Advanced Micro Devices (NASDAQ:AMD – Get Free Report) and DAQO New Energy (NYSE:DQ – Get Free Report) are both technology companies, but which is the superior stock? We will contrast the two companies based on the strength of their risk, analyst recommendations, valuation, profitability, dividends, institutional ownership and earnings.
Profitability
This table compares Advanced Micro Devices and DAQO New Energy’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Advanced Micro Devices | 15.58% | 12.30% | 9.89% |
| DAQO New Energy | -34.50% | -3.26% | -3.01% |
Risk and Volatility
Advanced Micro Devices has a beta of 2.45, indicating that its share price is 145% more volatile than the S&P 500. Comparatively, DAQO New Energy has a beta of 0.67, indicating that its share price is 33% less volatile than the S&P 500.
Insider and Institutional Ownership
71.3% of Advanced Micro Devices shares are owned by institutional investors. Comparatively, 47.2% of DAQO New Energy shares are owned by institutional investors. 0.5% of Advanced Micro Devices shares are owned by insiders. Comparatively, 24.3% of DAQO New Energy shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.
Earnings and Valuation
This table compares Advanced Micro Devices and DAQO New Energy”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Advanced Micro Devices | $34.64 billion | 24.36 | $4.33 billion | $3.89 | 132.85 |
| DAQO New Energy | $665.41 million | 1.04 | -$170.51 million | ($2.84) | -3.60 |
Advanced Micro Devices has higher revenue and earnings than DAQO New Energy. DAQO New Energy 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.
Analyst Recommendations
This is a breakdown of recent ratings and recommmendations for Advanced Micro Devices and DAQO New Energy, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Advanced Micro Devices | 1 | 8 | 31 | 3 | 2.84 |
| DAQO New Energy | 3 | 2 | 1 | 0 | 1.67 |
Advanced Micro Devices presently has a consensus price target of $606.76, suggesting a potential upside of 17.41%. DAQO New Energy has a consensus price target of $15.83, suggesting a potential upside of 54.85%. Given DAQO New Energy’s higher possible upside, analysts plainly believe DAQO New Energy is more favorable than Advanced Micro Devices.
Summary
Advanced Micro Devices beats DAQO New Energy on 13 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 DAQO New Energy
Daqo New Energy Corp., together with its subsidiaries, manufactures and sells polysilicon to photovoltaic product manufacturers in the People's Republic of China. Its products are used in ingots, wafers, cells, and modules for solar power solutions. The company was formerly known as Mega Stand International Limited and changed its name to Daqo New Energy Corp. in August 2009. Daqo New Energy Corp. was founded in 2006 and is based in Shanghai, the People's Republic of China.
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