ASML vs Advanced Micro Devices

ASML and Advanced Micro Devices (AMD) are two leading companies in the semiconductor industry, each playing a crucial role in the advancement of technology. ASML is a Dutch company that specializes in the production of photolithography machines used in the manufacturing of integrated circuits, while AMD is an American multinational semiconductor company known for its processors and graphics cards. Both companies have seen significant growth in recent years, but their stocks have performed differently in the market. Let's explore the key factors influencing the performance of ASML and AMD stocks.

ASML or Advanced Micro Devices?

When comparing ASML and Advanced Micro Devices, 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 ASML and Advanced Micro Devices.

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. ASML has a dividend yield of 0.9%, while Advanced Micro Devices has a dividend yield of -%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. ASML reports a 5-year dividend growth of 29.40% year and a payout ratio of 35.60%. On the other hand, Advanced Micro Devices reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%.

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 ASML P/E ratio at 39.13 and Advanced Micro Devices's P/E ratio at 191.61. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. ASML P/B ratio is 17.93 while Advanced Micro Devices's P/B ratio is 4.59.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, ASML has seen a 5-year revenue growth of 1.72%, while Advanced Micro Devices's is 1.29%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with ASML's ROE at 49.99% and Advanced Micro Devices's ROE at 2.42%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $717.50 for ASML and $155.74 for Advanced Micro Devices. Over the past year, ASML's prices ranged from $573.86 to $1110.09, with a yearly change of 93.44%. Advanced Micro Devices's prices fluctuated between $93.12 and $227.30, with a yearly change of 144.09%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.