Head to Head Review: Sanmina (SANM) and Advanced Micro Devices (AMD)

Sanmina (NASDAQ: SANM) and Advanced Micro Devices (NASDAQ:AMD) are both technology companies, but which is the superior business? We will compare the two businesses based on the strength of their analyst recommendations, risk, earnings, institutional ownership, valuation, dividends and profitability.

Profitability

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

Net Margins Return on Equity Return on Assets
Sanmina -0.88% 11.61% 5.07%
Advanced Micro Devices 0.81% 16.76% 2.38%

Analyst Ratings

This is a summary of current ratings for Sanmina and Advanced Micro Devices, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Sanmina 0 3 2 0 2.40
Advanced Micro Devices 4 12 12 0 2.29

Sanmina currently has a consensus price target of $37.25, indicating a potential upside of 40.57%. Advanced Micro Devices has a consensus price target of $14.93, indicating a potential upside of 26.13%. Given Sanmina’s stronger consensus rating and higher probable upside, equities research analysts clearly believe Sanmina is more favorable than Advanced Micro Devices.

Institutional and Insider Ownership

90.0% of Sanmina shares are owned by institutional investors. Comparatively, 59.9% of Advanced Micro Devices shares are owned by institutional investors. 5.1% of Sanmina shares are owned by insiders. Comparatively, 1.6% of Advanced Micro Devices shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Volatility & Risk

Sanmina has a beta of 0.7, indicating that its share price is 30% less volatile than the S&P 500. Comparatively, Advanced Micro Devices has a beta of 2.7, indicating that its share price is 170% more volatile than the S&P 500.

Earnings & Valuation

This table compares Sanmina and Advanced Micro Devices’ gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Sanmina $6.87 billion 0.27 $138.83 million $1.50 17.67
Advanced Micro Devices $5.33 billion 2.14 $43.00 million $0.01 1,184.00

Sanmina has higher revenue and earnings than Advanced Micro Devices. Sanmina 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.

Summary

Sanmina beats Advanced Micro Devices on 8 of the 14 factors compared between the two stocks.

About Sanmina

Sanmina Corporation is a provider of integrated manufacturing solutions, components, products and repair, logistics and after-market services. The Company provides its offerings primarily to original equipment manufacturers (OEMs) in various industries, including communications networks, storage, industrial, defense and aerospace, medical and energy. The Company operates through two businesses: Integrated Manufacturing Solutions (IMS) and Components, Products and Services (CPS). IMS consists of printed circuit board assembly and test, final system assembly and test, and direct-order-fulfillment. Its Components include interconnect systems and mechanical systems. Its Products include memory, radio frequency (RF), optical and microelectronics solutions, defense and aerospace products, storage solutions and cloud-based manufacturing execution software. Its Services include design, engineering, logistics and repair services.

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.

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