AMD vs. MSFT: A Head-to-Head Stock Comparison
UpdatedHere’s a clear look at AMD and MSFT, comparing key factors like performance, valuation metrics, dividends, and financial strength.
Company Overview
MSFT’s market capitalization of 3,448.03 billion USD is significantly greater than AMD’s 191.22 billion USD, highlighting its more substantial market valuation.
AMD’s beta of 1.99 points to significantly higher volatility compared to MSFT (beta: 1.03), suggesting AMD has greater potential for both gains and losses relative to market movements.
| Symbol | AMD | MSFT |
|---|---|---|
| Company Name | Advanced Micro Devices, Inc. | Microsoft Corporation |
| Country | US | US |
| Sector | Technology | Technology |
| Industry | Semiconductors | Software - Infrastructure |
| CEO | Dr. Lisa T. Su Ph.D. | Mr. Satya Nadella |
| Price | 117.935 USD | 463.91 USD |
| Market Cap | 191.22 billion USD | 3,448.03 billion USD |
| Beta | 1.99 | 1.03 |
| Exchange | NASDAQ | NASDAQ |
| IPO Date | March 17, 1980 | March 13, 1986 |
| ADR | No | No |
Performance Comparison
This chart compares the performance of AMD and MSFT over the past year by tracking the growth of an initial $10,000 investment in each (starting one year ago).
Data is adjusted for dividends and splits.
Valuation Metrics Comparison
This section compares the market valuation of AMD and MSFT. Key takeaways regarding their valuation, when viewed within their industry context, are presented in the commentary that follows.
- AMD’s Price-to-Earnings (P/E) ratio of 85.79 is very high. This often means that its current market price reflects high investor confidence in its future earnings potential, but it could also suggest the stock is expensive relative to its current earnings power.
| Symbol | AMD | MSFT |
|---|---|---|
| Price-to-Earnings Ratio (P/E, TTM) | 85.79 | 35.69 |
| Forward PEG Ratio (TTM) | 2.25 | 2.17 |
| Price-to-Sales Ratio (P/S, TTM) | 6.89 | 12.77 |
| Price-to-Book Ratio (P/B, TTM) | 3.30 | 10.71 |
| EV-to-EBITDA (TTM) | 31.94 | 23.19 |
| EV-to-Sales (TTM) | 6.84 | 12.89 |
Dividend Comparison
AMD currently offers no dividend yield, suggesting it may be reinvesting available cash back into the business for future growth, while MSFT provides a 0.70% dividend yield, offering investors a component of income return.
| Symbol | AMD | MSFT |
|---|---|---|
| Dividend Yield (TTM) | 0.00% | 0.70% |
Financial Strength Metrics Comparison
Explore the financial strength details for AMD and MSFT in the table below.
| Symbol | AMD | MSFT |
|---|---|---|
| Current Ratio (TTM) | 2.80 | 1.37 |
| Quick Ratio (TTM) | 1.97 | 1.36 |
| Debt-to-Equity Ratio (TTM) | 0.08 | 0.19 |
| Debt-to-Asset Ratio (TTM) | 0.07 | 0.11 |
| Net Debt-to-EBITDA Ratio (TTM) | -0.22 | 0.21 |
| Interest Coverage Ratio (TTM) | 30.69 | 49.43 |