Financial Survey: Spansion (CODE) versus Advanced Micro Devices (AMD)

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

Profitability

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

Net Margins Return on Equity Return on Assets
Spansion -7.99% -18.66% -7.19%
Advanced Micro Devices 0.81% 16.76% 2.38%

Analyst Recommendations

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

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Spansion 0 0 0 0 N/A
Advanced Micro Devices 4 12 12 0 2.29

Advanced Micro Devices has a consensus target price of $14.93, indicating a potential upside of 22.41%. Given Advanced Micro Devices’ higher probable upside, analysts clearly believe Advanced Micro Devices is more favorable than Spansion.

Institutional and Insider Ownership

60.9% of Advanced Micro Devices shares are held by institutional investors. 1.6% of Advanced Micro Devices shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Valuation and Earnings

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

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Spansion N/A N/A N/A ($1.15) -33.50
Advanced Micro Devices $5.33 billion 2.21 $43.00 million $0.03 406.67

Advanced Micro Devices has higher revenue and earnings than Spansion. Spansion 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.

Summary

Advanced Micro Devices beats Spansion on 10 of the 10 factors compared between the two stocks.

Spansion Company Profile

Spansion Inc. (Spansion) is a designer, manufacturer and developer of embedded systems solutions. The Company’s embedded systems solutions address a variety of applications, including automotive, consumer electronics, networking and telecommunications equipment, tablets, personal computers (PCs), gaming consoles and industrial equipment with a range of products. The Company has two product groups for embedded applications: flash memory and microcontrollers/analog products. Its flash memory market consists of two architectures: NOR and NAND flash memory. NOR flash memory is used for code execution and storage in consumer electronics, automobiles, communications, gaming and industrial applications. NAND flash memory is used for data storage in applications, such as solid-state drives, removable storage devices and embedded managed NAND devices. The Company focuses on embedded markets, such as transportation, industrial, consumer, communications and gaming markets.

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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