SuperCom (NASDAQ:SPCB – Get Free Report) and Advanced Micro Devices (NASDAQ:AMD – Get Free Report) are both industrial products companies, but which is the better investment? We will contrast the two companies based on the strength of their valuation, analyst recommendations, institutional ownership, risk, dividends, earnings and profitability.
Volatility & Risk
SuperCom has a beta of 0.54, indicating that its stock price is 46% less volatile than the S&P 500. Comparatively, Advanced Micro Devices has a beta of 1.66, indicating that its stock price is 66% more volatile than the S&P 500.
Insider and Institutional Ownership
11.0% of SuperCom shares are owned by institutional investors. Comparatively, 68.4% of Advanced Micro Devices shares are owned by institutional investors. 18.3% of SuperCom shares are owned by insiders. Comparatively, 0.7% of Advanced Micro Devices shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.
Analyst Recommendations
Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
SuperCom | 0 | 0 | 0 | 0 | N/A |
Advanced Micro Devices | 0 | 4 | 18 | 1 | 2.87 |
Advanced Micro Devices has a consensus target price of $134.77, indicating a potential upside of 10.89%. Given Advanced Micro Devices’ higher probable upside, analysts plainly believe Advanced Micro Devices is more favorable than SuperCom.
Profitability
This table compares SuperCom and Advanced Micro Devices’ net margins, return on equity and return on assets.
Net Margins | Return on Equity | Return on Assets | |
SuperCom | -9.79% | 107.10% | 9.39% |
Advanced Micro Devices | 0.94% | 5.61% | 4.55% |
Earnings & Valuation
This table compares SuperCom and Advanced Micro Devices’ top-line revenue, earnings per share and valuation.
Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
SuperCom | $17.65 million | 0.13 | -$7.46 million | ($0.51) | -0.73 |
Advanced Micro Devices | $22.11 billion | 8.79 | $1.32 billion | $0.12 | 1,012.75 |
Advanced Micro Devices has higher revenue and earnings than SuperCom. SuperCom 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.
Summary
Advanced Micro Devices beats SuperCom on 11 of the 14 factors compared between the two stocks.
About SuperCom
SuperCom Ltd. provides digital identity, Internet of Things and connectivity, and cyber security products and solutions to governments, and private and public organizations worldwide. The company operates in three segments: e-Gov, IoT and Connectivity, and Cyber Security. It offers MAGNA, a platform for national ID registries, e-passports, biometric visas, automated fingerprint identification systems, digitized driver's licenses, and electronic voter registration and election management. The company also provides PureRF, a solution based on RFID tag technology to identify, locate, track, monitor, count, and protect people and objects. Its PureRF suite includes PureRF Tags, Hands-Free Long-Range RFID Asset and Vehicle Tags, PureRF Readers, PureRF Activators, PureRF Initializer, House Arrest Monitoring System, PureRF RF Bracelet, PureCom RF Base Station, GOS Offender Tracking System, PureTrack, PureBeacon, PureMonitor Offender Electronic Monitoring Software, Inmate Monitoring System, DoorGuard, and Personnel Tag. In addition, the company offers domestic violence victim protection systems. Further, it provides connectivity products and solutions comprising AVIDITY WBSac, BOLSTER WBSn, BreezeULTRA P6000, Arena controller, and BreezeNET B; cyber security strategic business unit products and solutions, which include Safend Encryptor, Safend Protector, Safend Inspector, Safend Discoverer, and SafeMobile; and wireless and RFID products include solutions for carrier Wi-Fi, enterprise connectivity, smart city, smart hospitality, connected campuses, and connected events. It sells its systems and products through local representatives, subsidiaries, and distribution channels, as well as independent representatives, resellers, and distributors. The company was formerly known as Vuance Ltd. and changed its name to SuperCom Ltd. in January 2013. SuperCom Ltd. was incorporated in 1988 and is headquartered in Tel Aviv, Israel.
About Advanced Micro Devices
Advanced Micro Devices, Inc. operates as a semiconductor company worldwide. It operates in four segments: 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 also 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; embedded processor 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, online and brick and mortar retailers, and add-in-board manufacturers through its direct sales force, independent distributors, and sales representatives. The company was incorporated in 1969 and is headquartered in Santa Clara, California.
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