Analyzing Advanced Micro Devices (NASDAQ:AMD) & FARO Technologies (NASDAQ:FARO)

FARO Technologies (NASDAQ:FARO) and Advanced Micro Devices (NASDAQ:AMD) are both computer and technology companies, but which is the better stock? We will compare the two companies based on the strength of their profitability, valuation, analyst recommendations, earnings, institutional ownership, risk and dividends.

Analyst Ratings

This is a summary of current ratings and target prices for FARO Technologies and Advanced Micro Devices, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
FARO Technologies	0	2	0	0	2.00
Advanced Micro Devices	0	12	23	3	2.76

FARO Technologies currently has a consensus price target of $35.50, indicating a potential downside of 18.86%. Advanced Micro Devices has a consensus price target of $138.19, indicating a potential upside of 6.65%. Given Advanced Micro Devices’ stronger consensus rating and higher probable upside, analysts plainly believe Advanced Micro Devices is more favorable than FARO Technologies.

Profitability

This table compares FARO Technologies and Advanced Micro Devices’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
FARO Technologies	-0.26%	-0.35%	-0.18%
Advanced Micro Devices	8.03%	8.30%	6.83%

Institutional and Insider Ownership

97.2% of FARO Technologies shares are held by institutional investors. Comparatively, 71.3% of Advanced Micro Devices shares are held by institutional investors. 2.1% of FARO Technologies shares are held by insiders. Comparatively, 0.1% of Advanced Micro Devices shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Earnings & Valuation

This table compares FARO Technologies and Advanced Micro Devices”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
FARO Technologies	$342.43 million	2.47	-$9.07 million	($0.05)	-875.00
Advanced Micro Devices	$25.79 billion	8.15	$1.64 billion	$1.36	95.28

Advanced Micro Devices has higher revenue and earnings than FARO Technologies. FARO Technologies is trading at a lower price-to-earnings ratio than Advanced Micro Devices, indicating that it is currently the more affordable of the two stocks.

Risk and Volatility

FARO Technologies has a beta of 1.63, meaning that its share price is 63% more volatile than the S&P 500. Comparatively, Advanced Micro Devices has a beta of 1.99, meaning that its share price is 99% more volatile than the S&P 500.

Summary

Advanced Micro Devices beats FARO Technologies on 13 of the 15 factors compared between the two stocks.

About FARO Technologies

FARO Technologies, Inc. designs, develops, manufactures, markets, and supports software driven three-dimensional measurement, imaging, and realization solutions worldwide. The company offers FaroArm, a combination of a portable articulated measurement arm, a computer, and CAM2 software programs; FARO Laser Tracker, a combination of a portable large-volume laser measurement tool, a computer, and CAM2 software programs; FARO Laser Projector, which provides a virtual template that operators and assemblers can use to position components; FARO Laser Scanning Portfolio to measure and collect a cloud of data points for 3D rendering of an object or area; and FARO Mobile Laser Portfolio provides 3D scanning while attached to other mobile devices, such as drones for metrology, reverse engineering, factory automation, building information modeling, public safety, and other applications. It also provides FARO Software, a software solution that integrate with FARO hardware products to merge data and provide collaborative workflows and applications. It sells its products to automotive, aerospace, and metal and machine fabrication industries. FARO Technologies, Inc. was founded in 1981 and is headquartered in Lake Mary, Florida.

About Advanced Micro Devices

Advanced Micro Devices, Inc. operates as a semiconductor company worldwide. It operates through Data Center, Client, Gaming, and Embedded segments. The company offers x86 microprocessors and graphics processing units (GPUs) as an accelerated processing unit, chipsets, data center, and professional GPUs; and embedded processors, and semi-custom system-on-chip (SoC) products, microprocessor and SoC development services and technology, data processing unites, field programmable gate arrays (FPGA), and adaptive SoC products. It provides processors under the AMD Ryzen, AMD Ryzen PRO, Ryzen Threadripper, Ryzen Threadripper PRO, AMD Athlon, AMD Athlon PRO, and AMD PRO A-Series brand names; graphics under the AMD Radeon graphics and AMD Embedded Radeon graphics; and professional graphics under the AMD Radeon Pro graphics brand name. In addition, the company offers data center graphics under the Radeon Instinct and Radeon PRO V-series brands, as well as servers under the AMD Instinct accelerators brand; server microprocessors under the AMD EPYC brands; low power solutions under the AMD Athlon, AMD Geode, AMD Ryzen, AMD EPYC, AMD R-Series, and G-Series brands; FPGA products under the Virtex-6, Virtex-7, Virtex UltraScale+, Kintex-7, Kintex UltraScale, Kintex UltraScale+, Artix-7, Artix UltraScale+, Spartan-6, and Spartan-7 brands; adaptive SOCs under the Zynq-7000, Zynq UltraScale+ MPSoC, Zynq UltraScale+ RFSoCs, Versal HBM, Versal Premium, Versal Prime, Versal AI Core, Versal AI Edge, Vitis, and Vivado brands; and compute and network acceleration board products under the Alveo brand. It serves original equipment and design manufacturers, public cloud service providers, system integrators, independent distributors, and add-in-board manufacturers through its direct sales force, and sales representatives. Advanced Micro Devices, Inc. was incorporated in 1969 and is headquartered in Santa Clara, California.