Head to Head Comparison: Inphi Corporation (IPHI) & Advanced Micro Devices (AMD)

Inphi Corporation (NYSE: IPHI) and Advanced Micro Devices (NASDAQ:AMD) are both computer and technology companies, but which is the better investment? We will contrast the two businesses based on the strength of their profitability, valuation, analyst recommendations, dividends, risk, institutional ownership and earnings.

Valuation and Earnings

This table compares Inphi Corporation and Advanced Micro Devices’ gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Inphi Corporation $329.67 million 4.93 $70.48 million $1.59 24.18
Advanced Micro Devices $4.62 billion 2.43 -$164.00 million ($0.09) -131.56

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

Analyst Ratings

This is a breakdown of current recommendations and price targets for Inphi Corporation and Advanced Micro Devices, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Inphi Corporation 0 2 10 1 2.92
Advanced Micro Devices 4 14 10 0 2.21

Inphi Corporation currently has a consensus target price of $43.46, indicating a potential upside of 13.05%. Advanced Micro Devices has a consensus target price of $14.53, indicating a potential upside of 22.70%. Given Advanced Micro Devices’ higher possible upside, analysts plainly believe Advanced Micro Devices is more favorable than Inphi Corporation.

Volatility & Risk

Inphi Corporation has a beta of 1.19, indicating that its share price is 19% more volatile than the S&P 500. Comparatively, Advanced Micro Devices has a beta of 2.79, indicating that its share price is 179% more volatile than the S&P 500.

Profitability

This table compares Inphi Corporation and Advanced Micro Devices’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Inphi Corporation 21.98% 9.77% 4.61%
Advanced Micro Devices -1.39% -4.99% -0.65%

Institutional and Insider Ownership

59.1% of Advanced Micro Devices shares are held by institutional investors. 3.6% of Inphi Corporation shares are held by company insiders. Comparatively, 1.6% of Advanced Micro Devices shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Summary

Inphi Corporation beats Advanced Micro Devices on 9 of the 13 factors compared between the two stocks.

Inphi Corporation Company Profile

Inphi Corporation is a provider of analog and mixed signal semiconductor solutions for the communications and datacenter markets. The Company’s solutions provide an interface between analog signals and digital information in systems, such as telecommunications transport systems, enterprise networking equipment and datacenters. It is engaged in the design, development and sale of analog connectivity components that operate to maintain, amplify and manage signal integrity at high speeds in a range of applications. Its semiconductor solutions are designed to address bandwidth bottlenecks in networks and enable the rollout of communications and datacenter infrastructures. The Company provides 25 gigabit (G) to 600G high-speed analog semiconductor solutions for the communications market. As of December 31, 2016, the Company’s product portfolio included products that had commercially shipped, products for which the Company had shipped engineering samples and products under development.

Advanced Micro Devices Company Profile

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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