Financial Review: Infineon Technologies (IFNNY) vs. Advanced Micro Devices (NASDAQ:AMD)

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

Risk and Volatility

Infineon Technologies has a beta of 1.02, meaning that its stock price is 2% more volatile than the S&P 500. Comparatively, Advanced Micro Devices has a beta of 3.4, meaning that its stock price is 240% more volatile than the S&P 500.

Analyst Ratings

This is a summary of recent ratings for Infineon Technologies and Advanced Micro Devices, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Infineon Technologies 0 0 2 0 3.00
Advanced Micro Devices 2 10 15 0 2.48

Advanced Micro Devices has a consensus target price of $27.30, indicating a potential downside of 0.11%. Given Advanced Micro Devices’ higher probable upside, analysts clearly believe Advanced Micro Devices is more favorable than Infineon Technologies.

Valuation and Earnings

This table compares Infineon Technologies and Advanced Micro Devices’ revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Infineon Technologies $8.83 billion 2.99 $1.28 billion $1.14 20.38
Advanced Micro Devices $6.48 billion 4.57 $337.00 million $0.35 78.09

Infineon Technologies has higher revenue and earnings than Advanced Micro Devices. Infineon Technologies 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.

Dividends

Infineon Technologies pays an annual dividend of $0.21 per share and has a dividend yield of 0.9%. Advanced Micro Devices does not pay a dividend. Infineon Technologies pays out 18.4% of its earnings in the form of a dividend.

Insider & Institutional Ownership

0.2% of Infineon Technologies shares are owned by institutional investors. Comparatively, 58.8% of Advanced Micro Devices shares are owned by institutional investors. 1.5% of Advanced Micro Devices shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Profitability

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

Net Margins Return on Equity Return on Assets
Infineon Technologies 14.55% 18.42% 11.00%
Advanced Micro Devices 5.20% 37.84% 8.99%

Summary

Advanced Micro Devices beats Infineon Technologies on 9 of the 16 factors compared between the two stocks.

Infineon Technologies Company Profile

Infineon Technologies AG designs, develops, manufactures, and markets semiconductors and system solutions worldwide. The company operates in four segments: Automotive, Industrial Power Control, Power Management & Multimarket, and Digital Security Solutions. The Automotive segment offers automotive microcontrollers for powertrain, safety, and driver assistance systems; 3D ToF, magnetic, and pressure sensors; discrete power semiconductors; IGBT modules; industrial microcontrollers; power and radar sensor integrated circuits (ICs); transceivers; and voltage regulators for use in assistance and safety systems, comfort electronics, and powertrain and security products. The Industrial Power Control segment provides bare dies, discrete IGBTs, driver ICs, IGBT modules and stacks, and silicon carbide MOSEFTs and modules for electric vehicle charging stations, energy distribution, home appliances, industrial drives, industrial robots, industrial vehicles, renewable energy generation, and traction. The Power Management & Multimarket segment offers control ICs, customized chips, discrete low-voltage and high-voltage power MOSFETs and driver ICs, GPS low-noise amplifiers, MEMS and ASICs for pressure sensors and silicon microphones, radar sensor ICs, RF antenna switches and power transistors, silicon carbide diodes, and transient voltage suppressor diodes for use in cellular infrastructure, electric vehicle charging stations, DC motors, various components, Internet of Things, LED and conventional lighting systems, mobile devices, and power management. The Digital Security Solutions segment provides contact-based, contactless, dual interface, and embedded security controllers for authentication, automotive, government identification document, healthcare card, Internet of things, mobile communication, payment system, mobile payment, ticketing, access control, and trusted computing applications. Infineon Technologies AG is headquartered in Munich, Germany.

Advanced Micro Devices Company Profile

Advanced Micro Devices, Inc. operates as a semiconductor company worldwide. The company operates in two segments, Computing and Graphics; and Enterprise, Embedded and Semi-Custom. Its products include x86 microprocessors as an accelerated processing unit (APU), chipsets, discrete and integrated graphics processing units (GPUs), and professional GPUs; and server and embedded processors, and semi-custom System-on-Chip (SoC) products and technology for game consoles. The company provides x86 microprocessors for desktop PCs under the AMD Ryzen, AMD Ryzen PRO, Threadripper, AMD A-Series, AMD FX, AMD Athlon, AMD Athlon PRO, and AMD Pro A-Series processors brands; microprocessors for notebook and 2-in-1s under the AMD Ryzen processors with Radeon Vega GPUs, AMD A-Series, AMD Athlon, AMD Ryzen PRO, and AMD Pro A-Series processors brands; microprocessors for servers under the AMD EPYC and AMD Opteron brands; and chipsets under the AMD trademark. It also offers discrete GPUs for desktop and notebook PCs under the AMD Radeon graphics and AMD Embedded Radeon brands; professional graphics products under the AMD Radeon Pro and AMD FirePro graphics brands; and Radeon Instinct accelerators for servers. In addition, the company provides embedded processor solutions for interactive digital signage, casino gaming, and medical imaging under the AMD Opteron, AMD Athlon, AMD Geode, AMD Ryzen, AMD EPYC, AMD R-Series, and G-Series processors brands; and customer-specific solutions based on AMD's CPU, GPU, and multi-media technologies, as well as semi-custom SoC products. It serves original equipment and design manufacturers, datacenters, original design manufacturers, system integrators, distributors, and add-in-board manufacturers through its direct sales force, independent distributors, and sales representatives. Advanced Micro Devices, Inc. was founded in 1969 and is headquartered in Santa Clara, California.

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