Alliance Fiber Optic Products (NASDAQ: AFOP) and Advanced Micro Devices (NASDAQ:AMD) are both technology companies, but which is the better stock? We will contrast the two businesses based on the strength of their valuation, profitability, dividends, analyst recommendations, institutional ownership, earnings and risk.

Analyst Recommendations

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This is a breakdown of recent ratings and target prices for Alliance Fiber Optic Products and Advanced Micro Devices, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Alliance Fiber Optic Products 0 0 0 0 N/A
Advanced Micro Devices 4 13 11 0 2.25

Advanced Micro Devices has a consensus target price of $14.73, indicating a potential upside of 12.41%. Given Advanced Micro Devices’ higher probable upside, analysts clearly believe Advanced Micro Devices is more favorable than Alliance Fiber Optic Products.

Insider & Institutional 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 endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Valuation & Earnings

This table compares Alliance Fiber Optic Products and Advanced Micro Devices’ revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Alliance Fiber Optic Products N/A N/A N/A $0.49 37.78
Advanced Micro Devices $4.27 billion 2.96 -$497.00 million ($0.08) -163.75

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

Risk and Volatility

Alliance Fiber Optic Products has a beta of 0.87, suggesting that its share price is 13% less volatile than the S&P 500. Comparatively, Advanced Micro Devices has a beta of 2.47, suggesting that its share price is 147% more volatile than the S&P 500.

Profitability

This table compares Alliance Fiber Optic Products and Advanced Micro Devices’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Alliance Fiber Optic Products -4.29% -3.41% -2.68%
Advanced Micro Devices -1.39% -4.99% -0.65%

Summary

Advanced Micro Devices beats Alliance Fiber Optic Products on 8 of the 11 factors compared between the two stocks.

Alliance Fiber Optic Products Company Profile

Alliance Fiber Optic Products, Inc. (AFOP) designs, manufactures and markets a range of fiber optic components and integrated modules. The Company offers a range of products, including interconnect devices, which are used to connect optical fibers and components; couplers and splitters, which are used to divide and combine optical power, and dense wavelength division multiplexing (DWDM) devices, which are used to separate and combine multiple specific wavelengths. Its connectivity product family provides a line of optical interconnect devices, couplers and splitters, planar lightwave circuits (PLC) and related optical products, as well as integrated modules incorporating these devices. Its optical passive products include wavelength division multiplexing (WDM), coarse wavelength division multiplexer (CWDM) and DWDM components. Its product offerings include connectivity products and optical passive products.

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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