Advanced Micro Devices (NASDAQ: AMD) and AXT (NASDAQ:AXTI) are both technology companies, but which is the superior investment? We will contrast the two businesses based on the strength of their analyst recommendations, dividends, institutional ownership, profitability, risk, valuation and earnings.
Insider and Institutional Ownership
60.1% of Advanced Micro Devices shares are owned by institutional investors. Comparatively, 60.4% of AXT shares are owned by institutional investors. 1.6% of Advanced Micro Devices shares are owned by company insiders. Comparatively, 6.9% of AXT shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.
This is a breakdown of recent recommendations and price targets for Advanced Micro Devices and AXT, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Advanced Micro Devices||4||14||10||0||2.21|
Advanced Micro Devices presently has a consensus price target of $14.39, indicating a potential upside of 36.66%. AXT has a consensus price target of $9.94, indicating a potential upside of 14.22%. Given Advanced Micro Devices’ higher probable upside, equities analysts plainly believe Advanced Micro Devices is more favorable than AXT.
This table compares Advanced Micro Devices and AXT’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Advanced Micro Devices||4.44%||60.79%||8.42%|
Risk and Volatility
Advanced Micro Devices has a beta of 2.46, meaning that its stock price is 146% more volatile than the S&P 500. Comparatively, AXT has a beta of 1.11, meaning that its stock price is 11% more volatile than the S&P 500.
Valuation and Earnings
This table compares Advanced Micro Devices and AXT’s revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Advanced Micro Devices||$4.27 billion||2.38||-$497.00 million||($0.08)||-131.63|
|AXT||$81.35 million||4.16||$5.63 million||$0.24||36.25|
AXT has lower revenue, but higher earnings than Advanced Micro Devices. Advanced Micro Devices is trading at a lower price-to-earnings ratio than AXT, indicating that it is currently the more affordable of the two stocks.
AXT beats Advanced Micro Devices on 8 of the 14 factors compared between the two stocks.
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.
AXT Company Profile
AXT, Inc. (AXT) is a developer and producer of compound and single element semiconductor substrates, also known as wafers. The dominant substrates used in producing semiconductor chips and other electronic circuits are made from silicon. The Company is engaged in the design, development, manufacture and distribution of compound semiconductor substrates and sale of materials. The Company provides alternative or specialty materials in the form of substrates or wafers, including compound and single element substrates. Its compound substrates combine indium with phosphorous (InP) or gallium with arsenic (GaAs). Its single element substrates are made from germanium (Ge). The Company uses its Vertical Gradient Freeze (VGF) technique for growing single crystal Indium Phosphide (InP), Gallium Arsenide (GaAs) and Germanium (Ge) ingots used to produce wafers for diverse electronic and optoelectronic device and circuit applications.