Advanced Micro Devices (NASDAQ: AMD) and Alliance Fiber Optic Products (NASDAQ:AFOP) are both technology companies, but which is the better business? We will contrast the two companies based on the strength of their earnings, profitability, analyst recommendations, institutional ownership, dividends, valuation and risk.
This table compares Advanced Micro Devices and Alliance Fiber Optic Products’ 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%|
|Alliance Fiber Optic Products||-4.29%||-3.41%||-2.68%|
Advanced Micro Devices has a beta of 2.47, meaning that its share price is 147% more volatile than the S&P 500. Comparatively, Alliance Fiber Optic Products has a beta of 0.87, meaning that its share price is 13% less volatile than the S&P 500.
Institutional and Insider Ownership
60.1% of Advanced Micro Devices shares are held by institutional investors. 1.6% of Advanced Micro Devices shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.
Earnings and Valuation
This table compares Advanced Micro Devices and Alliance Fiber Optic Products’ gross 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||2.71||-$497.00 million||($0.08)||-150.25|
|Alliance Fiber Optic Products||N/A||N/A||N/A||$0.49||37.78|
Alliance Fiber Optic Products has lower revenue, but higher earnings than Advanced Micro Devices. Advanced Micro Devices is trading at a lower price-to-earnings ratio than Alliance Fiber Optic Products, indicating that it is currently the more affordable of the two stocks.
This is a summary of current ratings and recommmendations for Advanced Micro Devices and Alliance Fiber Optic Products, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Advanced Micro Devices||4||14||10||0||2.21|
|Alliance Fiber Optic Products||0||0||0||0||N/A|
Advanced Micro Devices currently has a consensus price target of $14.75, indicating a potential upside of 22.70%. Given Advanced Micro Devices’ higher possible upside, equities analysts clearly believe Advanced Micro Devices is more favorable than Alliance Fiber Optic Products.
Advanced Micro Devices beats Alliance Fiber Optic Products on 8 of the 11 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 Alliance Fiber Optic Products
Alliance Fiber Optic Products, Inc. (AFOP) designs, manufactures and markets a range of fiber optic components and integrated modules. The Company offers a range of products, including interconnect devices, which are used to connect optical fibers and components; couplers and splitters, which are used to divide and combine optical power, and dense wavelength division multiplexing (DWDM) devices, which are used to separate and combine multiple specific wavelengths. Its connectivity product family provides a line of optical interconnect devices, couplers and splitters, planar lightwave circuits (PLC) and related optical products, as well as integrated modules incorporating these devices. Its optical passive products include wavelength division multiplexing (WDM), coarse wavelength division multiplexer (CWDM) and DWDM components. Its product offerings include connectivity products and optical passive products.
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