Advanced Micro Devices (NASDAQ:AMD) versus Seagate Technology (NASDAQ:STX) Financial Survey

Advanced Micro Devices (NASDAQ:AMD) and Seagate Technology (NASDAQ:STX) are both large-cap computer and technology companies, but which is the better investment? We will compare the two businesses based on the strength of their institutional ownership, dividends, valuation, risk, profitability, earnings and analyst recommendations.

Analyst Recommendations

This is a breakdown of current ratings for Advanced Micro Devices and Seagate Technology, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Advanced Micro Devices	0	11	28	3	2.81
Seagate Technology	1	5	18	2	2.81

Advanced Micro Devices currently has a consensus target price of $277.06, indicating a potential upside of 36.37%. Seagate Technology has a consensus target price of $293.13, indicating a potential downside of 3.58%. Given Advanced Micro Devices’ stronger consensus rating and higher probable upside, analysts plainly believe Advanced Micro Devices is more favorable than Seagate Technology.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Advanced Micro Devices	10.32%	8.04%	6.48%
Seagate Technology	17.92%	-297.87%	22.57%

Valuation and Earnings

This table compares Advanced Micro Devices and Seagate Technology”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Advanced Micro Devices	$32.03 billion	10.33	$1.64 billion	$2.02	100.58
Seagate Technology	$9.10 billion	7.14	$1.47 billion	$7.79	39.03

Advanced Micro Devices has higher revenue and earnings than Seagate Technology. Seagate Technology 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.

Institutional and Insider Ownership

71.3% of Advanced Micro Devices shares are owned by institutional investors. Comparatively, 92.9% of Seagate Technology shares are owned by institutional investors. 0.1% of Advanced Micro Devices shares are owned by company insiders. Comparatively, 0.8% of Seagate Technology shares are owned by company 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 and Risk

Advanced Micro Devices has a beta of 1.95, meaning that its share price is 95% more volatile than the S&P 500. Comparatively, Seagate Technology has a beta of 1.6, meaning that its share price is 60% more volatile than the S&P 500.

Summary

Advanced Micro Devices beats Seagate Technology on 10 of the 15 factors compared between the two stocks.

About Advanced Micro Devices

Advanced Micro Devices, Inc. operates as a semiconductor company worldwide. It operates through Data Center, Client, Gaming, and Embedded segments. The company offers x86 microprocessors and graphics processing units (GPUs) as an accelerated processing unit, chipsets, data center, and professional GPUs; and embedded processors, and semi-custom system-on-chip (SoC) products, microprocessor and SoC development services and technology, data processing unites, field programmable gate arrays (FPGA), and adaptive SoC products. It provides processors under the AMD Ryzen, AMD Ryzen PRO, Ryzen Threadripper, Ryzen Threadripper PRO, AMD Athlon, AMD Athlon PRO, and AMD PRO A-Series brand names; graphics under the AMD Radeon graphics and AMD Embedded Radeon graphics; and professional graphics under the AMD Radeon Pro graphics brand name. In addition, the company offers data center graphics under the Radeon Instinct and Radeon PRO V-series brands, as well as servers under the AMD Instinct accelerators brand; server microprocessors under the AMD EPYC brands; low power solutions under the AMD Athlon, AMD Geode, AMD Ryzen, AMD EPYC, AMD R-Series, and G-Series brands; FPGA products under the Virtex-6, Virtex-7, Virtex UltraScale+, Kintex-7, Kintex UltraScale, Kintex UltraScale+, Artix-7, Artix UltraScale+, Spartan-6, and Spartan-7 brands; adaptive SOCs under the Zynq-7000, Zynq UltraScale+ MPSoC, Zynq UltraScale+ RFSoCs, Versal HBM, Versal Premium, Versal Prime, Versal AI Core, Versal AI Edge, Vitis, and Vivado brands; and compute and network acceleration board products under the Alveo brand. It serves original equipment and design manufacturers, public cloud service providers, system integrators, independent distributors, and add-in-board manufacturers through its direct sales force, and sales representatives. Advanced Micro Devices, Inc. was incorporated in 1969 and is headquartered in Santa Clara, California.

About Seagate Technology

Seagate Technology Holdings plc provides data storage technology and solutions in Singapore, the United States, the Netherlands, and internationally. It provides mass capacity storage products, including enterprise nearline hard disk drives (HDDs), enterprise nearline solid state drives (SSDs), enterprise nearline systems, video and image HDDs, and network-attached storage drives. The company also offers legacy applications comprising Mission Critical HDDs and SSDs; external storage solutions under the Seagate Ultra Touch, One Touch, and Expansion product lines, as well as under the LaCie brand name; desktop drives; notebook drives, DVR HDDs, and gaming SSDs. In addition, it provides Lyve edge-to-cloud mass capacity platform. The company sells its products primarily to OEMs, distributors, and retailers. Seagate Technology Holdings plc was founded in 1978 and is based in Dublin, Ireland.