Advanced Micro Devices (NASDAQ: AMD) is one of 104 publicly-traded companies in the “Semiconductors” industry, but how does it contrast to its rivals? We will compare Advanced Micro Devices to related businesses based on the strength of its profitability, risk, analyst recommendations, dividends, institutional ownership, valuation and earnings.

Profitability

This table compares Advanced Micro Devices and its rivals’ 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 -44.56% 1.34% 1.34%

Analyst Recommendations

This is a breakdown of current ratings and price targets for Advanced Micro Devices and its rivals, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Advanced Micro Devices 5 13 10 0 2.18
Advanced Micro Devices Competitors 936 4825 8836 368 2.58

Advanced Micro Devices presently has a consensus price target of $14.37, indicating a potential upside of 33.92%. As a group, “Semiconductors” companies have a potential upside of 5.80%. Given Advanced Micro Devices’ higher probable upside, equities analysts clearly believe Advanced Micro Devices is more favorable than its rivals.

Insider and Institutional Ownership

59.5% 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 company insiders. Comparatively, 6.8% of shares of all “Semiconductors” companies are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Risk and Volatility

Advanced Micro Devices has a beta of 2.47, meaning that its stock price is 147% more volatile than the S&P 500. Comparatively, Advanced Micro Devices’ rivals have a beta of 1.01, meaning that their average stock price is 1% more volatile than the S&P 500.

Earnings and Valuation

This table compares Advanced Micro Devices and its rivals revenue, earnings per share and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Advanced Micro Devices $4.27 billion -$497.00 million -119.22
Advanced Micro Devices Competitors $4.31 billion $520.00 million 31.21

Advanced Micro Devices’ rivals have higher revenue and earnings than Advanced Micro Devices. Advanced Micro Devices is trading at a lower price-to-earnings ratio than its rivals, indicating that it is currently more affordable than other companies in its industry.

Summary

Advanced Micro Devices rivals beat Advanced Micro Devices on 9 of the 12 factors compared.

About Advanced Micro Devices

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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