LEDS vs AAOI

For growth investors, SemiLEDs Corporation (LEDS) is the stronger pick with 729.

8% revenue growth year-over-year, versus 82. 8% for Applied Optoelectronics, Inc. (AAOI). Analysts rate Applied Optoelectronics, Inc. (AAOI) a "Buy" — based on 16 analyst ratings — the highest consensus in this comparison. The "better buy" depends entirely on your goals: growth investors should weight revenue trajectory, value investors should weight P/E and PEG, and income investors should weight dividend yield and streak.

Over the past 5 years, Applied Optoelectronics, Inc.

(AAOI) delivered a total return of +1978%, compared to -74. 5% for SemiLEDs Corporation (LEDS). Over 10 years, the gap is even starker: AAOI returned +1436% versus LEDS's +9. 7%. Past returns do not guarantee future results, and the stock with the higher historical return may already have its best growth priced in.

By beta (market sensitivity over 5 years), SemiLEDs Corporation (LEDS) is the lower-risk stock at 1.

91β versus Applied Optoelectronics, Inc. 's 4. 13β — meaning AAOI is approximately 116% more volatile than LEDS relative to the S&P 500. On balance sheet safety, Applied Optoelectronics, Inc. (AAOI) carries a lower debt/equity ratio of 23% versus 144% for SemiLEDs Corporation — giving it more financial flexibility in a downturn.

By revenue growth (latest reported year), SemiLEDs Corporation (LEDS) is pulling ahead at 729.

8% versus 82. 8% for Applied Optoelectronics, Inc. (AAOI). On earnings-per-share growth, the picture is similar: Applied Optoelectronics, Inc. grew EPS 85. 8% year-over-year, compared to 53. 1% for SemiLEDs Corporation. Over a 3-year CAGR, LEDS leads at 82. 7% annualised revenue growth. Higher growth typically commands a higher valuation multiple — check whether the premium P/E or P/S is justified by the growth rate using the PEG ratio.

SemiLEDs Corporation (LEDS) is the more profitable company, earning -2.

6% net margin versus -8. 4% for Applied Optoelectronics, Inc. — meaning it keeps -2. 6% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: LEDS leads at -3. 7% versus -12. 0% for AAOI. At the gross margin level — before operating expenses — AAOI leads at 30. 0%, reflecting greater pricing power or product mix advantage. Stronger margins indicate durable pricing power, lower cost of revenue, or higher mix of software/services. They are one of the clearest signs of business quality.

None of the stocks in this comparison currently pay a material dividend.

All are effectively zero-yield and should be held for capital appreciation rather than income.

For long-horizon retirement investors, Applied Optoelectronics, Inc.

(AAOI) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (+1436% 10Y return). SemiLEDs Corporation (LEDS) carries a higher beta of 1. 91 — meaning larger drawdowns in market downturns, which matters significantly when you cannot wait years for a recovery. Both have compounded well over 10 years (AAOI: +1436%, LEDS: +9. 7%), confirming both are viable long-term holds — but the lower-volatility option typically results in less emotional selling during corrections. Retirement portfolios generally favour predictability over maximum returns. Consult a financial advisor before making allocation decisions.

Both stocks operate in the Technology sector, making this a peer-level intra-sector comparison — the same macro tailwinds and headwinds will affect both.

These fundamental differences mean investors should not choose between them on a single metric — the "better stock" depends entirely on which of these characteristics aligns with your investment strategy.