Seek Returns logo

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

Updated on

Here’s a clear look at AMD and PAYC, 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 PAYC’s 13.48 billion USD, indicating a significant difference in their market valuations.

AMD’s beta of 1.99 points to significantly higher volatility compared to PAYC (beta: 0.82), suggesting AMD has greater potential for both gains and losses relative to market movements.

SymbolAMDPAYC
Company NameAdvanced Micro Devices, Inc.Paycom Software, Inc.
CountryUSUS
SectorTechnologyTechnology
IndustrySemiconductorsSoftware - Application
CEOLisa T. SuChad R. Richison
Price137.91 USD233.07 USD
Market Cap223.61 billion USD13.48 billion USD
Beta1.990.82
ExchangeNASDAQNYSE
IPO DateMarch 17, 1980April 15, 2014
ADRNoNo

Historical Performance

This chart compares the performance of AMD and PAYC 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. PAYC: 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.

PAYC

25.50%

Software - Application Industry

Max
59.01%
Q3
17.85%
Median
4.73%
Q1
-10.56%
Min
-52.94%

In the upper quartile for the Software - Application industry, PAYC’s Return on Equity of 25.50% signals a highly effective use of shareholder capital to drive profitability compared to most of its peers.

AMD vs. PAYC: A comparison of their ROE against their respective Semiconductors and Software - Application 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.

PAYC

18.14%

Software - Application Industry

Max
35.07%
Q3
9.72%
Median
0.76%
Q1
-8.68%
Min
-34.12%

In the upper quartile for the Software - Application industry, PAYC’s Return on Invested Capital of 18.14% signifies a highly effective use of its capital to generate profits when compared to its peers.

AMD vs. PAYC: A comparison of their ROIC against their respective Semiconductors and Software - Application 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.

PAYC

20.60%

Software - Application Industry

Max
48.14%
Q3
16.07%
Median
1.83%
Q1
-9.60%
Min
-45.64%

A Net Profit Margin of 20.60% places PAYC in the upper quartile for the Software - Application industry, signifying strong profitability and more effective cost management than most of its peers.

AMD vs. PAYC: A comparison of their Net Profit Margin against their respective Semiconductors and Software - Application 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.

PAYC

27.88%

Software - Application Industry

Max
51.67%
Q3
15.35%
Median
1.79%
Q1
-12.42%
Min
-45.17%

An Operating Profit Margin of 27.88% places PAYC in the upper quartile for the Software - Application industry. This signals a strong ability to translate revenue into operating profit, outperforming most of its competitors in core business efficiency.

AMD vs. PAYC: A comparison of their Operating Margin against their respective Semiconductors and Software - Application industry benchmarks.

Profitability at a Glance

SymbolAMDPAYC
Return on Equity (TTM)3.89%25.50%
Return on Assets (TTM)3.11%8.62%
Return on Invested Capital (TTM)3.29%18.14%
Net Profit Margin (TTM)8.03%20.60%
Operating Profit Margin (TTM)9.62%27.88%
Gross Profit Margin (TTM)50.09%80.38%

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.

PAYC

1.20

Software - Application Industry

Max
5.09
Q3
2.84
Median
1.70
Q1
1.12
Min
0.04

PAYC’s Current Ratio of 1.20 aligns with the median group of the Software - Application industry, indicating that its short-term liquidity is in line with its sector peers.

AMD vs. PAYC: A comparison of their Current Ratio against their respective Semiconductors and Software - Application 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.

PAYC

0.05

Software - Application Industry

Max
1.85
Q3
0.77
Median
0.18
Q1
0.05
Min
0.00

Falling into the lower quartile for the Software - Application industry, PAYC’s Debt-to-Equity Ratio of 0.05 points to a conservative financing strategy. This results in lower financial risk but potentially limits strategic investments compared to more leveraged competitors.

AMD vs. PAYC: A comparison of their D/E Ratio against their respective Semiconductors and Software - Application 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.

PAYC

156.12

Software - Application Industry

Max
39.23
Q3
8.55
Median
1.48
Q1
-14.59
Min
-39.97

With an Interest Coverage Ratio of 156.12, PAYC demonstrates a superior capacity to service its debt, placing it well above the typical range for the Software - Application industry. This stems from either robust earnings or a conservative debt load.

AMD vs. PAYC: A comparison of their Interest Coverage against their respective Semiconductors and Software - Application industry benchmarks.

Financial Strength at a Glance

SymbolAMDPAYC
Current Ratio (TTM)2.801.20
Quick Ratio (TTM)1.971.20
Debt-to-Equity Ratio (TTM)0.080.05
Debt-to-Asset Ratio (TTM)0.070.02
Net Debt-to-EBITDA Ratio (TTM)-0.22-0.63
Interest Coverage Ratio (TTM)30.69156.12

Growth

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

Revenue Growth

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

Earnings Per Share (EPS) Growth

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

Free Cash Flow Growth

AMD vs. PAYC: 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.

PAYC

0.64%

Software - Application Industry

Max
3.66%
Q3
0.00%
Median
0.00%
Q1
0.00%
Min
0.00%

With a Dividend Yield of 0.64%, PAYC offers a more attractive income stream than most of its peers in the Software - Application industry, signaling a strong commitment to shareholder returns.

AMD vs. PAYC: A comparison of their Dividend Yield against their respective Semiconductors and Software - Application 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.

PAYC

21.48%

Software - Application Industry

Max
81.09%
Q3
0.00%
Median
0.00%
Q1
0.00%
Min
0.00%

PAYC’s Dividend Payout Ratio of 21.48% is in the upper quartile for the Software - Application 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. PAYC: A comparison of their Payout Ratio against their respective Semiconductors and Software - Application industry benchmarks.

Dividend at a Glance

SymbolAMDPAYC
Dividend Yield (TTM)0.00%0.64%
Dividend Payout Ratio (TTM)0.00%21.48%

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.

PAYC

33.11

Software - Application Industry

Max
194.31
Q3
98.56
Median
51.87
Q1
22.76
Min
1.02

PAYC’s P/E Ratio of 33.11 is within the middle range for the Software - Application 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. PAYC: A comparison of their P/E Ratio against their respective Semiconductors and Software - Application 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.

PAYC

3.20

Software - Application Industry

Max
15.44
Q3
6.57
Median
2.78
Q1
0.55
Min
0.00

PAYC’s Forward PEG Ratio of 3.20 is within the middle range of its peers in the Software - Application industry. This suggests a reasonable balance between the stock’s price and its expected growth, aligning with sector valuation norms.

AMD vs. PAYC: A comparison of their Forward PEG Ratio against their respective Semiconductors and Software - Application 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.

PAYC

7.04

Software - Application Industry

Max
23.49
Q3
11.14
Median
5.62
Q1
2.84
Min
0.33

PAYC’s P/S Ratio of 7.04 aligns with the market consensus for the Software - Application industry. This suggests its valuation, based on sales, is seen as standard and is on par with its competitors.

AMD vs. PAYC: A comparison of their P/S Ratio against their respective Semiconductors and Software - Application 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.

PAYC

7.60

Software - Application Industry

Max
21.03
Q3
10.49
Median
6.36
Q1
2.89
Min
0.12

The P/B Ratio is often not a primary valuation metric for the Software - Application industry.

AMD vs. PAYC: A comparison of their P/B Ratio against their respective Semiconductors and Software - Application industry benchmarks.

Valuation at a Glance

SymbolAMDPAYC
Price-to-Earnings Ratio (P/E, TTM)100.3233.11
Forward PEG Ratio (TTM)2.563.20
Price-to-Sales Ratio (P/S, TTM)8.067.04
Price-to-Book Ratio (P/B, TTM)3.867.60
Price-to-Free Cash Flow Ratio (P/FCF, TTM)81.2235.01
EV-to-EBITDA (TTM)37.2218.70
EV-to-Sales (TTM)8.016.81