Reviewing Advanced Micro Devices (NASDAQ:AMD) and ASML (NASDAQ:ASML)

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

Earnings and Valuation

This table compares ASML and Advanced Micro Devices”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
ASML	$36.95 billion	19.21	$10.87 billion	$32.14	56.16
Advanced Micro Devices	$34.64 billion	30.44	$4.33 billion	$3.89	166.03

ASML has higher revenue and earnings than Advanced Micro Devices. ASML 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 recommendations and price targets for ASML and Advanced Micro Devices, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
ASML	3	3	19	3	2.79
Advanced Micro Devices	1	10	31	3	2.80

ASML presently has a consensus price target of $1,981.44, indicating a potential upside of 9.78%. Advanced Micro Devices has a consensus price target of $585.26, indicating a potential downside of 9.38%. Given ASML’s higher probable upside, equities analysts clearly believe ASML is more favorable than Advanced Micro Devices.

Risk & Volatility

ASML has a beta of 1.77, suggesting that its stock price is 77% more volatile than the S&P 500. Comparatively, Advanced Micro Devices has a beta of 2.45, suggesting that its stock price is 145% more volatile than the S&P 500.

Insider & Institutional Ownership

26.1% of ASML shares are held by institutional investors. Comparatively, 71.3% of Advanced Micro Devices shares are held by institutional investors. 0.5% of Advanced Micro Devices shares are held by company 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 ASML and Advanced Micro Devices’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
ASML	30.11%	52.71%	22.10%
Advanced Micro Devices	15.58%	12.30%	9.89%

About ASML

ASML Holding N.V. develops, produces, markets, sells, and services advanced semiconductor equipment systems for chipmakers. It offers advanced semiconductor equipment systems, including lithography, metrology, and inspection systems. The company also provides extreme ultraviolet lithography systems; and deep ultraviolet lithography systems comprising immersion and dry lithography solutions to manufacture various range of semiconductor nodes and technologies. In addition, it offers metrology and inspection systems, including YieldStar optical metrology systems to assess the quality of patterns on the wafers; and HMI electron beam solutions to locate and analyze individual chip defects. Further, the company provides computational lithography solutions, and lithography systems and control software solutions; and refurbishes and upgrades lithography systems, as well as offers customer support and related services. It operates in Japan, South Korea, Singapore, Taiwan, China, rest of Asia, the Netherlands, rest of Europe, the Middle East, Africa, and the United States. The company was formerly known as ASM Lithography Holding N.V. and changed its name to ASML Holding N.V. in 2001. ASML Holding N.V. was founded in 1984 and is headquartered in Veldhoven, the Netherlands.

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.