Advanced Energy Industries (NASDAQ: AEIS) and Intel Corporation (NASDAQ:INTC) are both mid-cap computer and technology companies, but which is the superior investment? We will compare the two businesses based on the strength of their earnings, risk, institutional ownership, profitability, analyst recommendations, valuation and dividends.

Dividends

Intel Corporation pays an annual dividend of $1.09 per share and has a dividend yield of 2.5%. Advanced Energy Industries does not pay a dividend. Intel Corporation pays out 38.1% of its earnings in the form of a dividend. Intel Corporation has increased its dividend for 2 consecutive years.

Volatility and Risk

Advanced Energy Industries has a beta of 1.38, indicating that its share price is 38% more volatile than the S&P 500. Comparatively, Intel Corporation has a beta of 1.07, indicating that its share price is 7% more volatile than the S&P 500.

Profitability

This table compares Advanced Energy Industries and Intel Corporation’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Advanced Energy Industries 27.42% 36.19% 25.13%
Intel Corporation 22.31% 22.65% 12.91%

Valuation and Earnings

This table compares Advanced Energy Industries and Intel Corporation’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Advanced Energy Industries $577.12 million 6.48 $172.08 million $3.94 23.77
Intel Corporation $61.71 billion 3.38 $24.70 billion $2.86 15.51

Intel Corporation has higher revenue and earnings than Advanced Energy Industries. Intel Corporation is trading at a lower price-to-earnings ratio than Advanced Energy Industries, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a summary of current ratings and recommmendations for Advanced Energy Industries and Intel Corporation, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Advanced Energy Industries 0 3 2 0 2.40
Intel Corporation 4 12 26 0 2.52

Advanced Energy Industries currently has a consensus price target of $72.00, indicating a potential downside of 23.11%. Intel Corporation has a consensus price target of $42.70, indicating a potential downside of 3.77%. Given Intel Corporation’s stronger consensus rating and higher possible upside, analysts plainly believe Intel Corporation is more favorable than Advanced Energy Industries.

Institutional and Insider Ownership

91.9% of Advanced Energy Industries shares are owned by institutional investors. Comparatively, 67.1% of Intel Corporation shares are owned by institutional investors. 1.1% of Advanced Energy Industries shares are owned by insiders. Comparatively, 0.1% of Intel Corporation shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Summary

Advanced Energy Industries beats Intel Corporation on 10 of the 17 factors compared between the two stocks.

Advanced Energy Industries Company Profile

Advanced Energy Industries, Inc. is a provider of engineered, precision power conversion, measurement and control solutions. The Company is engaged in designing, manufacturing, selling and supporting its power conversion products and solutions that transform power into various forms in various applications ranging from manufacturing and industrial processes to instrumentation, and test and measurement. It also provides repair and maintenance services for all of its products. Its process power systems include direct current (DC), pulsed DC, low frequency, high voltage, and radio frequency (RF) power supplies, matching networks, remote plasma sources for reactive gas applications and RF instrumentation. These power conversion systems refine, modify and control the raw electrical power from a utility and convert it into power that may be customized and is predictable and repeatable. Its power control modules and thermal instrumentation products are used in the semiconductor industry.

Intel Corporation Company Profile

Intel Corporation is engaged in designing and manufacturing products and technologies, such as the cloud. The Company’s segments are Client Computing Group (CCG), Data Center Group (DCG), Internet of Things Group (IOTG), Non-Volatile Memory Solutions Group (NSG), Intel Security Group (ISecG), Programmable Solutions Group (PSG), All Other and New Technology Group (NTG). It delivers computer, networking and communications platforms to a set of customers, including original equipment manufacturers (OEMs), original design manufacturers (ODMs), cloud and communications service providers, as well as industrial, communications and automotive equipment manufacturers. It offers platforms to integrate various components and technologies, including a microprocessor and chipset, a stand-alone System-on-Chip (SoC), or a multichip package. The CCG operating segment includes platforms that integrates in notebook, two in one systems, desktop computers for consumers and businesses, tablets, and phones.

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