Semiconductor Manufacturing International (NYSE: SMI) and Advanced Micro Devices (NASDAQ:AMD) are both mid-cap computer and technology companies, but which is the superior investment? We will compare the two businesses based on the strength of their dividends, valuation, earnings, institutional ownership, risk, analyst recommendations and profitability.

Analyst Ratings

This is a breakdown of recent ratings and target prices for Semiconductor Manufacturing International and Advanced Micro Devices, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Semiconductor Manufacturing International 7 4 1 0 1.50
Advanced Micro Devices 5 13 10 0 2.18

Advanced Micro Devices has a consensus price target of $14.37, suggesting a potential upside of 44.56%. Given Advanced Micro Devices’ stronger consensus rating and higher probable upside, analysts plainly believe Advanced Micro Devices is more favorable than Semiconductor Manufacturing International.

Institutional & Insider Ownership

0.7% of Semiconductor Manufacturing International shares are held by institutional investors. Comparatively, 60.0% of Advanced Micro Devices shares are held by institutional investors. 1.6% of Advanced Micro Devices shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Profitability

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

Net Margins Return on Equity Return on Assets
Semiconductor Manufacturing International 7.54% 4.06% 2.24%
Advanced Micro Devices -1.39% -4.99% -0.65%

Earnings & Valuation

This table compares Semiconductor Manufacturing International and Advanced Micro Devices’ top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Semiconductor Manufacturing International $2.91 billion 2.18 $376.63 million $0.25 27.28
Advanced Micro Devices $4.27 billion 2.24 -$497.00 million ($0.09) -110.44

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

Volatility & Risk

Semiconductor Manufacturing International has a beta of 0.39, meaning that its share price is 61% less volatile than the S&P 500. Comparatively, Advanced Micro Devices has a beta of 2.46, meaning that its share price is 146% more volatile than the S&P 500.

Summary

Advanced Micro Devices beats Semiconductor Manufacturing International on 8 of the 13 factors compared between the two stocks.

About Semiconductor Manufacturing International

Semiconductor Manufacturing International Corporation is an investment holding company principally engaged in the computer-aided design, manufacture, packaging and trading of integrated circuits (IC), as well as the provision of other semiconductor services. The Company is also involved in the design and manufacture of semiconductor masks. The Company’s main products are various types of wafers. The Company distributes its products in domestic market and to overseas markets, such as the Europe and the United States.

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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