Financial Analysis: SUMCO (OTCMKTS:SUOPY) & Advanced Micro Devices (NASDAQ:AMD)

Advanced Micro Devices (NASDAQ:AMD) and SUMCO (OTCMKTS:SUOPY) are both technology companies, but which is the better investment? We will compare the two companies based on the strength of their institutional ownership, profitability, valuation, analyst recommendations, dividends, earnings and risk.

Volatility and Risk

Advanced Micro Devices has a beta of 2.48, suggesting that its stock price is 148% more volatile than the S&P 500. Comparatively, SUMCO has a beta of 1.53, suggesting that its stock price is 53% more volatile than the S&P 500.

Earnings & Valuation

This table compares Advanced Micro Devices and SUMCO”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Advanced Micro Devices	$34.64 billion	22.39	$4.33 billion	$3.89	122.12
SUMCO	$2.74 billion	2.79	-$78.72 million	($1.03)	-42.45

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

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Advanced Micro Devices and SUMCO, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Advanced Micro Devices	1	10	31	3	2.80
SUMCO	0	1	0	1	3.00

Advanced Micro Devices presently has a consensus price target of $546.87, suggesting a potential upside of 15.12%. Given Advanced Micro Devices’ higher probable upside, equities analysts plainly believe Advanced Micro Devices is more favorable than SUMCO.

Insider and Institutional Ownership

71.3% of Advanced Micro Devices shares are held by institutional investors. Comparatively, 0.0% of SUMCO shares are held by institutional investors. 0.5% of Advanced Micro Devices shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Profitability

This table compares Advanced Micro Devices and SUMCO’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Advanced Micro Devices	15.58%	12.30%	9.89%
SUMCO	-6.60%	-4.18%	-2.37%

Summary

Advanced Micro Devices beats SUMCO on 14 of the 15 factors compared between the two stocks.

About Advanced Micro Devices

Advanced Micro Devices, Inc. operates as a semiconductor company worldwide. It operates through Data Center, Client, Gaming, and Embedded segments. The company offers x86 microprocessors and graphics processing units (GPUs) as an accelerated processing unit, chipsets, data center, and professional GPUs; and embedded processors, and semi-custom system-on-chip (SoC) products, microprocessor and SoC development services and technology, data processing unites, field programmable gate arrays (FPGA), and adaptive SoC products. It provides processors under the AMD Ryzen, AMD Ryzen PRO, Ryzen Threadripper, Ryzen Threadripper PRO, AMD Athlon, AMD Athlon PRO, and AMD PRO A-Series brand names; graphics under the AMD Radeon graphics and AMD Embedded Radeon graphics; and professional graphics under the AMD Radeon Pro graphics brand name. In addition, the company offers data center graphics under the Radeon Instinct and Radeon PRO V-series brands, as well as servers under the AMD Instinct accelerators brand; server microprocessors under the AMD EPYC brands; low power solutions under the AMD Athlon, AMD Geode, AMD Ryzen, AMD EPYC, AMD R-Series, and G-Series brands; FPGA products under the Virtex-6, Virtex-7, Virtex UltraScale+, Kintex-7, Kintex UltraScale, Kintex UltraScale+, Artix-7, Artix UltraScale+, Spartan-6, and Spartan-7 brands; adaptive SOCs under the Zynq-7000, Zynq UltraScale+ MPSoC, Zynq UltraScale+ RFSoCs, Versal HBM, Versal Premium, Versal Prime, Versal AI Core, Versal AI Edge, Vitis, and Vivado brands; and compute and network acceleration board products under the Alveo brand. It serves original equipment and design manufacturers, public cloud service providers, system integrators, independent distributors, and add-in-board manufacturers through its direct sales force, and sales representatives. Advanced Micro Devices, Inc. was incorporated in 1969 and is headquartered in Santa Clara, California.

About SUMCO

Sumco Corporation manufactures and sells silicon wafers for the semiconductor industry in Japan, the United States, China, Taiwan, Korea, and internationally. It provides monocrystalline ingots, as well as polished, annealed, epitaxial, junction isolated, silicon-on-insulator, and reclaimed polished wafers. The company was formerly known as Sumitomo Mitsubishi Silicon Corp. and changed its name to Sumco Corporation in August 2005. Sumco Corporation was incorporated in 1999 and is headquartered in Tokyo, Japan.