Advanced Micro Devices (NASDAQ: AMD) and Himax (NASDAQ:HIMX) are both computer and technology companies, but which is the superior investment? We will compare the two businesses based on the strength of their profitability, risk, institutional ownership, dividends, analyst recommendations, valuation and earnings.
Earnings and Valuation
This table compares Advanced Micro Devices and Himax’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Advanced Micro Devices||$5.33 billion||1.91||$43.00 million||$0.08||131.50|
|Himax||$685.17 million||1.87||$27.96 million||$0.16||46.56|
Advanced Micro Devices has higher revenue and earnings than Himax. Himax 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.
Himax pays an annual dividend of $0.23 per share and has a dividend yield of 3.1%. Advanced Micro Devices does not pay a dividend. Himax pays out 143.8% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.
This table compares Advanced Micro Devices and Himax’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Advanced Micro Devices||0.81%||16.76%||2.38%|
Insider and Institutional Ownership
62.2% of Advanced Micro Devices shares are held by institutional investors. Comparatively, 33.2% of Himax shares are held by institutional investors. 1.8% 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.
Volatility and Risk
Advanced Micro Devices has a beta of 2.86, suggesting that its share price is 186% more volatile than the S&P 500. Comparatively, Himax has a beta of 0.38, suggesting that its share price is 62% less volatile than the S&P 500.
This is a breakdown of current recommendations and price targets for Advanced Micro Devices and Himax, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Advanced Micro Devices||5||11||13||0||2.28|
Advanced Micro Devices currently has a consensus target price of $14.50, indicating a potential upside of 37.83%. Himax has a consensus target price of $10.43, indicating a potential upside of 40.04%. Given Himax’s higher probable upside, analysts plainly believe Himax is more favorable than Advanced Micro Devices.
Advanced Micro Devices beats Himax on 11 of the 16 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.
Himax Technologies, Inc., a fabless semiconductor company, provides display imaging processing technologies to consumer electronics worldwide. The company operates through Driver IC and Non-Driver Products segments. It offers display driver integrated circuits (ICs) and timing controllers used in televisions (TVs), laptops, monitors, mobile phones, tablets, digital cameras, car navigation, and other consumer electronics devices. The company also designs and provides controllers for touch sensor displays, liquid crystal on silicon micro-displays used in palm-size projectors and head-mounted displays, light-emitting diode driver ICs, power management ICs, scaler products for monitors and projectors, tailor-made video processing IC solutions, and silicon IPs. In addition, it offers digital camera solutions, including complementary metal oxide semiconductor image sensors and wafer level optics, which are used in various applications, such as mobile phone, tablet, laptop, TV, PC camera, automobile, security, and medical devices. The company markets its products to panel manufacturers, agents or distributors, module manufacturers, and assembly houses; and camera module manufacturers, optical engine manufacturers, and television system manufacturers. Himax Technologies, Inc. was founded in 2001 and headquartered in Tainan City, Taiwan.
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