Critical Contrast: Advanced Micro Devices (AMD) and Semiconductor Manufacturing International (SMI)

Advanced Micro Devices (NASDAQ: AMD) and Semiconductor Manufacturing International (NYSE:SMI) 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 institutional ownership, dividends, earnings, risk, valuation, profitability and analyst recommendations.

Earnings & Valuation

This table compares Advanced Micro Devices and Semiconductor Manufacturing International’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Advanced Micro Devices $4.27 billion 2.29 -$497.00 million ($0.09) -112.56
Semiconductor Manufacturing International $2.91 billion 2.25 $376.63 million $0.25 28.16

Semiconductor Manufacturing International has lower revenue, but higher earnings than Advanced Micro Devices. Advanced Micro Devices is trading at a lower price-to-earnings ratio than Semiconductor Manufacturing International, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a breakdown of current ratings for Advanced Micro Devices and Semiconductor Manufacturing International, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Advanced Micro Devices 5 13 10 0 2.18
Semiconductor Manufacturing International 7 4 1 0 1.50

Advanced Micro Devices currently has a consensus target price of $14.37, indicating a potential upside of 41.85%. Given Advanced Micro Devices’ stronger consensus rating and higher possible upside, equities research analysts clearly believe Advanced Micro Devices is more favorable than Semiconductor Manufacturing International.

Risk & Volatility

Advanced Micro Devices has a beta of 2.46, suggesting that its stock price is 146% more volatile than the S&P 500. Comparatively, Semiconductor Manufacturing International has a beta of 0.39, suggesting that its stock price is 61% less volatile than the S&P 500.

Insider & Institutional Ownership

60.1% of Advanced Micro Devices shares are owned by institutional investors. Comparatively, 0.7% of Semiconductor Manufacturing International shares are owned by institutional investors. 1.6% of Advanced Micro Devices 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.

Profitability

This table compares Advanced Micro Devices and Semiconductor Manufacturing International’s 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%
Semiconductor Manufacturing International 7.54% 4.06% 2.24%

Summary

Advanced Micro Devices beats Semiconductor Manufacturing International on 8 of the 13 factors compared between the two stocks.

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.

About Semiconductor Manufacturing International

Semiconductor Manufacturing International Corporation is an investment holding company principally engaged in the computer-aided design, manufacture, packaging and trading of integrated circuits (IC), as well as the provision of other semiconductor services. The Company is also involved in the design and manufacture of semiconductor masks. The Company’s main products are various types of wafers. The Company distributes its products in domestic market and to overseas markets, such as the Europe and the United States.

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