Silicon Laboratories (NASDAQ: SLAB) and Advanced Micro Devices (NASDAQ:AMD) are both mid-cap computer and technology companies, but which is the better stock? We will compare the two companies based on the strength of their profitability, dividends, valuation, risk, institutional ownership, analyst recommendations and earnings.
Institutional and Insider Ownership
90.8% of Silicon Laboratories shares are held by institutional investors. Comparatively, 60.0% of Advanced Micro Devices shares are held by institutional investors. 34.8% of Silicon Laboratories shares are held by insiders. Comparatively, 1.6% of Advanced Micro Devices shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.
Silicon Laboratories has a beta of 1.37, suggesting that its stock price is 37% more volatile than the S&P 500. Comparatively, Advanced Micro Devices has a beta of 2.46, suggesting that its stock price is 146% more volatile than the S&P 500.
Valuation and Earnings
This table compares Silicon Laboratories and Advanced Micro Devices’ top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Silicon Laboratories||$697.63 million||5.27||$61.49 million||$1.67||51.74|
|Advanced Micro Devices||$4.27 billion||2.25||-$497.00 million||($0.09)||-110.83|
Silicon Laboratories has higher earnings, but lower revenue than Advanced Micro Devices. Advanced Micro Devices is trading at a lower price-to-earnings ratio than Silicon Laboratories, indicating that it is currently the more affordable of the two stocks.
This is a breakdown of current ratings and price targets for Silicon Laboratories and Advanced Micro Devices, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Advanced Micro Devices||5||13||10||0||2.18|
Silicon Laboratories presently has a consensus price target of $99.00, suggesting a potential upside of 14.58%. Advanced Micro Devices has a consensus price target of $14.37, suggesting a potential upside of 44.05%. Given Advanced Micro Devices’ higher probable upside, analysts plainly believe Advanced Micro Devices is more favorable than Silicon Laboratories.
This table compares Silicon Laboratories and Advanced Micro Devices’ 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%|
Silicon Laboratories beats Advanced Micro Devices on 9 of the 13 factors compared between the two stocks.
Silicon Laboratories Company Profile
Silicon Laboratories Inc. is a provider of silicon, software and solutions for the Internet of Things (IoT), Internet infrastructure, industrial, consumer and automotive markets. The Company operates through mixed-signal analog intensive products segment. It provides analog-intensive, mixed-signal solutions for use in a range of electronic products in various applications for the IoT market. It provides a range of timing and isolation products for infrastructure applications, including clocks and oscillators for networking equipment, data centers and wireless base stations, as well as digital isolators and current sensors for industrial power supplies and hybrid-electric vehicles. It provides broadcast products, such as television tuners and demodulators and automotive radio tuners, and access products, including subscriber line interface circuits for voice over Internet Protocol, embedded modems, and Power over Ethernet power source equipment and powered device integrated circuits.
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.
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