Advanced Micro Devices vs Cisco Systems Which Performs Better?

Advanced Micro Devices (AMD) and Cisco Systems are two prominent players in the tech sector, with both companies firmly established in their respective niches. AMD is known for its innovative semiconductor products, particularly in the areas of gaming and data center technology. On the other hand, Cisco Systems is a networking giant, dominating the market with its cutting-edge networking solutions. Both companies have shown strong performance in recent years, but investors may find differences in their growth potential and overall market positioning.

Advanced Micro Devices or Cisco Systems?

When comparing Advanced Micro Devices and Cisco Systems, different investors may prioritize various metrics based on their investment strategies and goals. So, ask yourself what type of investor you are. This will guide you in determining which metrics are most important for your investment decision between Advanced Micro Devices and Cisco Systems.

Dividend Investors:

Dividend investors look for stable and growing income streams, using dividend metrics to assess potential investments. A company's dividend yield essentially measures the size of its dividend relative to the total market value of the company. Advanced Micro Devices has a dividend yield of -%, while Cisco Systems has a dividend yield of 2.71%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Advanced Micro Devices reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%. On the other hand, Cisco Systems reports a 5-year dividend growth of 3.90% year and a payout ratio of 61.86%.

Value Investors:

Value investors focus on financial metrics to determine a stock's intrinsic value compared to its market value. The Price-to-Earnings (P/E) Ratio links stock price to a company's earnings per share, with Advanced Micro Devices P/E ratio at 130.73 and Cisco Systems's P/E ratio at 22.83. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Advanced Micro Devices P/B ratio is 4.19 while Cisco Systems's P/B ratio is 5.18.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Advanced Micro Devices has seen a 5-year revenue growth of 1.29%, while Cisco Systems's is 0.37%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Advanced Micro Devices's ROE at 3.24% and Cisco Systems's ROE at 22.60%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $144.91 for Advanced Micro Devices and $58.36 for Cisco Systems. Over the past year, Advanced Micro Devices's prices ranged from $116.00 to $227.30, with a yearly change of 95.95%. Cisco Systems's prices fluctuated between $44.50 and $59.38, with a yearly change of 33.44%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.