Amd vs SMCi what is the better buy
10/30/2024 07:07am
**AMD is the better buy compared to SMC** based on the following analysis:
1. **Revenue and Growth**:
- AMD's revenue is $5.84 billion, which is significantly higher than SMC's $101.32 million.
- AMD's revenue growth rate is 8.88%, which is much higher than SMC's 3.5%.
- Over the past three years, AMD's annual revenue CAGR is 17.48%, while SMC's is 7.03%. This suggests that AMD has a more consistent and robust growth trajectory.
2. **Profitability**:
- AMD's net profit margin is 3.43%, which is relatively low but still positive at $265 million.
- SMC's net profit margin is 49.57%, which is quite high, but its net income is negative at $-23.78 million.
- AMD's net income has grown by 881.48%, which is a substantial increase. In contrast, SMC's net income has decreased by -75.61%.
- AMD's diluted EPS has grown by 128.57%, while SMC's has decreased by -125.37%. This indicates a significant improvement in earnings per share for AMD.
3. **Valuation Metrics**:
- AMD's P/E ratio is 198.72, which is high but not unusual for a technology company.
- AMD's P/S ratio is 11.12, which is higher than SMC's 1.59. This could suggest that AMD is trading at a premium to its sales.
- AMD's Price to Book Ratio is 4.76, which is higher than SMC's 1.02. This indicates that investors are willing to pay a premium for AMD's assets.
4. **Technical Indicators**:
- AMD's RSI is 59.1, which is neither overbought nor oversold.
- SMC's RSI is 39.91, which is closer to the oversold territory. This suggests that SMC may be undervalued compared to AMD.
- AMD's MACD is -0.62, which suggests a potential bearish momentum. SMC's MACD is -0.21, indicating a less negative momentum.
- AMD's KDJ is 83.91, which is in the overbought zone. SMC's KDJ is 30.14, which is in the oversold zone.
5. **Analyst Sentiments**:
- The consensus rating for AMD is "Buy" with an average price target of $180.53, suggesting that analysts are optimistic about AMD's future performance.
- There is no available consensus rating or price target for SMC, which makes it difficult to gauge the analyst sentiment for SMC.
In conclusion, while SMC may have a lower P/E ratio and a more reasonable valuation based on technical indicators, AMD's higher revenue growth, improved profitability, and positive growth rates make it the stronger financial performer between the two companies. AMD's higher revenue and net income growth rates indicate a more robust financial performance, making it the better buy compared to SMC.