Critical Comparison: Advanced Micro Devices (AMD) vs. The Competition
Advanced Micro Devices (NASDAQ: AMD) is one of 113 public companies in the “Semiconductors” industry, but how does it compare to its peers? We will compare Advanced Micro Devices to related companies based on the strength of its risk, dividends, valuation, earnings, analyst recommendations, profitability and institutional ownership.
This table compares Advanced Micro Devices and its peers’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Advanced Micro Devices||-1.39%||-4.99%||-0.65%|
|Advanced Micro Devices Competitors||-46.17%||1.17%||0.88%|
Risk & Volatility
Advanced Micro Devices has a beta of 2.49, meaning that its share price is 149% more volatile than the S&P 500. Comparatively, Advanced Micro Devices’ peers have a beta of 0.97, meaning that their average share price is 3% less volatile than the S&P 500.
This is a breakdown of current recommendations for Advanced Micro Devices and its peers, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Advanced Micro Devices||6||12||10||0||2.14|
|Advanced Micro Devices Competitors||929||4884||8802||367||2.57|
Advanced Micro Devices presently has a consensus target price of $14.75, indicating a potential upside of 32.68%. As a group, “Semiconductors” companies have a potential upside of 3.43%. Given Advanced Micro Devices’ higher possible upside, equities research analysts clearly believe Advanced Micro Devices is more favorable than its peers.
Insider and Institutional Ownership
59.1% of Advanced Micro Devices shares are held by institutional investors. Comparatively, 65.2% of shares of all “Semiconductors” companies are held by institutional investors. 1.6% of Advanced Micro Devices shares are held by insiders. Comparatively, 6.7% of shares of all “Semiconductors” companies are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.
Earnings and Valuation
This table compares Advanced Micro Devices and its peers revenue, earnings per share and valuation.
|Gross Revenue||NetIncome||Price/Earnings Ratio|
|Advanced Micro Devices||$4.27 billion||-$497.00 million||-123.56|
|Advanced Micro Devices Competitors||$4.27 billion||$517.81 million||18.15|
Advanced Micro Devices has higher revenue, but lower earnings than its peers. Advanced Micro Devices is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.
Advanced Micro Devices peers beat Advanced Micro Devices on 8 of the 12 factors compared.
Advanced Micro Devices Company Profile
Advanced Micro Devices, Inc. is a global semiconductor company. The Company is engaged in offering x86 microprocessors, as standalone devices or as incorporated into an accelerated processing unit (APU), chipsets, discrete graphics processing units (GPUs) and professional graphics, and server and embedded processors and semi-custom System-on-Chip (SoC) products and technology for game consoles. The Company’s segments include the Computing and Graphics segment, and the Enterprise, Embedded and Semi-Custom segment. The Computing and Graphics segment primarily includes desktop and notebook processors and chipsets, discrete GPUs and professional graphics. The Enterprise, Embedded and Semi-Custom segment primarily includes server and embedded processors, semi-custom SoC products, development services, technology for game consoles and licensing portions of its intellectual property portfolio.
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