Quick verdict: AAOI vs LASR in 2026

Overall, nLIGHT, Inc. (LASR) holds a notable edge in this AAOI vs LASR stock comparison 2026, particularly across profitability and analyst sentiment. Applied Optoelectronics, Inc. (AAOI) demonstrates stronger revenue growth, positioning it as the growth leader with an 82.8% YoY increase. LASR, however, appears to be the value leader with less negative P/E and P/B ratios, the margin leader with superior net and EBITDA margins, and the clear analyst favourite with significant consensus upside of +5.4%. Not investment advice.

AAOI vs LASR: key metrics side by side

Full side-by-side comparison of AAOI and LASR across valuation, profitability, growth and analyst sentiment. Data updated 2026-05-08.

AAOI vs LASR valuation comparison

When assessing AAOI vs LASR valuation, both companies present challenges given their negative P/E ratios, indicating current unprofitability. Applied Optoelectronics, Inc. (AAOI) has a P/E of -276.22x, reflecting substantial losses relative to its market capitalization. In comparison, nLIGHT, Inc. (LASR) stands at a P/E of -243.21x. Although both ratios are negative, LASR’s P/E is less negative, suggesting a slightly better earnings outlook from a valuation perspective, or at least a lesser degree of current financial drag relative to its share price.

Further examining their balance sheet valuation, LASR appears to be the more attractively priced stock based on its book value. nLIGHT, Inc. boasts a P/B ratio of 8.35x, which is lower than AAOI’s P/B ratio of 10.82x. This implies that LASR’s assets are valued more modestly by the market, potentially offering a better entry point for investors focused on asset-based valuation. Both companies also show negative discounted cash flow (DCF) upsides, with AAOI at -122.9% and LASR at -109.1%. While neither indicates intrinsic value upside currently, LASR’s less severely negative DCF further reinforces its relative valuation advantage compared to AAOI.

AAOI vs LASR growth comparison

In the AAOI vs LASR growth comparison, Applied Optoelectronics, Inc. (AAOI) clearly leads with impressive top-line expansion. AAOI reported a year-over-year revenue growth of 82.8%, significantly outpacing nLIGHT, Inc.’s (LASR) growth rate of 31.6%. This robust performance positions AAOI as the company with stronger momentum in revenue generation as of 2026-05-08, suggesting higher demand for its products or successful market expansion initiatives. Such high growth rates, especially in the technology sector, can attract investors focused on long-term market share capture and future profitability.

Despite AAOI’s superior revenue growth, it’s important for investors to consider profitability metrics alongside growth to understand the quality of this expansion. While AAOI is growing revenue faster, its net margin is -8.55% and its EBITDA margin is -5.21%. In contrast, LASR, with its more modest 31.6% revenue growth, exhibits better profitability with a net margin of -5.08% and an EBITDA margin of -1.13%. This indicates that while AAOI is expanding its top line at a more rapid pace, LASR is more efficient in its operations, even if both are currently unprofitable. Investors should weigh whether AAOI’s higher growth can eventually translate into significantly improved margins, or if LASR’s more controlled growth with better margins presents a more sustainable path to profitability.

AAOI vs LASR profitability

When evaluating AAOI vs LASR profitability, nLIGHT, Inc. (LASR) generally presents a stronger financial picture, despite both companies currently operating at a loss. LASR’s net margin of -5.08% is considerably better than AAOI’s net margin of -8.55%. This indicates that nLIGHT is losing less money on each dollar of revenue compared to Applied Optoelectronics. Similarly, LASR’s EBITDA margin of -1.13% significantly outperforms AAOI’s -5.21%, highlighting greater efficiency in managing core operating expenses.

Further examining their cash generation capabilities, LASR holds a clear advantage in terms of free cash flow. nLIGHT, Inc. boasts a positive free cash flow (FCF) yield of 0.6%, indicating that it is generating cash from its operations after capital expenditures. Applied Optoelectronics, Inc. (AAOI), on the other hand, reports a negative FCF yield of -1.92%, suggesting it is currently consuming cash rather than generating it. Both companies show ‘N/A%’ for Return on Equity (ROE), meaning this metric cannot be used for direct comparison. Therefore, for investors prioritizing cash generation and operational efficiency, LASR appears to be the more financially sound choice at this moment.

Analyst ratings: AAOI vs LASR

Analyst sentiment clearly favors nLIGHT, Inc. (LASR) in this AAOI vs LASR comparison. Of the 13 analysts covering LASR, an overwhelming 92.3% have issued a “Buy” rating, reflecting strong confidence in the company’s future prospects. Their consensus price target for LASR is $69.75, representing a potential upside of +5.4% from its current price of $66.19. This suggests that analysts, on average, believe LASR’s stock has room to appreciate in the near to medium term, indicating a positive outlook for the company’s performance.

Conversely, Applied Optoelectronics, Inc. (AAOI) receives a less enthusiastic endorsement from the analyst community. Out of 16 analysts, only 43.8% recommend “Buy,” with a significant portion likely holding “Hold” or “Sell” ratings, even though the overall consensus remains “Buy.” More concerning is their consensus price target for AAOI, which stands at $46. This target implies a substantial downside of -70.8% from its current price of $157.55. This stark difference in target price upside and buy rating percentage indicates a clear preference for LASR among analysts, suggesting they perceive greater risk and less potential for appreciation in AAOI.

Should I buy AAOI or LASR stock in 2026?

Deciding whether should I buy AAOI or LASR stock in 2026 depends heavily on an investor’s specific objectives and risk tolerance. For growth-oriented investors primarily focused on top-line expansion, Applied Optoelectronics, Inc. (AAOI) might appear more appealing due to its significantly higher revenue growth of 82.8% year-over-year compared to LASR’s 31.6%. This aggressive growth could signal promising opportunities in a rapidly evolving market, potentially leading to substantial long-term gains if the company can effectively translate this growth into future profitability and positive cash flows.

For value investors, or those prioritizing operational efficiency and more favorable valuation metrics, nLIGHT, Inc. (LASR) presents a more compelling case. LASR’s P/B ratio of 8.35x is lower than AAOI’s 10.82x, and its P/E ratio of -243.21x is less negative than AAOI’s -276.22x, suggesting a relatively better valuation amidst unprofitability. Furthermore, LASR demonstrates superior profitability with better net and EBITDA margins and a positive FCF yield of 0.6%, contrasting with AAOI’s negative FCF yield of -1.92%. These factors imply LASR is managing its finances more effectively even while both companies are currently unprofitable, which could lead to a more stable investment.

For income investors, neither AAOI nor LASR are suitable options, as both companies have a dividend yield of 0%. Both are growth-focused technology companies that are currently reinvesting any potential earnings back into the business rather than distributing them to shareholders. Therefore, investors seeking regular dividend income should look elsewhere. Ultimately, the choice between AAOI and LASR in 2026 comes down to a trade-off between AAOI’s higher growth potential and LASR’s stronger financial discipline and more favorable analyst outlook. This is not investment advice.

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