Advanced Micro Devices vs Telefonaktiebolaget LM Ericsson Which Is Superior?

Advanced Micro Devices (AMD) and Telefonaktiebolaget LM Ericsson (Ericsson) are two prominent companies in the tech industry with differing focuses. AMD is a leading semiconductor company known for its innovative products, while Ericsson is a telecommunications giant specializing in networking equipment. Both companies operate in highly competitive markets, facing challenges and opportunities unique to their sectors. Investors may be drawn to AMD's strong performance in the tech sector, while Ericsson offers stability and growth potential in the telecommunications market.

Advanced Micro Devices or Telefonaktiebolaget LM Ericsson?

When comparing Advanced Micro Devices and Telefonaktiebolaget LM Ericsson, 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 Telefonaktiebolaget LM Ericsson.

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 Telefonaktiebolaget LM Ericsson has a dividend yield of 3.3%. 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, Telefonaktiebolaget LM Ericsson reports a 5-year dividend growth of 9.81% year and a payout ratio of -667.40%.

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 Telefonaktiebolaget LM Ericsson's P/E ratio at -222.20. 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 Telefonaktiebolaget LM Ericsson's P/B ratio is 3.50.

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 Telefonaktiebolaget LM Ericsson's is 0.23%. 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 Telefonaktiebolaget LM Ericsson's ROE at -1.44%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $124.77 for Advanced Micro Devices and $8.25 for Telefonaktiebolaget LM Ericsson. Over the past year, Advanced Micro Devices's prices ranged from $121.83 to $227.30, with a yearly change of 86.57%. Telefonaktiebolaget LM Ericsson's prices fluctuated between $4.77 and $8.62, with a yearly change of 80.71%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.