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AMD vs. MSI: A Head-to-Head Stock Comparison

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Here’s a clear look at AMD and MSI, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.

Company Overview

AMD’s market capitalization of 223.61 billion USD is substantially larger than MSI’s 70.91 billion USD, indicating a significant difference in their market valuations.

AMD’s beta of 1.99 points to significantly higher volatility compared to MSI (beta: 0.97), suggesting AMD has greater potential for both gains and losses relative to market movements.

SymbolAMDMSI
Company NameAdvanced Micro Devices, Inc.Motorola Solutions, Inc.
CountryUSUS
SectorTechnologyTechnology
IndustrySemiconductorsCommunication Equipment
CEOLisa T. SuGregory Q. Brown
Price137.91 USD424.84 USD
Market Cap223.61 billion USD70.91 billion USD
Beta1.990.97
ExchangeNASDAQNYSE
IPO DateMarch 17, 1980March 17, 1980
ADRNoNo

Historical Performance

This chart compares the performance of AMD and MSI 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.

AMD vs. MSI: Growth of a $10,000 investment over the past one year.

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.

MSI

149.56%

Communication Equipment Industry

Max
30.07%
Q3
8.07%
Median
1.84%
Q1
-11.93%
Min
-31.65%

MSI’s Return on Equity of 149.56% is exceptionally high, placing it well beyond the typical range for the Communication Equipment industry. This demonstrates a superior ability to generate profit from shareholder investments, though it could also be inflated by high financial leverage.

AMD vs. MSI: A comparison of their ROE against their respective Semiconductors and Communication Equipment industry benchmarks.

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.

MSI

22.82%

Communication Equipment Industry

Max
11.59%
Q3
6.61%
Median
2.97%
Q1
-2.58%
Min
-13.18%

MSI’s Return on Invested Capital of 22.82% is exceptionally high, placing it well beyond the typical range for the Communication Equipment industry. This demonstrates an outstanding ability to deploy capital efficiently and create significant value.

AMD vs. MSI: A comparison of their ROIC against their respective Semiconductors and Communication Equipment industry benchmarks.

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.

MSI

18.67%

Communication Equipment Industry

Max
23.65%
Q3
9.21%
Median
2.46%
Q1
-8.56%
Min
-29.87%

A Net Profit Margin of 18.67% places MSI in the upper quartile for the Communication Equipment industry, signifying strong profitability and more effective cost management than most of its peers.

AMD vs. MSI: A comparison of their Net Profit Margin against their respective Semiconductors and Communication Equipment industry benchmarks.

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.

MSI

25.20%

Communication Equipment Industry

Max
30.72%
Q3
11.64%
Median
5.79%
Q1
-2.28%
Min
-18.20%

An Operating Profit Margin of 25.20% places MSI in the upper quartile for the Communication Equipment industry. This signals a strong ability to translate revenue into operating profit, outperforming most of its competitors in core business efficiency.

AMD vs. MSI: A comparison of their Operating Margin against their respective Semiconductors and Communication Equipment industry benchmarks.

Profitability at a Glance

SymbolAMDMSI
Return on Equity (TTM)3.89%149.56%
Return on Assets (TTM)3.11%14.18%
Return on Invested Capital (TTM)3.29%22.82%
Net Profit Margin (TTM)8.03%18.67%
Operating Profit Margin (TTM)9.62%25.20%
Gross Profit Margin (TTM)50.09%50.97%

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.

MSI

1.20

Communication Equipment Industry

Max
3.40
Q3
2.59
Median
1.62
Q1
1.32
Min
0.86

MSI’s Current Ratio of 1.20 falls into the lower quartile for the Communication Equipment industry. This indicates a tighter liquidity situation and a more constrained capacity to handle short-term debt than many of its competitors.

AMD vs. MSI: A comparison of their Current Ratio against their respective Semiconductors and Communication Equipment industry benchmarks.

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.

MSI

3.98

Communication Equipment Industry

Max
1.82
Q3
1.00
Median
0.53
Q1
0.20
Min
0.02

With a Debt-to-Equity Ratio of 3.98, MSI operates with exceptionally high leverage compared to the Communication Equipment industry norm. This suggests an aggressive reliance on debt financing, which can magnify returns but also significantly elevates financial risk.

AMD vs. MSI: A comparison of their D/E Ratio against their respective Semiconductors and Communication Equipment industry benchmarks.

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.

MSI

11.80

Communication Equipment Industry

Max
16.12
Q3
9.22
Median
2.52
Q1
-0.75
Min
-12.07

MSI’s Interest Coverage Ratio of 11.80 is in the upper quartile for the Communication Equipment industry, signifying a strong and healthy capacity to meet its interest payments from operating profits.

AMD vs. MSI: A comparison of their Interest Coverage against their respective Semiconductors and Communication Equipment industry benchmarks.

Financial Strength at a Glance

SymbolAMDMSI
Current Ratio (TTM)2.801.20
Quick Ratio (TTM)1.971.03
Debt-to-Equity Ratio (TTM)0.083.98
Debt-to-Asset Ratio (TTM)0.070.45
Net Debt-to-EBITDA Ratio (TTM)-0.221.57
Interest Coverage Ratio (TTM)30.6911.80

Growth

The following charts compare key year-over-year (YoY) growth metrics for AMD and MSI. These metrics are based on the companies’ annual financial reports.

Revenue Growth

AMD vs. MSI: A comparison of their annual year-over-year Revenue Growth.

Earnings Per Share (EPS) Growth

AMD vs. MSI: A comparison of their annual year-over-year Earnings Per Share (EPS) Growth.

Free Cash Flow Growth

AMD vs. MSI: A comparison of their annual year-over-year 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.

MSI

1.00%

Communication Equipment Industry

Max
4.72%
Q3
0.38%
Median
0.00%
Q1
0.00%
Min
0.00%

With a Dividend Yield of 1.00%, MSI offers a more attractive income stream than most of its peers in the Communication Equipment industry, signaling a strong commitment to shareholder returns.

AMD vs. MSI: A comparison of their Dividend Yield against their respective Semiconductors and Communication Equipment industry benchmarks.

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.

MSI

32.89%

Communication Equipment Industry

Max
91.96%
Q3
26.44%
Median
0.00%
Q1
0.00%
Min
0.00%

MSI’s Dividend Payout Ratio of 32.89% is in the upper quartile for the Communication Equipment industry. This indicates a strong commitment to shareholder returns but also suggests that a smaller portion of earnings is retained for reinvestment compared to many peers.

AMD vs. MSI: A comparison of their Payout Ratio against their respective Semiconductors and Communication Equipment industry benchmarks.

Dividend at a Glance

SymbolAMDMSI
Dividend Yield (TTM)0.00%1.00%
Dividend Payout Ratio (TTM)0.00%32.89%

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.

MSI

34.66

Communication Equipment Industry

Max
44.37
Q3
41.98
Median
30.61
Q1
23.44
Min
2.14

MSI’s P/E Ratio of 34.66 is within the middle range for the Communication Equipment industry. This suggests its valuation is in line with the sector average, representing neither a significant premium nor a discount compared to its peers.

AMD vs. MSI: A comparison of their P/E Ratio against their respective Semiconductors and Communication Equipment industry benchmarks.

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.

MSI

4.11

Communication Equipment Industry

Max
15.97
Q3
6.99
Median
2.78
Q1
0.66
Min
0.05

The Forward PEG Ratio is often not a primary valuation metric in the Communication Equipment industry.

AMD vs. MSI: A comparison of their Forward PEG Ratio against their respective Semiconductors and Communication Equipment industry benchmarks.

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.

MSI

6.47

Communication Equipment Industry

Max
6.38
Q3
3.88
Median
2.17
Q1
1.15
Min
0.37

With a P/S Ratio of 6.47, MSI trades at a valuation that eclipses even the highest in the Communication Equipment industry. This implies the market has priced in exceptionally optimistic scenarios for future revenue growth, posing considerable valuation risk.

AMD vs. MSI: A comparison of their P/S Ratio against their respective Semiconductors and Communication Equipment industry benchmarks.

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.

MSI

43.21

Communication Equipment Industry

Max
14.42
Q3
7.01
Median
3.09
Q1
1.38
Min
0.41

At 43.21, MSI’s P/B Ratio is at an extreme premium to the Communication Equipment 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.

AMD vs. MSI: A comparison of their P/B Ratio against their respective Semiconductors and Communication Equipment industry benchmarks.

Valuation at a Glance

SymbolAMDMSI
Price-to-Earnings Ratio (P/E, TTM)100.3234.66
Forward PEG Ratio (TTM)2.564.11
Price-to-Sales Ratio (P/S, TTM)8.066.47
Price-to-Book Ratio (P/B, TTM)3.8643.21
Price-to-Free Cash Flow Ratio (P/FCF, TTM)81.2231.23
EV-to-EBITDA (TTM)37.2224.03
EV-to-Sales (TTM)8.016.92