AMD vs. HD: A Head-to-Head Stock Comparison
Updated onHere’s a clear look at AMD and HD, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.
Company Overview
HD’s market capitalization of 369.79 billion USD is significantly greater than AMD’s 223.61 billion USD, highlighting its more substantial market valuation.
AMD’s beta of 1.99 points to significantly higher volatility compared to HD (beta: 1.02), suggesting AMD has greater potential for both gains and losses relative to market movements.
| Symbol | AMD | HD |
|---|---|---|
| Company Name | Advanced Micro Devices, Inc. | The Home Depot, Inc. |
| Country | US | US |
| Sector | Technology | Consumer Cyclical |
| Industry | Semiconductors | Home Improvement |
| CEO | Lisa T. Su | Edward P. Decker |
| Price | 137.91 USD | 371.68 USD |
| Market Cap | 223.61 billion USD | 369.79 billion USD |
| Beta | 1.99 | 1.02 |
| Exchange | NASDAQ | NYSE |
| IPO Date | March 17, 1980 | September 22, 1981 |
| ADR | No | No |
Historical Performance
This chart compares the performance of AMD and HD by tracking the growth of an initial $10,000 investment in each. Use the tabs to select the desired time period.
Data is adjusted for dividends and splits.
Profitability
Return on Equity
AMD
3.89%
Semiconductors Industry
- Max
- 41.84%
- Q3
- 15.81%
- Median
- 6.31%
- Q1
- -5.54%
- Min
- -30.12%
AMD’s Return on Equity of 3.89% is on par with the norm for the Semiconductors industry, indicating its profitability relative to shareholder equity is typical for the sector.
HD
236.10%
Home Improvement Industry
- Max
- 17.64%
- Q3
- 15.63%
- Median
- 8.27%
- Q1
- 2.23%
- Min
- 0.65%
HD’s Return on Equity of 236.10% is exceptionally high, placing it well beyond the typical range for the Home Improvement industry. This demonstrates a superior ability to generate profit from shareholder investments, though it could also be inflated by high financial leverage.
Return on Invested Capital
AMD
3.29%
Semiconductors Industry
- Max
- 30.91%
- Q3
- 11.34%
- Median
- 4.08%
- Q1
- -2.17%
- Min
- -19.59%
AMD’s Return on Invested Capital of 3.29% is in line with the norm for the Semiconductors industry, reflecting a standard level of efficiency in generating profits from its capital base.
HD
21.80%
Home Improvement Industry
- Max
- 27.68%
- Q3
- 17.94%
- Median
- 5.81%
- Q1
- 3.74%
- Min
- 0.32%
In the upper quartile for the Home Improvement industry, HD’s Return on Invested Capital of 21.80% signifies a highly effective use of its capital to generate profits when compared to its peers.
Net Profit Margin
AMD
8.03%
Semiconductors Industry
- Max
- 51.69%
- Q3
- 19.67%
- Median
- 8.56%
- Q1
- -5.44%
- Min
- -38.60%
AMD’s Net Profit Margin of 8.03% is aligned with the median group of its peers in the Semiconductors industry. This indicates its ability to convert revenue into profit is typical for the sector.
HD
8.98%
Home Improvement Industry
- Max
- 8.98%
- Q3
- 7.30%
- Median
- 4.53%
- Q1
- 3.35%
- Min
- 0.23%
A Net Profit Margin of 8.98% places HD in the upper quartile for the Home Improvement industry, signifying strong profitability and more effective cost management than most of its peers.
Operating Profit Margin
AMD
9.62%
Semiconductors Industry
- Max
- 58.03%
- Q3
- 22.12%
- Median
- 8.40%
- Q1
- -3.73%
- Min
- -36.14%
AMD’s Operating Profit Margin of 9.62% is around the midpoint for the Semiconductors industry, indicating that its efficiency in managing core business operations is typical for the sector.
HD
13.24%
Home Improvement Industry
- Max
- 13.24%
- Q3
- 10.79%
- Median
- 5.88%
- Q1
- 3.74%
- Min
- 0.41%
An Operating Profit Margin of 13.24% places HD in the upper quartile for the Home Improvement industry. This signals a strong ability to translate revenue into operating profit, outperforming most of its competitors in core business efficiency.
Profitability at a Glance
| Symbol | AMD | HD |
|---|---|---|
| Return on Equity (TTM) | 3.89% | 236.10% |
| Return on Assets (TTM) | 3.11% | 14.76% |
| Return on Invested Capital (TTM) | 3.29% | 21.80% |
| Net Profit Margin (TTM) | 8.03% | 8.98% |
| Operating Profit Margin (TTM) | 9.62% | 13.24% |
| Gross Profit Margin (TTM) | 50.09% | 33.34% |
Financial Strength
Current Ratio
AMD
2.80
Semiconductors Industry
- Max
- 9.10
- Q3
- 5.23
- Median
- 3.09
- Q1
- 2.49
- Min
- 1.02
AMD’s Current Ratio of 2.80 aligns with the median group of the Semiconductors industry, indicating that its short-term liquidity is in line with its sector peers.
HD
1.09
Home Improvement Industry
- Max
- 1.81
- Q3
- 1.42
- Median
- 1.24
- Q1
- 1.13
- Min
- 1.01
HD’s Current Ratio of 1.09 falls into the lower quartile for the Home Improvement industry. This indicates a tighter liquidity situation and a more constrained capacity to handle short-term debt than many of its competitors.
Debt-to-Equity Ratio
AMD
0.08
Semiconductors Industry
- Max
- 0.97
- Q3
- 0.46
- Median
- 0.21
- Q1
- 0.05
- Min
- 0.00
AMD’s Debt-to-Equity Ratio of 0.08 is typical for the Semiconductors industry, indicating its use of leverage is in line with the sector norm. This suggests a balanced approach to its capital structure.
HD
2.89
Home Improvement Industry
- Max
- 1.50
- Q3
- 1.50
- Median
- 1.14
- Q1
- 0.88
- Min
- 0.71
With a Debt-to-Equity Ratio of 2.89, HD operates with exceptionally high leverage compared to the Home Improvement industry norm. This suggests an aggressive reliance on debt financing, which can magnify returns but also significantly elevates financial risk.
Interest Coverage Ratio
AMD
30.69
Semiconductors Industry
- Max
- 36.25
- Q3
- 29.12
- Median
- 7.01
- Q1
- -1.22
- Min
- -18.18
AMD’s Interest Coverage Ratio of 30.69 is in the upper quartile for the Semiconductors industry, signifying a strong and healthy capacity to meet its interest payments from operating profits.
HD
8.80
Home Improvement Industry
- Max
- 77.66
- Q3
- 36.61
- Median
- 10.22
- Q1
- 9.24
- Min
- 8.80
In the lower quartile for the Home Improvement industry, HD’s Interest Coverage Ratio of 8.80 indicates a tighter cushion for servicing debt, suggesting less financial flexibility than many of its competitors.
Financial Strength at a Glance
| Symbol | AMD | HD |
|---|---|---|
| Current Ratio (TTM) | 2.80 | 1.09 |
| Quick Ratio (TTM) | 1.97 | 0.28 |
| Debt-to-Equity Ratio (TTM) | 0.08 | 2.89 |
| Debt-to-Asset Ratio (TTM) | 0.07 | 0.23 |
| Net Debt-to-EBITDA Ratio (TTM) | -0.22 | 0.84 |
| Interest Coverage Ratio (TTM) | 30.69 | 8.80 |
Growth
The following charts compare key year-over-year (YoY) growth metrics for AMD and HD. These metrics are based on the companies’ annual financial reports.
Revenue Growth
Earnings Per Share (EPS) Growth
Free Cash Flow Growth
Dividend
Dividend Yield
AMD
0.00%
Semiconductors Industry
- Max
- 6.48%
- Q3
- 0.93%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
AMD currently does not pay a dividend, resulting in a yield of 0%. This is a common strategy for growth-focused companies that prioritize reinvesting earnings, though it may be less typical in mature, income-oriented sectors.
HD
2.45%
Home Improvement Industry
- Max
- 6.27%
- Q3
- 2.37%
- Median
- 1.03%
- Q1
- 0.00%
- Min
- 0.00%
With a Dividend Yield of 2.45%, HD offers a more attractive income stream than most of its peers in the Home Improvement industry, signaling a strong commitment to shareholder returns.
Dividend Payout Ratio
AMD
0.00%
Semiconductors Industry
- Max
- 204.29%
- Q3
- 31.85%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
AMD has a Dividend Payout Ratio of 0%, indicating it does not currently pay a dividend. This is a common strategy for growth-oriented companies that reinvest all profits back into the business.
HD
61.38%
Home Improvement Industry
- Max
- 120.85%
- Q3
- 88.43%
- Median
- 49.53%
- Q1
- 9.42%
- Min
- 0.00%
HD’s Dividend Payout Ratio of 61.38% is within the typical range for the Home Improvement industry, suggesting a balanced approach between shareholder payouts and company reinvestment.
Dividend at a Glance
| Symbol | AMD | HD |
|---|---|---|
| Dividend Yield (TTM) | 0.00% | 2.45% |
| Dividend Payout Ratio (TTM) | 0.00% | 61.38% |
Valuation
Price-to-Earnings Ratio
AMD
100.32
Semiconductors Industry
- Max
- 86.15
- Q3
- 47.38
- Median
- 27.87
- Q1
- 18.89
- Min
- 4.73
At 100.32, AMD’s P/E Ratio is exceptionally high, exceeding the typical maximum for the Semiconductors industry. This suggests the stock may be significantly overvalued compared to its peers and implies high market expectations that could be difficult to meet.
HD
25.19
Home Improvement Industry
- Max
- 39.38
- Q3
- 35.79
- Median
- 23.00
- Q1
- 18.95
- Min
- 15.05
HD’s P/E Ratio of 25.19 is within the middle range for the Home Improvement industry. This suggests its valuation is in line with the sector average, representing neither a significant premium nor a discount compared to its peers.
Forward P/E to Growth Ratio
AMD
2.56
Semiconductors Industry
- Max
- 4.73
- Q3
- 2.80
- Median
- 1.11
- Q1
- 0.68
- Min
- 0.01
The Forward PEG Ratio is often not a primary valuation metric in the Semiconductors industry.
HD
2.98
Home Improvement Industry
- Max
- 2.96
- Q3
- 2.76
- Median
- 2.09
- Q1
- 1.72
- Min
- 0.17
HD’s Forward PEG Ratio of 2.98 is exceptionally high for the Home Improvement industry. This suggests its stock price is very high relative to its expected earnings growth, signaling significant overvaluation risk.
Price-to-Sales Ratio
AMD
8.06
Semiconductors Industry
- Max
- 21.96
- Q3
- 10.21
- Median
- 4.45
- Q1
- 2.32
- Min
- 0.48
AMD’s P/S Ratio of 8.06 aligns with the market consensus for the Semiconductors industry. This suggests its valuation, based on sales, is seen as standard and is on par with its competitors.
HD
2.27
Home Improvement Industry
- Max
- 2.25
- Q3
- 1.72
- Median
- 1.23
- Q1
- 0.91
- Min
- 0.46
With a P/S Ratio of 2.27, HD trades at a valuation that eclipses even the highest in the Home Improvement industry. This implies the market has priced in exceptionally optimistic scenarios for future revenue growth, posing considerable valuation risk.
Price-to-Book Ratio
AMD
3.86
Semiconductors Industry
- Max
- 13.12
- Q3
- 6.49
- Median
- 3.31
- Q1
- 1.74
- Min
- 0.23
AMD’s P/B Ratio of 3.86 is within the conventional range for the Semiconductors industry. This shows a balanced market view, where the stock’s price is neither at a significant premium nor a discount to the book value of its peers.
HD
46.35
Home Improvement Industry
- Max
- 3.63
- Q3
- 3.63
- Median
- 3.51
- Q1
- 2.45
- Min
- 1.05
At 46.35, HD’s P/B Ratio is at an extreme premium to the Home Improvement industry. This signifies that the market’s valuation is heavily reliant on future potential rather than its current net asset value, which can be a high-risk proposition.
Valuation at a Glance
| Symbol | AMD | HD |
|---|---|---|
| Price-to-Earnings Ratio (P/E, TTM) | 100.32 | 25.19 |
| Forward PEG Ratio (TTM) | 2.56 | 2.98 |
| Price-to-Sales Ratio (P/S, TTM) | 8.06 | 2.27 |
| Price-to-Book Ratio (P/B, TTM) | 3.86 | 46.35 |
| Price-to-Free Cash Flow Ratio (P/FCF, TTM) | 81.22 | 24.34 |
| EV-to-EBITDA (TTM) | 37.22 | 15.30 |
| EV-to-Sales (TTM) | 8.01 | 2.40 |