Over the past three months, the Semiconductors & Semiconductor Equipment industry (+28.7%) has been one of the growth leaders in the S&P 500 index.
Some of the largest companies in this industry (by market capitalization) are: Broadcom ($791.6B) and Advanced Micro Device ($293.5B). They are both engaged in the development and production of semiconductors.
According to the latest quarterly reporting data, we analyzed each company’s profitability, strength, and efficiency criteria according to the methodology of Stanford University professor Joseph Piotroski.
As you can see, in terms of fundamental data, Advanced Micro Device is performing better and outperforming Broadcom in terms of profitability and sustainability.
Over the past 3 months, Broadcom shares have risen by +23.0%, while Advanced Micro Device shares have risen by +6.5% (the S&P 500 index has increased by +8.1%). Broadcom has outperformed its closest competitor and demonstrated better results compared to the index.
So, the winner in today’s battle is Advanced Micro Device (AMD). And although Broadcom shares show better profitability and prevail in terms of asset turnover, Advanced Micro Devices business looks healthier in terms of return on assets, financial leverage, and liquidity.
* This is not an investment recommendation. It is up to each individual to decide which criteria to favor when making an investment decision, taking into account their goals and individual risk tolerance.
