Advanced Micro Devices vs Microsoft Which Is More Reliable?

Advanced Micro Devices (AMD) and Microsoft are two major players in the technology sector, each with a significant impact on the stock market. Both companies have experienced growth and success in recent years, with AMD's stock price soaring due to strong performance in the semiconductor industry, while Microsoft continues to dominate the software market with its Windows operating system and cloud computing services. Investors closely monitor the performance of both stocks, as they are indicative of trends in the technology sector and the overall market.

Advanced Micro Devices or Microsoft?

When comparing Advanced Micro Devices and Microsoft, 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 Microsoft.

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 Microsoft has a dividend yield of 0.69%. 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, Microsoft reports a 5-year dividend growth of 10.16% year and a payout ratio of 24.63%.

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 112.59 and Microsoft's P/E ratio at 36.73. 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 3.61 while Microsoft's P/B ratio is 11.55.

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 Microsoft's is 0.99%. 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 Microsoft's ROE at 34.56%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $124.77 for Advanced Micro Devices and $445.58 for Microsoft. Over the past year, Advanced Micro Devices's prices ranged from $121.83 to $227.30, with a yearly change of 86.57%. Microsoft's prices fluctuated between $366.28 and $468.35, with a yearly change of 27.87%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.