwha Q Cells and Applied Optoelectronics’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Hanwha Q Cells||-2.62%||-11.39%||-2.34%|
Valuation and Earnings
This table compares Hanwha Q Cells and Applied Optoelectronics’ revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Hanwha Q Cells||$2.18 billion||0.31||-$12.40 million||($0.11)||-73.91|
|Applied Optoelectronics||$382.33 million||1.24||$73.95 million||$4.23||5.67|
Applied Optoelectronics has lower revenue, but higher earnings than Hanwha Q Cells. Hanwha Q Cells is trading at a lower price-to-earnings ratio than Applied Optoelectronics, indicating that it is currently the more affordable of the two stocks.
Applied Optoelectronics beats Hanwha Q Cells on 13 of the 14 factors compared between the two stocks.
Hanwha Q Cells Company Profile
Hanwha Q CELLS Co., Ltd., a solar energy company, develops, manufactures, and sells solar cells and photovoltaic (PV) modules in South Korea, the United States, Europe, Japan, Australia, the People's Republic of China, India, Turkey, and internationally. Its principal products include PV cells, PV modules, silicon ingots, and silicon wafers. The company also develops and sells solar power projects; and offers engineering, procurement, and construction, as well as operation and management services. In addition, it offers services for the development and installation of ground-mounted and commercial rooftop PV systems. Hanwha Q CELLS Co., Ltd. serves utility companies and system integrators directly, as well as through third-party distributors. The company is headquartered in Seoul, South Korea. Hanwha Q CELLS Co., Ltd. is a subsidiary of Hanwha Solar Holdings Co., Ltd.
Applied Optoelectronics Company Profile
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.
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